Sukanya Samriddhi Yojana is one of the popular investment options catering exclusively to the financial future of the girl child. The lucrative interest rate component (currently 8.1%), the tax deductions under Section 80C, and tax-free returns, all make the scheme a great investment tool.
While the Sukanya Samriddhi Yojana scheme offers a great way to ensure apt finances for higher education or marriage expenses of a girl child, there are some lesser known facts too. Read on.
1: Any excess amount over deposit ceiling can be withdrawn anytime
All accounts under the Sukanya Samriddhi Yojana have a maximum investment limit of Rs. 1.5 Lakhs for every financial year. Since investments are made periodically as and when the subscriber wants, it is not uncommon to sometimes overshoot the maximum limit permissible under the scheme.
Any excess amount deposited will however not attain any interest and can be withdrawn on request. It is therefore essential to keep a tab on the total investments made under the scheme to ensure your money is under the stipulated cap and earning the right interest.
2: Irregular account will earn only savings interest
Sukanya Samriddhi Yojana accounts require a minimum investment of Rs. 250 per year. Failing to invest the minimum amount makes the account dormant or irregular. If the account stays irregular for 15 years, the interest rate paid is only at par with Post Office savings bank account.
If, however, the account turns irregular due to unfortunate demise of the guardian of the account holder, the rule offers an exemption and regular interest is paid out.
3: Sukanya Samriddhi account attains zero interest post maturity
Sukanya Samriddhi Yojana accounts mature after 21 years from the date of account opening. The high interest rate component means that many subscribers wrongly believe keeping their money parked in the account would continue attaining returns. No interest is paid for any of the Sukanya Samriddhi accounts once they attain maturity at 21 years from investment date.
It is smarter to opt for closure of the account post maturity and make use of the finances as per the financial plan or requirements of the girl.
4: Minimum 14 years of deposits mandatory for premature withdrawals
A Sukanya Samriddhi Yojana account allows premature withdrawals only when the girl attains 18 years of age and the money is required either for higher education or marriage. But premature withdraws are permissible only for accounts that have had 14 years of deposits.
Also, the premature withdrawals are limited to 50 per cent of the balance at the end of the preceding financial year. If the withdrawal is for education-related expenses, you will need to furnish the details of the actual fee for premature withdrawals.
5: Sukanya Samriddhi account is freely transferrable across India
Sukanya Samriddhi Yojana accounts can be opened in any of the post office branches or with any public sector banks pan India. What most people don’t know is that the account can be freely transferred should you need to do so in the event of change of address or migration from one city to another.
All you need to do is furnish a proof for a change of residence with the post office or bank where you are holding the account. In the event of no such proof, banks charge a nominal fee of Rs. 100 for account transfer.
Invest smartly and confidently, without losing out on benefits offered under the scheme. Keep the above pointers in mind while investing in the very useful Sukanya Samriddhi Yojana.