Among the small saving schemes of India Post, Sukanya Samriddhi Yojana is a government-backed scheme in which you can invest for the future of your girl child. In India, a guardian in the name of a girl child under the age of ten years can open only one account, either at the Post Office or in any bank. This account may only be established for two girl children in a household. If a family has twins or triplets, more than two accounts can be established on behalf of them. While we're talking about the Sukanya Samriddhi Yojana, let's go through the deposit, interest, withdrawal, premature closure, and account closure on maturity guidelines, according to Sukanya Samriddhi Account Rules 2019.
Deposit Rules of Sukanya Samriddhi Yojana
While opening an SSY account, one is required to make a minimum deposit of Rs 250 up to a limit of Rs 1.5 lakh in a financial year. Deposits made in surplus of one lakh fifty thousand rupees in any fiscal year, would not be eligible for interest and will be refunded to the depositor immediately. Deposits can be maintained in the account for a period of fifteen years from the day the account was opened. A defaulted account is one in which the minimum contribution amount has not been made.
An account in default can be normalized at any time until the end of a period of fifteen years from the date of the initial registration of the account, on payment of a penalty of fifty rupees for each year of default, as well as the minimum yearly contribution for the defaulted years. An account in default can be normalized at any time until the end of a period of fifteen years from the date of the initial registration of the account, on payment of a penalty of fifty rupees for each year of default, as well as the minimum yearly contribution for the defaulted years. If an account is in default and is not formalized within the period stated, the entire deposit, comprising deposits made previous to the date of default, is liable for interest at the prevailing rate of the scheme until the account is closed, according to the regulations of the Sukanya Samriddhi Account Scheme 2019.
Interest on deposit
For the quarter ending in September 2021, Sukanya Samriddhi Account will fetch an interest rate of 7.6% per annum. The relevant interest rate is computed on an annual basis and is updated quarterly. For a calendar month, the interest is computed on the lowest available balance in the account between the closing of the fifth day and the end of the month. Regardless of whether the concerned bank or post office changes due to a transfer of the account during the financial year, interest will be credited to the account at the end of each financial year. Section 80C of the Income Tax Act of 1961 exempts interest earned within a fiscal year from taxation, according to the regulations of the Sukanya Samriddhi Account Scheme 2019.
Premature closure of the account
After 5 years after account inception, Sukanya Samriddhi Accounts can be closed. The account can be closed in the case, the account holder's serious illness, or the death of the guardian who oversaw the account. The guardian shall be paid with the account balance and interest amount thereon until the date of death upon submission of a death certificate issued by the competent authority along with the duly filled application form. Interest will be paid on the amount maintained in the account between the date of death of the account holder and the date of closure of the account at the rate applicable on Post Office Savings Accounts. The account holder or guardian will be paid the entire balance in the account with interest payable in accordance with the rules of Sukanya Samriddhi Account Scheme 2019.
Withdrawal rules of Sukanya Samriddhi Yojana
After a girl child reaches the age of 18 or has completed the tenth standard, whichever comes first, a withdrawal from the SSY account is permitted. Withdrawal of up to 50% of the amount in the account at the end of the fiscal year before the year of application for withdrawal will be permitted for the purpose of education of the account holder by filing and submitting Form-3 at the relevant post office or bank.
Along with the application form, documents such as an admission letter issued by an educational institution or a fee-slip from such institution given to the account holder are required for withdrawal. The withdrawal can be made in one lump sum or in installments of not more than once per year for a maximum of five years, subject to the stated cap, according to the rules of Sukanya Samriddhi Account Scheme 2019.
Closure of SSY account on maturity
The account would mature once the girl child or the account holder reaches 21 years of age. Closure of the account will also be allowed before the completion of twenty-one years at the time of marriage of a girl child after attaining the age of 18years. A declaration duly signed on non-judicial stamp paper attested by the notary and age proof of the girl child is required while closing the account.
Closure of an SSY account shall not be permitted before one month of the scheduled marriage date or after three months of the marriage date. By correctly filling Form-4 and submitting it to the relevant post office or bank, the account holder will be paid the balance maintained, plus the prevailing interest rate applicable.