Andhra Bank Sukanya Samriddhi Account

The Indian Government’s initiative, known as the Sukanya Samriddhi Yojana can be opened through Andhra Bank. It is hugely famous for its financial and banking services. Opening a Sukanya Samriddhi account through Andhra Bank is super easy and simple!

Effective 1 April 2020, Andhra Bank Sukanya Samriddhi Account has merged with Union Bank Sukanya Samriddhi Account.

The government of India has launched a scheme call the Sukanya Samriddhi Yojana which can be applied for through Andhra Bank. This is an investment scheme targeted at the girl child and affords parents the facility of an account where annual contribution of up to Rs. 1.5 lakhs can be made. The contributions grow at a predefined rate of interest and are locked in till the girl attains the age of 21 years. It also offers taxpayers, tax benefits under section 80C and can be used to fund things like education and marriage of the girl. It is a scheme that can be availed by anyone and can be invested in with amounts as little as Rs. 250 per year. The Andhra Bank Sukanya Samriddhi Yojana account can also support partial withdrawals once the girl, in whose name the account is opened, attains the age of 18 years.

Features of Andhra Bank Sukanya Samriddhi Scheme

There are a lot of features that investors in this account need to be aware of before investing. Some of the most important ones are:

  • Account opening: Andhra Bank Sukanya Samriddhi Yojana account can be opened for any girl who is under the age of 10 years. If the girl is already 10 years old, then then a buffer of 1 year is provided for the opening of the account.
  • Only one such account can be opened for each child. If the children happen to be twins then one account in the name of each girl can be opened.
  • Deposits: The minimum amount that can be invested in a year is Rs. 250 and the maximum is Rs. 1.5 lakhs. You can use the Sukanya Samriddhi Yojana calculator for calculating how much monthly amount you want to put in your Sukanya Samriddhi Account.
  • If a minimum amount of Rs. 250 is not deposited in a year then a penalty of Rs. 50 can be charged.
  • While the initial investment needs to be of a minimum of Rs. 250, subsequent investments can be in multiples of Rs. 100.
  • Deposits paying term: The investments into this account need to be done every year for the first 14 years only.
  • Documents required: The investors will have to submit the account opening form along with a birth certificate for the child.
  • If the children are twins then a certificate from a reputed institute will also be required.
  • Interest rate: The interest rate for Sukanya Samriddhi Yojana is determined by the government and is currently 7.6% per annum.
  • Withdrawal: No withdrawals are permitted from this account till such time as it matures.
  • Once the girl is 18 years old, a partial withdrawal of 50% of the balance at credit can be withdrawn but only if it is used for her education or marriage.
  • Premature closure: Only if the account holder passes away or the family proves to the government that continuing investments into the account would have a negative impact on their finances can the account be closed before maturity.

Andhra Bank Sukanya Samriddhi Yojana Tax Benefits

The tax benefits provided by this scheme are governed by section 80C of the Income Tax act and can be claimed for an amount up to Rs. 1.5 lakhs per year.

The way the Sukanya Samriddhi scheme is designed, it can be very helpful for anyone who is looking to create savings for future expenses related to the wellbeing of their daughters.

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