SBI Sukanya Samriddhi Yojana: Empowering the Girl Child

SBI Sukanya Samriddhi Yojana: Empowering the Girl Child

The SBI Sukanya Samriddhi Yojana is a government-backed savings scheme designed specifically for the future of a girl child in India. Launched as part of the "Beti Bachao, Beti Padhao" initiative, this program aims to empower girls by encouraging parents and guardians to save for their education and marriage expenses.

Key Features

• Eligibility: Open to a resident Indian girl child up to 10 years old. Up to two accounts per family, with a maximum of three for twins/triplets.
• Account Opening: Opened by parents or legal guardians at SBI branches or authorized post offices.
• Account Tenure: 21 years from opening or until the girl child turns 21 (whichever is earlier), or upon marriage after 18.
• Flexible Deposits: Deposits start as low as Rs. 250 per year, making it accessible to families from all economic backgrounds. A maximum annual deposit limit of Rs. 1.5 lakh, provides flexibility for those who can contribute more. Deposits can be made using cash, cheque, or demand draft.
• Partial Withdrawal: After the girl child turns 18, partial withdrawals are allowed for up to 50% of the balance in the account. This can be helpful for covering higher education expenses or wedding costs.
• Account Transferability: The account is conveniently transferable across branches and even to other authorized banks or post offices if the family relocates. This ensures continued account management without hassle.
• Account Deactivation/Revival: Minimum annual deposit required for 14 years to avoid deactivation. Revival possible with a penalty fee.
• Maturity and Continuation: Full balance with interest is paid upon maturity. The account can be continued beyond maturity to earn interest.

Benefits

• Attractive Interest Rates: The SBI Sukanya Samriddhi Yojana offers competitive interest rates, currently at 8.50% per annum (as of April 5, 2024). This rate is compounded annually, allowing the accumulated amount to grow significantly over the investment period.
• Long-Term Security: The Sukanya Samriddhi Yojana account matures in 21 years from the date of account opening or upon the girl child reaching the age of 21 years, whichever is earlier. However, if the girl child gets married after she turns 18, the account matures at the time of marriage. This ensures a long-term financial safety net for the girl's future needs.
• Tax Benefits: Investments in the Sukanya Samriddhi Yojana qualify for tax deductions under Section 80C of the Income Tax Act. This can significantly reduce your taxable income, offering a valuable tax advantage.

Eligibility

The Sukanya Samriddhi Yojana is available for a resident Indian girl child up to the age of 10 years. Only two accounts can be opened per family, with a maximum of three allowed in case of twins or triplets born together.

Account Opening

The account can be opened by the girl child's biological parents or legal guardian at any SBI branch or authorized post office. The process is relatively simple, requiring minimal documentation such as the girl's birth certificate, photo ID and address proof of the guardian, and a photograph of both the child and the guardian.

Account Deactivation and Revival

A minimum annual deposit of Rs. 250 is required to maintain the account's active status for at least 14 years. If this minimum deposit isn't made in a particular year, the account will be deactivated. However, it can be reactivated again by paying a 50 Rs. penalty charge along with the minimum deposit amount.

Maturity and Continuation

Upon account maturity, the entire balance, including accrued interest, is payable to the girl child. However, if she wishes, she can continue the account beyond maturity, and it will continue to earn interest at the prevailing rates.