Top benefits of Sukanya Samriddhi Yojana
Here I am going to tell you the top 10 benefits of opening a Sukanya Samriddhi Yojana account for the girl child. This Yojana was introduced in 2015 by Government of India with an objective to encourage parents to build a sufficient fund for the higher education and marriage expenses for the girl child.Let me give you some details about Sukanya Samriddhi Yojana, then after I will explain top 10 benefits of Sukanya Samriddhi Yojana. Sukanya Samriddhi Yojana Details –The main aim behind Sukanya Samriddhi Yojana is to ensure bright future for the girl child in India. Under this scheme, natural parent or Guardian of the girl child can open an account in the name of the girl. Under this scheme, an account can be open anytime at the birth of the child till she attains an age of 10. One girl can have only one Sukanya Samriddhi Yojana account and it is possible to open an account for maximum two daughters. Rules are different for Twins child. Deposit: This account can be opened with an initial deposit of Rs. 1000.Thereafter a multiple of Rs. 100 can be deposited any time. Remember in one financial year it is required to deposit a minimum of Rs. 1000 per year. In one financial year, it is possible to deposit maximum 150,000 only. After opening an account, money can be deposited in this account for next 14 years. Money can be deposited by cash, cheque, DD. Interest will accumulate in the account.Girl can operate Account: After attaining an age of 10, girl can herself operate the account. In some condition, this account can be closed even before maturity. Pre Mature Withdrawal: This scheme clearly says that a pre-mature amount of up to 50% is allowed for withdrawal after the account holder turn 18 year and the requirement for money is for marriage or higher education.Maturity of Account: Sukanya Samriddhi Yojana account matures in 21 years. In case of marriage of the account holder after 18 years, operation of the account will not possible and hence this scheme offers closure of the account after marriage of the account holder. Now let’s have a look of the top 10 benefits of the Sukanya Samriddhi Yojana.
Maximum Interest Rate: Compared to other small saving schemes, Sukanya Samriddhi Yojana offers maximum interest rate. After the review, every quarter the interest rate may change. Current interest rate is 8.3% but two years back interest rate was 9.2%.Even if the interest rate will go up or down, the interest rate in Sukanya Samriddhi Yojana will always be greater than the other small saving scheme.
Tax Rebate on Deposit: Any amount that would be deposited in Sukanya Samriddhi Yojana will be exempted from tax under section 80C of income tax act. In a financial year one can deposit maximum Rs. 150000 in Sukanya Samriddhi Yojana. The maximum rebate limit in section 80C is also Rs. 1, 50,000 meaning it is possible to get maximum tax rebate up to Rs. 1, 50,000.
Tax Rebate on Interest Amount: In many schemes or in bank deposit, there is no tax rebate on interest earned but in Sukanya Samriddhi Yojana, interest earned is completely tax-free. This information has been provided in finance bill of 2015-16.If we look into the example then we will realize that interest amount is not a small amount. Assume if the parent of girl child will start depositing Rs. 100,000 every year in Sukanya Samriddhi Yojana, immediately after the birth of girl child then at maturity the interest amount itself will be Rs. 30 Lacs. It is not small amount.
Tax Rebate on Maturity Amount: In Sukanya Samriddhi Yojana there is no tax on maturity amount. In the above example after excluding the interest amount, the amount would be around Rs. 15, 00,000. In this way no tax during maturity is big benefits.
Long Locking Period: In this Yojana account get mature after 21 years. In one thinking it is very long period but for the girl child it is very beneficial. If the locking period would be less than the whole purpose will get defeated.
Withdrawal for Higher Education or marriage: Though it is not possible to withdraw money frequently but it is possible to withdraw money for higher education of girl or for marriage. In case of marriage age of the girl should be above 18 Year. It is good for the girl that she can get money for her higher education.
Transfer of Account: If due to any reason, it is required to move from one location to another location within India then also there is no problem. Sukanya Samriddhi Yojana account can be transferred from one location to another in anywhere in India.
Account Operation by Girl: As soon as girl turns 10 year, she can operate the Sukanya Samriddhi Account by herself. Though deposit can be made by the parent or guardian. Account operation by girl is big plus in this scheme. In many ways this approach will be very beneficial to girl.
Yearly Minimum Deposit -> Rs 1000: One more good thing about Sukanya Samriddhi Yojana is yearly minimum deposit amount. In this Yojana only Rs. 1000 is required to be deposited in a Year. So maintaining this account will not be financial burden.
Benefits to Girl: This scheme was launched as part of “Beti Bachao, Beti Padhao” campaign. Main purpose itself is for the benefit of girl child.Definitely this scheme will help girl child to secure better future.