SBI Scheme For Girl Child: Rs 32,88,079 Interest Earned On Rs 1,00,000 In SBI; How To Secure HER Future?

SBI Schemes: Among many saving schemes that can be opened at the largest bank, SBI, is also the Sukanya Samriddhi Account (SSA), especially meant for the girl child. SSA is a government-backed risk-free and guaranteed returns scheme that can be opened at SBI. The best part of the scheme is that parents or guardians can open an account for their girl child at an early age, till she turns 21. An investment of Rs 1,00,000 per annum should lead to interest income of Rs 32,88,079, taking the corpus amount to Rs 47,88,079.

In general terms, Sukanya Samriddhi Account (SSA) is a Government-backed small deposit savings scheme for the benefit of a girl child.

Sukanya Samriddhi Account Features as per the SBI website:

- To promote the welfare of Girl Child

- A natural/ legal guardian on behalf of a girl child

- Upto two girl children or three in case of twin girls as second birth or the first birth itself results in three girl children

- Minimum Rs 250 of initial deposit with multiple of one Fifty rupees thereafter with an annual ceiling of Rs 150000 in a financial year.

- Tenure of the Deposit is 21 years from the date of opening of the account

- Maximum period up to which deposits can be made 15 years from the date of opening of the account.

- As notified by the GOI, compounded annually with an option for monthly interest pay-outs to be calculated on balance in completed thousands. (Current rate 8.20% from 01.01.2024 to 31.03.2024)

- As applicable under section 80C of the IT Act, 1961. In the latest Finance Bill, the scheme has been extended Triple exempt benefits i.e. there will be no tax on the amount invested, amount earned as interest and amount withdrawn.

- Irregular Payment/ Revival of account by payment of penalty of Rs.50 per year along with the minimum specified amount per year

Calculate SSA Account Gains:

Yearly Installment Gains: For instance, if a guardian makes Rs 1,00,000 instalment every year in SSA for 15 years. The total investment value will be Rs 15 lakh, while at an 8.2% rate of interest, the gains will be about Rs 32,88,079. The overall amount on maturity is of Rs 47,88,079 (Rs 32,88,079 + Rs 15,00,000).

Quarterly Installment Gains: For example, if you invest Rs 10,000 per quarter (three-month period) for your girl child, then your total investment value will be Rs 6 lakh for 15 year period. The interest earned would be Rs 12,60,802 at an 8.2% rate. While the overall corpus would be around Rs 18,60,802.

Monthly Installment Gains: Suppose, a guardian invests Rs 2,500 per month, then the investment value is about Rs 4,50,000 for a total period of 15 years. At 8.2% rate, the interest earned will be around Rs 9,36,530. While the corpus amount is Rs 13,86,530 on maturity.

These calculations are determined using the SBI calculator.

How to open an SSA account at SBI?

An account can be opened by the Guardian or Parents by visiting any SBI branch. The account may be opened by one of the Guardians in the name of a girl child, who has not attained the age of ten years as of the date of opening of the account. Every account holder shall have a single account under this Scheme.

Documents required to open an SSA account:

The application Form-1 for opening an account shall be accompanied by the birth certificate of the girl child in whose name the account is to be opened, along with required documents (Aadhaar and PAN) relating to identity and residence proof of the Guardian.

Notably, an Aadhaar of a girl child is not required for opening of Sukanya Samriddhi Account.

Premature Withdrawal Rules In SSA:

As per SBI's website, Premature withdrawal subject to the condition that the account holder for the purpose of higher education, withdrawal of up to 50 per cent of the amount in the account at the end of the preceding financial year of application for withdrawal is allowed.

Such withdrawal shall be allowed after the account holder attains the age of eighteen years or has passed tenth standard, whichever is earlier.

Also, the amount of withdrawal shall be restricted to the actual requirement on account of fee and other charges required at the time of admission as shown in the offer of admission or the relevant fee slip issued by the educational institution.

When can the account be closed?

The account shall mature on completion of a period of twenty-one years from the date of its opening.

Additionally, the closure of the account may also be permitted before the completion of twenty-one years if the account holder on an application makes a request for such closure for the reason of the intended marriage of the account holder on furnishing of a declaration duly signed on non-judicial stamp paper attested by the notary supported with proof of age confirming that the applicant will not be less than eighteen years of age on the date of marriage.

No such closure shall be allowed before one month from the date of the intended marriage or after three months from the date of marriage.