March 9, 2015

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Sukanya Samriddhi Yojana - Tax Exemption Scheme

On 22nd January 2015, our Honorable Prime minister Narendra Modi launched Sukanya Samriddhi Yojana to trigger the mantra of “Beti Bachao, Beti Padao”. Afterwards Arun Jaitley, our Finance Minister proposd to make the maturity proceeds as well as interest component tax free in the financial budget. Rationally this idea featured one of the finest small savings scheme for the investors, however better than the gold scheme of Public Provident Fund (PPF).
Let see what this scheme has gather for us…
“Sukanya Samriddhi Yojana” is equivalent to small savings scheme which can be started or opened by the legal guardian or parents of a girl child in any of the commercial banks or even in any post office. The guardian is known as the “Depositor” and girl child is known as the “Account Holder”.
Any girl child whose age is more than 10 years or lesser can have the facility of this account. In the starting months of scheme 1 year grace period will be provided i.e. 11 years of age till December 1, 2015. This means any girl child who was born between December 2, 2003 and December 1, 2004 has the facility to be an account holder.
How many accounts can be opened: You can have minimum one account in the name of a single girl child and maximum 2 accounts in the name of 2 different girl children. Apparently one can open 3 accounts on having twin girls in the second time or if someone have three daughters in one time.
Documents Required:
  • Birth Certificate of the girl child
  • ID Proof & Address Proof of parents/Guardian

How this scheme is unique?
  1. 9.1% Tax-Free Rate of Interest: The rate is not fixed it may change similar to PPF every financial year. It may not sound attractive until you can’t hear the tax free word.
  2. Scheme duration: On completion of 21 years from the date of opening the account. In case the account does not get closed on maturity, the amount of scheme will be provided the specified interest for the scheme in the usual manner.
  3. Just Deposit for 14 years: Although the scheme has a maturity period of 21 years, depositor is supposed to deposit the amount for 14 years only, after that the account will keep on earning the interest rate applicable for the remaining seven years.
  4. Premature closure: As the girl child completes 18 years and gets married before the maturity date the account can be closed prematurely. Since the maximum enrollment is 10 years for a girl giving it a lock in period of 8 years.
  5. Partial Withdraw: The scheme allows a withdrawal of 50% of the balance amount in the account if the girl completes an age of 18 years, only at the end of the previous financial year. One cannot take out the money before the complete lock in period of 8 years.
  6. Nomination Facility: There is no nomination facility in the scheme. In the case of death of girl child the account will get terminated and balance will be transferred to her guardian.
  7. Minimum/Maximum investment: One can deposit a maximum of Rs. 1,50,000 in a single financial year. Further you can make the corresponding investments on the basis of number of financial years.

    A minimum of Rs. 1,000 can be deposited in a financial year. In case of failing to make investment of Rs. 1,000 the account will become inactive and can only be revitalized after submitting a penalty of Rs. 50 along with the minimum amount of Rs. 1000 for a single financial year.
    If you are tired of your ppf account and save for your girl child it is a go getter scheme since it provides an excellent avenue of safe investment at huge returns. For your ease of decision making we are providing a difference between PPF and Sukanya Samriddhi Yojana here-


Sukanya Samriddhi Yojana

Public Provident Fund

Interest Rate




Girl Child<10 years


Duration of Scheme

21 years

15 years

Premature Closure

On marriage

Not Applicable

Partial Withdrawal

After girl attains 18 years of age only

Possible anytime from 6th year onwards

Initial Deposit

Rs 1000

Rs 500

Number of Deposits

Multiple times

12 deposits in a financial year

Number of account

Two account with the exception of twin girl

One account only
List of Banks which are authorized to open Sukanya Samriddhi Account
* State Bank of India (SBI)
* Bank of Baroda (BoB)
* Punjab National Bank (PNB)
* Bank of India (BoI)
* Canara Bank
* UCO Bank
* United Bank of India
* Andhra Bank
* Allahabad Bank
* Indian Bank
* Corporation Bank
* Central Bank of India
* IDBI Bank
* Dena Bank 


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