Bank of India Sukanya Samriddhi Account

Sukanya Samriddhi Scheme aims to support girl education by opening a special deposit account whose maturity is linked to the age of the girl who owns the account. It can be opened with Bank of India against a minimum annual deposit of Rs.250.

As a move to promote the wellbeing of the girl child in India, under its campaign labeled ‘Beti bachao, beti padhao’, the government of India has launched a scheme called the Sukanya Samriddhi Scheme. The objective of this scheme is that it aims at motivating people to be more dedicated their daughter’s education and future while providing them with the opportunity to do so with a special deposit account. Bank of India sukanya samriddhi yojana account allows for deposits of up to 1.5 lakhs in a year to be made in them and have a maturity that is linked to the age of the girl child in whose name it has been opened. Once the money is deposited, it is locked in for the duration and grows at a fixed rate every year. The idea being that when the girl matures, the parents have some money set aside to fund higher education or even her marriage or anything else that she might want to do.

On 23 July 2018, the criteria for minimum annual deposit for the Sukanya Samriddhi Yojana account has been revised to Rs.250 from the earlier amount of Rs.1,000. Also the interest rate for the July-September quarter is 7.6%.

Features of Bank of India Sukanya Samriddhi scheme

Before you can start investing in the Sukanya Samriddhi scheme with Bank of India, you will need to know a few thing about it, which are:

  • Deposits: The minimum amount that can be deposited in this scheme is Rs. 250 per year and the maximum is Rs. 1.5 lakhs per year.
  • It is mandatory to deposit a minimum of Rs. 250 in this account every years and failure to do so will attract a penalty of Rs. 50.
  • Deposits paying term: Deposits in this account need to be made only for the first 14 years of the account.
  • Documents required: Parents will be required to provide the birth certificate of the child while opening the account.
  • Interest rate: The Sukanya Samriddhi interest rate being offered is currently 7.6% per annum though it may or may not change in the future.
  • Withdrawals: A partial withdrawal of 50% of the amount is allowed when the girl turns 18 years old however this withdrawal can be made in order to meet expenses of education or marriage.
  • The account is available only to those whose daughters are less than 10 years old or have just turned 10 years old.
  • Each daughter can have an account in her name even if she happens to be a twin.
  • The account matures when the girl attains the age of 21 years.

Bank of India Sukanya Samriddhi Yojna Tax benefits

To add a little incentive to the investments, the contributions made towards this account are eligible for tax benefits under 80C of the Income Tax Act and are therefore limited to a maximum annual contribution of Rs. 1.5 lakhs.

Assuming that the account is opened early enough and a maximum contribution into this account is made to the tune of Rs. 1.5 lakhs every years, the depositor, at the time of maturity, can easily get up to Rs. 78 lakhs. Such an amount is ideal to help fund your daughter’s studies or indeed any other plans that she may have for her life, which makes this a good investment.

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