Suknaya Samriddhi Yojana; we tell you all about the plan
Premature Closure (before completion of 21 years) is allowed if the beneficiary (girl) intends to get married. 'Disclaimer: This story is for informational purposes only and should not be taken as investment advice.'
You can contribute to the account until the completion of 15 years (earlier 14 years) from the date of opening the account. The Sukanya Samriddhi Account matures in 21 years.
From the beginning of the 16th year until the end of the 21st year from the date of opening the account, there shall be no further contributions. However, the balance in the account continues to earn interest until the end of the 21st year. This means you cannot deposit money from 16th until 21st year but the balance continues to earn interest during the period.
Sukanya Samriddhi Scheme Interest Rate
The rate of interest is notified by Ministry of Finance, government of India every quarter. For the current quarter (Jan-March, 2018), the notified interest rate is 8.1% p.a. Your balance earns interest at the specified rate for the quarter.
If you invest Rs 1.5 lakh every year (for 15 years) at the start of the financial year in a Sukanya Samriddhi account for your daughter, the corpus will grow to Rs 72.85 lakh at the end of 21 years. The assumption is that the interest rate stays at 8.3% during the entire term.
Credit of Interest
The interest shall be calculated on the lowest balance between 10th and the last day of the month. So essentially, you should deposit on or before 10th of every month to maximize returns. Won’t impact returns too much though.
Mode of Contribution
You can make contributions in cash, by cheque or demand draft or through online transfer.
You can transfer Sukanya Samriddhi accounts across post offices, across banks and even from a post office to a bank (or vice-versa) free of cost. You will have to furnish proof of shifting of residence (for guardian or account holder).
If both the concerned banks or post-offices have access to Core Banking Solution (CBS), the amounts in the account can be transferred online.
The account matures after completion of 21 years from the date of opening the account.
The balance in the account will not earn any interest once the maturity period of 21 years is complete. Hence, your daughter must withdraw money from the account once the account completes 21 years.
Premature Closure Rules
Premature Closure (before completion of 21 years) is allowed if the beneficiary (girl) intends to get married. Such application for premature closure cannot be made unless the beneficiary turns 18. You need to furnish age proof.
Such application for premature closure shall be made at least a month before the date of marriage or within 3 months from the date of marriage. By the way, there is no mention of what is an acceptable proof of intention to get married.
If you are saving in SSY account for your daughter’s marriage, you should be able to take money out for marriage.
'Disclaimer: This story is for informational purposes only and should not be taken as investment advice.'