One of the banks providing the service to open a Sukanya Samriddhi account is the State Bank of India. It is among the small savings schemes that the government introduced. It provides financial assistance for a girl’s schooling or marriage.
The aim of this scheme is to support girls with a brighter life and thus inspire the female ratio across the country. This scheme, as per its name, is intended solely for girls and offers financial assistance aimed at completing higher education or satisfying marriage requirements.
In relation to minimal banking options such as savings accounts, corporate accounts, personal and personalized loans, State Bank of India also provides, to meet the needs of the banking services.
Key benefits of Sukanya Samriddhi Account
As the main characteristics of this specialized small savings scheme, the following can be discussed:
Opening of the account
An account can be opened on behalf of the girl child by adoptive parents or legal guardians via the minimum deposit of Rs 250 up to a limit of Rs 1,50 lakh.
One account per girl child is permitted and a limit of three accounts, according to the circumstance that the family has twin children, can be permitted in a family.
At post offices and authorised bank branches a SSY account can be opened and thus transferred too. When the girl child hits the age of 10, on her behalf, the account can be run by a legal guardian or parent.
The account holder for this span will also be the administrator of the account. When the girl’s child turns 10 years old, she can opt to administer the account herself.
At the expiration of the deposit term of 18 years, the account can be closed or withdrawal can be made.
Minimum deposit limit
A minimum deposit of Rs.250 per year is required for the account and a maximum deposit of Rs.1.5 lakh is permitted per year.
Contributions can be made in multiples of Rs.50 according to the above limitations by cash and/or cheque.
Tenure and partial withdrawal facility
SSY account comes with a tenure of 21 years. It is possible to pay or keep the balance of the account as is, causing more accrual of interest before the date the account is effectively terminated.
Withdrawal of 50 percent from SBI Sukanya samriddhi Account can be made for higher education/marriage purposes once the girl has reached the age of 18 or passed class 10th.
For the current quarter of March 2021 the interest rate is kept at 7.6%. The interest is calculated on yearly basis and compounded on a yearly basis.
SSY investments are classified as an EEE (Exempt, Exempt, Exempt) investment from a taxation standpoint. This indicates that the deposited principal, the interest received, and the maturity amount are free from taxation.
Under Sukanya Samriddhi Yojana’s current taxation laws, under Section 80C of the Income Tax Act, 1961, the tax deduction benefit on the principal amount invested is up to Rs 1.5 lakh per annum.
The requisite documents for opening an SSY account are listed below:
- Application form for opening a SSY account
- Valid birth certificate of the girl child
- At the time of opening the account, the ID proof and address proof of the individual must be submitted.
- Medical certificate must be submitted in case of multiple children
Procedure to open an SSY account at SBI
The method of opening an SSY account is very straightforward. You must visit the nearest SBI branch, where a bank official can support you further. All you have to do is fill out the SSY application form, along with the documents and minimum deposit amount of Rs 250.
Once the documents have been authenticated your account will be opened successfully. Even if you do not have an existing account with SBI, you can open an SSY account if you are a legal guardian of a girl child as well as the other eligibility requirements are being satisfied.
In the name of the girl child, the person opening the SBI SSY account must either be a legal guardian or the girl child’s parent. The individual must be the depositor and thus manage the account until the girl child reaches the age of 10.
In the event of an unauthorized payment or if you choose to reopen the SSY account, an ongoing penalty of Rs.50 will be imposed along with the minimum prescribed amount.
How to check SSY account balance at SBI online?
- Apply for SSY at your nearest SBI bank branch and receive your SSY account’s login credentials. Remember that this service has not started to be provided by all banks, and only a few banks allow their depositors to verify the SSY account balance online.
- Sign in to your SBI net banking account using the required credentials.
- Go to the homepage once you are signed in, and there you can verify the balance. Under the dashboard of your account you can find the option for the same.
- Remember that you will only be able to check the balance in your account through this procedure. By means of this portal, you will not be able to render deposits.