Sukanya Samriddhi Account Benefits in Post office are many-fold. Sukanya Samriddhi Yojana Account in a Post office is a girl child prosperity account that fetches good benefit of the highest rate of compounded interest, backed by Govt of India, that can be opened in any Post Office intended to meet the education and marriage expenses of a girl child along with tax benefits.
Infographic on Post Office Sukanya Samriddhi Account Benefits
What are the Benefits & Features of Sukanya Samriddhi Yojana Account in a Post office?
#1.The objective of SSYA? Builds confidence in parents:
In India, unfortunately, a girl child is considered a Financial Burden by many people. It may be because of outdated social practices/norms. Incidentally, people often tend to show sympathy also towards the father of a Girl Child.
In fact, a Girl child need not be a financial burden if the parents of the Girl child secure their future through proper financial planning by means of the Sukanya Samriddhi Account.
It builds confidence in the parents that they can assure proper financial security to girl child especially by saving money for higher education and marriage expenses on the opening of SSY Account.
Also Read: Sukanya Samriddhi Yojana Tax Benefits(2020)
#2.Helps to build a corpus for girls’ child higher education and marriage: ( Sukanya Samriddhi Account Benefits)
Helps to build a corpus for your girl child`s education expenses and marriage expenses with a high rate of compound interest provided for SSY when compared to other saving schemes.
#3. Attractive Rate of interest is the major benefit in Sukanya Samriddhi Yojana Account opened in a Post office:
Firstly, the rate of interest for the SSY Account is 7.6% Per Annum(with effect from 01-04-2020), calculated every year, Yearly compounded.
Secondly, you need to understand that the interest rate for SSY Account is the highest among all Small Savings Schemes. Though one should not compare with SCSS (Senior Citizen Saving Scheme) as it is purely for senior citizens, SSY interest is higher than a Senior Citizen Savings Scheme (7.4%) where normally interest rate will be high.
Normally, the rate of interest of the SSY Account shall be 75 bps (or 0.75%) above the average 10-year Govt -Security yield also for the preceding year.
Govt of India declares the interest rates applicable for every quarter in a Financial year Interest will be compounded yearly i.e., will be credited on a yearly basis.
It accrues on a monthly basis on the lowest balance between the 5th and last days of the month.
The interest shall be credited to the account at the end of each financial year and any amount of interest in a fraction of a rupee shall be rounded off to the nearest rupee and for this purpose, any amount of fifty paise or more shall be treated as one rupee and any amount less than fifty paise shall be ignored.
Pro-Tip: ( Sukanya Samriddhi Account Benefits)
Try to deposit before the 5th of every month, if you pay monthly to earn good IBB(Interest Bearing Balance) and thereby high interest.
Bonus Tip: ( Sukanya Samriddhi Account Benefits)
Try to deposit before the 5th of April every financial year( starts from 1st of April and ends on 31st of March) if you are depositing yearly once to yield high interest.
#4. Small Minimum Amount for opening & subsequent deposit:
The minimum deposit amount in the SSY account is INR. 250 in a financial year. This minimum deposit of Rs250 is compulsory every financial year up to 15 years from the date of opening the account.
#5. Feasible & Variable contribution option:
In as much as for their convenience one can contribute(deposit) any amount, any time. You can rarely see such feasibility or flexibility in any other saving scheme. Poor can deposit their small amounts as and when feasible for them instead of following a pattern (like monthly/quarterly/half-yearly/yearly). This pattern is often expected in other small savings schemes.
For example, you can open an account with RS250 today and deposit Rs100 the very next day if you have money to save. If you do not have money for few months you can skip.
When you have money after a few months, say 5 or 6 months again you can deposit any amount subject to a maximum ceiling limit of 1.5 lakhs per financial year.
You may choose to deposit monthly, yearly, or variably. The options are flexible. Needless to mention one should remember that the early you invest more, it accumulates your compound interest more and you yield more returns at the end.
#6.Flexible in operation in Sukanya Sariddhi Yojana Account in Post office
(i)Who can open Sukanya Samriddhi Yojana Account?
Parents or legal guardians or a natural guardian can open an account in the name of Girl Child ONLY. The parents or legal guardians can operate the account until the girl reaches the age of 10 years.
The girl must operate the account once she attains the age of 18 years. You can`t open an SSY account for a boy child. Further, you cannot be open for girl child beyond 10 years of age.
(ii)The age limit of the girl child for opening Sukanya Samriddhi Account in Post office:
An account can be opened up to the age of 10 years only from the date of birth of the girl child. The age limit for a girl child is 0 to 10 years. In other words, you can enroll a new-born baby in the Sukanya Samriddhi Yojana scheme.
(iii)What is the Minimum & Maximum Deposit of Sukanya Samriddhi Yojana Account in a Post office?
While the Minimum Deposit of Sukanya Samriddhi Yojana Account in a Post office or Bank is Rs250, the Maximum deposit allowed is Rs.1,50,000/- in a financial year.
(iv)Low and Flexible Subsequent deposit in SSY Account:
You can make subsequent deposits in multiples of INR 50/-. Further, you can make Deposits in lump-sum or otherwise (daily/monthly/yearly or at random).
(v) The number of SSY Accounts that can be opened:
A guardian can open only one account in the name of one girl child and a maximum of two accounts in the name of two different Girl children.
The account can be opened in the name of the third child also, provided if such girl child is born as one of the triplet girl children in the first order or the second-order as one of the twin girl children after the birth of a single girl child in the first order.
Further, you are not eligible to open an SSY account in the name of a girl child of the second order of birth, if the first order of birth in the family results in two or more remaining girl children.
(vi)No Limit on the number of deposits made in Sukanya Samriddhi Account:
No limit on the number of deposits either in a month or in a Financial year subject to the condition that the total amount deposited in a financial year does not exceed Rs1.50 Lakhs.
#7. Good Lock-in Period: ( Sukanya Samriddhi Account Benefits)
Duration of the scheme(Period of Deposits): Deposits may be made in the account till the completion of a period of fifteen(15) years from the date of opening of the account. Thus, Deposits towards the scheme should be made for 15 years. However, the scheme matures after 21 years from the date of opening.
Note: Please note that the girl attaining the age of 21 years has no relevance to the maturity in the scheme. Maturity is after 21 years of period(not age) from the date of opening of SSY Account.
Indeed, with this lock-in period on, the parents cannot withdraw the money for any other purpose except marriage or for the higher education of Girl Child which happens to be the main objective.
Of course, some parents may express their discomfort for being unable to use money deposited in SSY Account in between for other purposes. So, the advice is to deposit any amount that is not required for immediate use.
Thus, a lock-in period helps to safe-guard the amount deposited for the sake of the girl child from withdrawing for meager wants in the middle thereby promoting financial independence. So, the Lock-in period is for a good reason.
#8. Easy regularising defaulted Deposits:
If a minimum of Rs 250/- is not deposited in a financial year, the account will become discontinued. You can revive the account by paying a penalty of Rs 50/- per year along with the minimum mandatory deposit amount for that year.
#9. Partial withdrawal for the higher education of girl child:
After 18 years of age of girl child or on the passing of her tenth class, whichever is earlier, you may take a partial withdrawal of up to 50% of balance standing at the end of the previous financial year.
Amount of withdrawal is restricted to the actual requirement on account of fee and other charges required at the time of admission as shown in the offer of admission or the related fee-slip issued by the educational institute.
#10. Achieving financial goal by final Closure of Account for marriage: ( Sukanya Samriddhi Account Benefits)
The account can be closed after the completion of 21 years.
Premature Closure: Normal Premature closure will be allowed after the completion of 18 years on the occasion of marriage (1 month before and 3 months from the date of marriage) to achieve the ultimate financial goal.
#11.Triple E Benefits in income tax(Exempt-Exempt-Exempt) in Sukanya Samriddhi Account in a Post office:
Sukanya Samriddhi Yojana tax benefits are multi-fold. The principal invested in the SSY account, the interest earned, and the maturity amount are tax-free. Further, you get tax exemption for premature closure of SSY Account also.
#12. Maturity Proceeds to be Paid to Girl Child:
Another good feature is that on the maturity of the Sukanya Samriddhi Account, the account balance along with the accrued interest will be paid directly to the account holder i.e., Girl Child.
This entails financial independence to Girl child at a time when it is much needed. Maturity will be after the completion of 21 years from the date of opening of the Sukanya Samriddhi Account.
#13. Operational Independence for Girl Child:
The operation of the account will be:-
(a) By the Guardian until the depositor attains majority.
(b) By the depositor herself on attaining majority.
#14. Online Deposit facility:
( Sukanya Samriddhi Account Benefits)
Online Deposit facility is available through Intra Operable Net banking and IPPB Saving Account from the comfort of your home. If you wish to pay off-line, you may pay accordingly by visiting a nearby post office/bank.
#15. Free Transfer of Account:
You can transfer your SSY account from post offices to banks and vice versa anywhere within India. No charges will be levied for the transfer of the account.
However, You have to produce proof of a change in residence. In case no proof is produced, an Rs.100 charge will be levied.
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Now you know the benefits of Sukanya Samriddhi Yojana in Post office.
Which benefit under Sukanya Samriddhi Yojana did you like the most?
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