Interest rate update for April-June 2024 quarter
The interest rate for the Sukanya Samriddhi Yojana scheme remains unchanged from the previous quarter, standing at 8.2% for the April-June 2024 quarter.
Who can open a Sukanya Samriddhi Account?
Parents or legal guardians can open an account for a girl child under ten years old, states an ET report. They are permitted to open accounts for a maximum of two girl children. However, only one SSY account can be opened in the name of each girl child, either by a natural or legal guardian.
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Documents required for opening an SSY Account
- Passport size photograph
- Copy of ID proof
- Birth certificate copy of the girl child
- Residence proof as per RBI KYC policy
Premature closure of SSY Account
An SSY account can be closed under certain circumstances:
- In the event of the account holder’s death.
- In cases of extreme compassionate grounds, such as severe medical conditions threatening the account holder’s life or the death of the guardian causing undue hardship to the account holder.
However, premature closure of an account under these circumstances is not permitted before completion of five years from the date of opening the account.
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Key details of SSY
The Sukanya Samriddhi Yojana requires a minimum annual deposit of Rs 250, up to a maximum of Rs. 1,50,000. Failure to deposit the minimum amount incurs a yearly penalty of Rs 50. The account matures after 21 years from opening and does not offer loan facilities. Withdrawals are allowed after the account holder turns eighteen or completes the tenth grade, whichever happens first. Deposits can be made until the account reaches fourteen years from its opening date.
Tax benefits
Under Section 80C of the Income Tax Act, investors can claim exemptions of up to Rs 1.5 lakh for the Sukanya Samriddhi Yojana. The interest earned upon maturity is tax-free. Investors in SSY enjoy triple tax benefits: the principal invested, the interest earned, and the maturity amount are all exempt from taxes. However, it’s important to note that opting for the new tax regime renders one ineligible for 80C deductions.
