Allahabad Bank Sukanya Samriddhi Account

Sukanya Samriddhi Yojana account can be opened for any girl child who is not more than 10 years old. The procedure for opening a Sukanya Samriddhi account in Allahabad Bank is super easy. With a few documents and simple steps, it will be done in no time.

Effective 1 April 2020, Allahabad Bank Sukanya Samriddhi Account has merged with Indian Bank Sukanya Samriddhi Account.

In accordance with the government plans, Allahabad Bank is also offering the Sukanya Samriddhi account. This is an account that can be opened in the name of a girl child who is under the age of 10 years and matures when she turns 21 years old. The parents or the guardians of the child can deposit money in the account every year and that money grows at a rate of interest determined by the government. It is an investment that has been provided in the interest of encouraging parents to invest in the future of their daughters buy putting aside whatever they can. The investments in this account can start with an amount as little as Rs. 250. These investments, once made, are also eligible for certain tax benefits.

Features of Sukanya Samriddhi Scheme

Here are some of the features of Sukanya Samriddhi Yojana, offered by Allahabad Bank, which will be most pertinent to first time investors.

  • Account opening: The account is available to all the families who have a daughter who is not yet 10 years old.
  • Each girl child can have an account in her name even if the family happens to have daughters who are twins.
  • If the child is already 10 years old then the government allows for a buffer of about 1 year for this account to be opened in her name.
  • Deposits: The minimum deposit that can be made is Rs. 250 and the maximum is limited to Rs. 1.5 lakhs.
  • Investors will have to ensure that they invest at least Rs. 250 every year in the account.
  • Once the initial investment is done, subsequent investments can be done in multiples of Rs. 100.
  • Deposits paying term: Investment made into this account need to be made only for 14 years from the date on which the account is opened.
  • Documents required: The main document required is the Sukanya Samriddhi account application form. Other than that, the birth certificates will also be needed.
  • When it comes to daughters who are twins the parents may also have to provide a certificate to that effect.
  • Interest rate: The interest rate for Sukanya Samriddhi yojana account is determined by the government and the current rate is 7.6% per annum.
  • Withdrawal: There are no withdrawals permitted from this account till it matures however, when the girl turns 18 years old, 50% of the balance in the account can be withdrawn.
  • The amount withdrawn when the daughter turns 18 years old can only be used for her education or marriage.
  • Premature closure: There are only two conditions where a premature closure of the account will be permitted.
    • The first condition is if the account holder dies.
    • The second condition is when investment in the account proves to be harmful to the family’s finances.

Sukanya Samriddhi Yojana Tax Benefits

The tax benefits that this deposit brings to the investors are governed by section 80C of the Income Tax Act and have a limit of Rs. 1.5 lakhs on the amount that can be invested in them in one year.

As an investment, this is a great way for any family to ensure that they have something provided for their daughters when they grow up. The maximum advantage that this account can give is up to Rs. 78 lakhs, assuming that the investment made every year is Rs. 1.5 lakhs and that the interest rate remains 7.6% per annum.

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