HYDERABAD: Planning for children’s education and future is an important financial goal for parents. There are savings schemes specially designed for this purpose, one among them Sukanya Samriddhi Yojana for girl child.
Sukanya Samriddhi Savings Account is a government-sponsored scheme that can be availed at all post offices and most of the banks.
An account can be opened by contributing as less as Rs 250 per year, with a maximum limit extending up to Rs 1,50,000. While Rs 1,000 was the minimum amount per annum to be contributed earlier, it was slashed to Rs 250 on Sunday, in order to make it affordable for more people.
According to the scheme, parents or legal guardians can open an account in the name of the girl child. While a minimum of Rs 250 and maximum of Rs 1,50,000 can be made in a financial year, all the subsequent deposits should be made in multiples of Rs 100.
Depositors can make multiple small deposits or in lump sum, with no limit being put on the number of deposits in a month or a year, thus offering flexibility. The account can be opened for girls up to the age of 10 years and will be closed after she attains the age of 21. Premature closure will be allowed after completion of 18 years, provided that the girl is married.
Partial withdrawal, maximum up to 50 per cent of the balance standing at the end of the preceding financial year, can be taken after the account holder turns 18. Another advantage of the scheme is that deposits should be made up to 14 years from the date of opening of the account, after which the interest is compounded and earned on the deposits accumulated till then.
“As the cost of expenses towards children’s college fees, overseas education, marriage and other needs are rising exorbitantly with each passing year, parents need to be extra smart while planning their future. They need to explore as many better savings and investment alternatives.
Sukanya Samriddhi Account can be undoubtedly made part of one’s financial planning, as it allows better interest rate.
Besides better interest rate, it can be availed at any post office or designated bank branches with all the major banks providing this facility,” said Subba Rao Anupindi, financial adviser.
According to BankBazaar’s interest calculator, assuming the rate of interest as 9.1 per cent per annum, if one deposits Rs 1.5 lakh per annum, starting from first year of the girl child up to 14 years, an amount of Rs 78.90 lakh will be accumulated by the end of her 21st year.
What does the Account offer?
■ Deposits can be made between I250 to I1.5 lakh per annum
■ No restriction on number of times deposits can be made
■ 8.1% is the current rate of interest per annum (changes quarterly)
■ Open account in any post office or designated bank branches
■ Deposits, interest accrued and proceeds exempt from income tax