Sukanya Samriddhi Scheme for your daughter's future: Minimum deposit, interest and other details

New Delhi: Your savings is what gets you sailing in times of crisis. Investment or savings, made wisely will not only benefit you but your children too.
Small Savings Schemes are one of the best options that can be made for your children to make a buffer or cushion for their future.

One such government backed Small Savings Schemes is the Sukanya Samriddhi Account.

Sukanya Samriddhi Scheme account can be opened in the name of a girl child till she attains the age of 10 years. The deposits made to the account, and also the proceeds and maturity amount, would be fully exempted from tax under section 80C of the Income Tax Act.

Here are the key facts about the Sukanya Samriddhi Scheme

1. Account can be opened in the name of a girl child till she attains the age of 10 years.

2. Only one account can be opened in the name of a girl child.

3. Account can be opened in Post offices and notified branches of commercial banks.

4. Birth certificate of the girl child in whose name the account is opened must be submitted.

5. Account can be opened with a minimum of Rs 250 - and thereafter any amount in multiple of Rs 100- can be deposited. The deposits made to the account, and also the proceeds and maturity amount, would be fully exempted from tax under section 80C of the Income Tax Act.

6. Maximum Rs 1,50,000 can be deposited in financial year. Deposits can be made up to 14 years from the date of opening of the account. After this period, the account will only earn interest as per applicable rates.

7. One withdrawal shall be allowed on attaining the age of 18 years of account holder to meet education/marriage expenses at the rate of 50 percent of the balance at the credit of preceding financial year.

8. The account can be transferred anywhere in India from one Post office/Bank to another.

9. The account shall mature on completion of 21 years from the date of opening of account.

10. The interest rate on Sukanya Samriddhi account is revised every quarter, just like other small savings schemes and PPF. Rate of interest 7.6% Per Annum (with effect from 01-04-2020 ), calculated on yearly basis ,Yearly compounded.