In this day and age, despite considerable progress in technology and perception, there are still people who consider a girl child an ill omen and a burden. Financially, a girl child is termed a liability and is generally not encouraged to study and create a life for herself. To counter this, the government launched the Sukanya Samriddhi Scheme.

The Sukanya Samriddhi Account is a small savings scheme launched on 22nd January 2015 as part of the Beti Bachao Beti Padhao initiative. The initiative aims to curb gender inequality and misapprehensions related to the girl child.

There are financiers like Bajaj Finserv who offer Lifestyle Loans that can be used to provide a certain level of comfort to your child.

Empowerment, Done the Right Way

The Sukanya Samriddhi Scheme is a small step toward saving money for the girl child that can be used for education and future endeavours.

This scheme can be thought of as an investment scheme for the girl child rather than solely a savings account. The high-interest rate and affordability make this scheme a valuable step on the road to women’s empowerment.

The Procedure to Open and Maintain a Sukanya Samriddhi Account

So, do you know where to open a Sukanya Samriddhi Account? Various financial institutions and banks are being authorised to open accounts under this scheme.

You require three simple documents to open this Sukanya Samriddhi Account.

  1. Birth certificate of the girl child: This can be provided by the hospital where the child was born. A certificate issued by a government official will also be considered valid for opening the account.
  2. Address proof of parent(s)/guardian(s): A valid residential address proof can include a passport, PAN card, telephone bill, Aadhar Card, or any government-issued card.
  3. ID proof of parent(s)/guardian(s): Similarly, a valid ID proof can include any government-issued certificate.

Now that you know where to open the account and the documents required, let us delve into how to open a Sukanya Samriddhi Account and how to deposit money under the scheme.

  • The most important point to remember is that the account can be opened in the name of the girl child, and only one account is permitted per child. The parent(s)/guardian(s) will act as the depositors.
  • Only a parent or guardian is eligible to open an account. A maximum of 2 accounts can be opened. In case of multiple children such as twins or triplets, an exception is allowed, provided you present the supporting documents from a medical institution.
  • The account can be opened till the girl attains 10 years of age. For convenience, children born between 2nd December 2003 and 1st December 2004 are also eligible for this scheme.
  • Depositing money via the scheme is easy and affordable. The opening amount for the account is INR 1000. You can continue depositing money in multiples of 100 thereafter. The minimum deposit has to be INR 1000 while the maximum is INR 1.5 lakhs per annum.

NBFCs like Bajaj Finserv offer Fixed Deposit schemes that can help secure a better future for your child.

Why Choose a Sukanya Samriddhi Account Over Other Saving Schemes?

Besides being a secure savings fund for your daughter, the Sukanya Samriddhi Account has many financial benefits attached.

  1. Tax savings: Under section 80C of the Income Tax Act, this scheme is fully exempt from taxation. Not only will the amount deposited be exempted from tax, but the interest accrued and the amount after maturity are not taxed.
  2. High rate of interest: This scheme offers a floating interest rate of 9.2% that will be revised every year. As of now, this is the highest interest rate among other government small savings schemes.
  3. Lock-in period: The maturity of the account is 21 years from the date of opening the account. Premature withdrawal is allowed only once and after the child has attained 18 years of age. It is restricted to 50% of the balance at the end of the previous financial year.
  4. Term: The depositor needs to deposit amount only till the completion of 14 years from the date of opening the account.
  5. Account closure: The account can only be closed once the child turns 21. It will attract interest till the account is closed.
  6. Proceeds paid to the account holder: On maturity, the accrued interest and balance will be paid to the girl child and not to the depositor.

Now that you know more about the Sukanya Samriddhi Account features and benefits, you can utilise this resource to build a secure and equitable future for your daughter.

Even if your child isn’t eligible for this particular program, you can secure her future by investing in the mutual funds scheme offered by Bajaj Finserv.

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