The government's move to encourage girl education and save funds for them has got a tremendous response through the Sukanya Samriddhi. However, the pick up from banks and post office is slow.

There are many post office and banks which are not yet aware of the Sukanya Samriddhi Yojana Account. But with time we can expect most of the banks and post offices to follow guidelines for opening accounts under the same.

How to open Sukanya Samriddhi Account in Post office?

One needs to download the form and fill in the necessary details, carry all mentioned document along with photograph and submit at the post office.

There are chances that some of the post offices may not be still aware of the scheme. So, have patience and wait for them.

Download the Form From RBI

• Fill the application form
• Carry ID and Address proof
• Good if you have Aadhaar card.
• Birth certificate of the girl child.
• Photographs of parent and girl child

Find the list of authorize banks where you can open Sukanya samriddi account.

The minimum deposit is Rs. 250. (previously it was Rs. 1000) and maximum deposit permissible per year is Rs. 1,50,000. One can deposit any number of times in a financial year i.e. April-March.

What this means is that not only dies the instrument give you tax benefit under Sec 80C of Income Tax Act, but the interest amount is also exempted from tax. This is on par with the PPF, but, the interest rate on the PPF is low at the moment.

Rate of interest at the moment is 8.5 per cent, per annum for this particular year. This will be calculated on yearly basis and compounded yearly.

If one misses a deposit for that particular year, they need to pay a penalty of Rs 50 each year.

Partial withdrawal of a maximum upto 50 per cent of the balance standing can be taken after the girl attains the age of 18 years. Total amount can be withdrawn and account can be closed after completion of 21 years.

What are the rules for partial withdrawal?

To meet the financial needs of the account holder for higher education and marriage purposes, it is possible to withdraw up to 50% of the balance credited to the account at the end of the previous fiscal year. However, the withdrawal will only be authorized when the account holder is 18 years old.

For this, not only a written request but documentary evidence in the form of a confirmed offer of admission to an educational institution or a statement of fees from that institution stating that this financial requirement is required. In addition, the amount of the withdrawal will be limited to the actual request for fees and other charges required at the time of admission, as indicated in the offer of admission or the corresponding fee schedule issued by the establishment.

If the girl is married at the age of 18, a pre-mature withdrawal is possible. A single guardian can maximum open two account for two different girls. If an individual has three girls he can open two accounts.

Maturity of the account

The account matures at the end of a period of 21 years from the date of opening or each time the girl gets married, whichever comes first, subject to the following conditions:

It is also provided that when the marriage of the account holder takes place before the expiration of this period of 21 years, the functioning of the account will not be authorized beyond the date of her marriage.

Provided further that when the account is closed before the end of 21 years, the account holder must provide an affidavit certifying that she is not less than 18 years old on the date of closing the account. At maturity, the balance, including overdue interest in the account, will be payable to the account holder upon production of the withdrawal slip with the passbook.

Conclusion

The major disadvantage of the account is the lock in period. However, it is done to make people stay invested in. As of now there is no loan facility and online facility.

This is a initial step by the government, we can expect some major benefits and features in future.

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