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Sukanya Samriddhi Account or Girl Child Prosperity Scheme is a special depositscheme launched by Prime Minister Narendra Modi on 22 January 2015 for girl child.Under the scheme an account can be opened by the parent or legal guardian of a girlchild of less than 10 years of age with a minimum deposit of Rs 1,000 in any post officeor authorised branches of commercial bank. Under the scheme, an interest of 9.20per cent is provided for the FY 15-16; however the interest rate will changes everyyear. The account will remain operative for 21 years from the date of opening of theaccount or till marriage of the girl child. Partial withdrawal up to 50 per cent of theaccount balance is allowed to meet education expenses of the girl child till she attains18 years of age.

The opening of Sukanya Samriddhi Account:

For a girl child who is less than 10 years old natural or legal guardian can open only oneaccount in her name. Account can be opened from the birth of the girl child till sheattains the age of ten years. Guardian of the girl child will be allowed to open andoperate accounts of maximum of two girl children except in the case where theyhave twin girls the second time or triplets (three girl children). One can open account forgirl born after Dec 2003.

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Deposits in Sukanya Samriddhi Account:

The initial deposit: Rs. 1,000 and then in multiples of Rs. 100.Minimum deposit: Rs 1000. Failure to deposit Rs 1000 a year will cost Rs. 50 inpenalty.Maximum Deposit: Total deposit should not exceed Rs 1.5 lakh. The deposit shallbe made by cash, cheque or demand draft.

Maturity or closer of Sukanya Samriddhi Account:

The account will mature after 21 years from the date of opening. If the girl gets marriedbefore completion of twenty one years, the operation of the account will not be permittedbeyond the date of her marriage. An affidavit also has to be provided to the effect thatgirl is not less than eighteen years of age as on the date of closing of account.

Withdrawals from Sukanya Samriddhi Account:

Withdrawal before the daughter turns 18 is not allowed. Partial withdrawal, 50% of thetotal amount, is allowed when the account holder turns 18, for financial requirementssuch as education or marriage.

Interest on Sukanya Samriddhi account

The government had declared 9.1% interest rate for financial year 2014-

15. The interest rate for financial Year 2015-16 is fixed 9.2%. The interest rate will be set every year The Interest earned is also tax free.

Interest calculation on Sukanya Samriddhi account

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Calculation of interest will be similar to Public Provident Fund (PPF). PPF interest iscalculated monthly on the lowest balance between the end of the 5th day and lastday of month, however the total interest in the year is added back to PPF only at theyear-end.

Taxation on Sukanya Samriddhi account

The taxation comes under EEE which means exempt on deposit, exempt when accountis functional and exempt on closing..

The amount deposited in Sukanya Samriddhi Account is deductible under

section 80C No tax will be levied on the interest amount. No tax will be levied on the maturity amount

Can I open the account online?The deposit can be made by only by cash, cheque or demand draft. No online facility.

Can I transfer the account to other states?The account may be transferred anywhere in India if one shifts from the place where theaccount stands.

Where to open the account?One will be able to open this account in a post office or an authorized bank branch.

Can NRI parent open the account?NRIs are not eligible to invest in such schemes. But remember that one has to physicallygo and pay the amount.

DOB of my daughter is 27.01.2005, can I open the SS Account for her.One can open account for girl born after Dec 2003. So you can open Sukanya Samriddhi account for you daughter

In case of two girl children max deposit of 1.5L is applicable per child or both children put together?The max amount for a girl is 1.5 lakh. So for two girls it’s 3 lakh.

My daughter’s age is 7 and if I open account now, should I pay for 14 years or

should I pay till she reaches 14 yrs? if I need to pay for 14yrs, then she will

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receive amount at age of 28yrs, then what’s is the use of getting amount after her

studies and marriage? In this case I don’t think it’s right saving scheme…..

One needs to deposit for 14 years from the day of opening the account. So one has to

deposit till the child is 21 years.

Before completion of 21 years of account opening and after daughter turns 18 one i.e

from 18 years to 28 years, one has two options

1. Withdraw 50% of the money for higher education.

2. If daughter gets married (on attaining age of 18 years), one will have to close the

account. As a result one will get the money which can be used for her marriage.

So this account is tied to the goal of education and marriage of daughter.

According to the scheme the girl child will be able to operate the account once

she is 10 years old. Does it mean the child will be able to withdraw 50% once she

is 14 years? Also who will receive the amount on maturity, the depositor or the

account holder?

Withdrawal before the daughter turns 18 is not allowed. Partial withdrawal, 50% of the

total amount, is allowed when the account holder turns 18, for financial requirements

such as education or marriage. The girl child will receive the amount.

Is nationality of the girl child would not effect here? Is it like as the guardian is

Indian, he/she can open this account?

To open the Sukanya account one needs the birth certificate of the girl and address &

identity proof of the depositor so theoretically nationality of the girl child should not

effect.

List of Banks which have been authorized to open Sukanya Samriddhi Account :

1. State Bank of India2. State Bank of Patiala3. State Bank of Bikaner & Jaipur4. State Bank of Travancore5. State Bank of Hyderabad6. State Bank of Mysore7. Andhra Bank

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8. Allahabad Bank9. Bank of Baroda10. Bank of India11. Punjab & Sind Bank12. Bank of Maharashtra13. Canara Bank14. Central Bank of India15. Corporation Bank16. Dena Bank17. Indian Bank18. Indian Overseas Bank19. Punjab National Bank20. Syndicate Bank21. UCO Bank22. Oriental Bank of Commerce23. Union Bank of India24. United Bank of India25. Vijaya Bank26. Axis Bank Ltd.27. ICICI Bank Ltd.28. IDBI Bank Ltd.