ICICI Bank Sukanya Samriddhi Account

Features of ICICI Bank Sukanya Samriddhi Account

The following can be mentioned as the salient features of this specialised small savings scheme 

• Account Opening - Account can be opened by biological parents or legal guardians on behalf of the girl child through an initial deposit of Rs.250. One account per girl child is allowed and a maximum of two accounts can be allowed in a family, subject to the condition that the family has had twin girls. Accounts can be opened at post offices and authorised bank branches and are transferable across India.
• Deposits - Account requires a low deposit of Rs.250 per year and a maximum deposit of Rs.1.5 lakh in a year in a year is allowed. Deposits can be made through cash and/or cheques in multiples of INR 100 subject to the aforementioned limits. Deposits can be made for a period of 15 years.
• Account Operator and Depositor – Until the girl child reaches the age of 10, the account can be operated by a legal guardian or parent on her behalf. The operator of the account will also be the depositor for this period. Once the girl child achieves the age of 10 years, she can choose to operate the account herself. The guardian or parent can still remain the depositor till the end of the deposit period of 15 years.
• Account Tenure – The account or deposit has a tenure of 21 years at the end of which the deposit achieves maturity and is released from the lock-in period. The amount in the account can be paid out or can be kept as is, allowing further accrual of interest till the date the account is actually closed
• Partial Withdrawal – After the girl child has reached the age of 18 years, 50% of the funds in the account can be withdrawn for the purpose of higher education or marriage

Benefits of Sukanya Samriddhi Yojana  

The various benefits of Sukanya Samriddhi Yojana are mentioned below 

1. Guaranteed Returns: The Sukanya Samriddhi Yojana, being a government-backed initiative, assures returns on investments. 

2. Higher Interest Rate: SSY offers a fixed rate of return higher than other government-sponsored tax-saving programs like PPF, which currently stands at 8.2% annually for FY (2023-24). 

3. Compounding Benefits: With the Sukanya Samriddhi Yojana (SSY) offering the advantage of annual compounding, it serves as an excellent long-term investment plan. This means even modest investments can yield significant returns over time. 

4. Investment Flexibility: Deposits can be made starting from as little as Rs. 250 up to Rs. 1.5 lakh per year. This ensures that individuals from various financial backgrounds can participate in the SSY program. 

Tax benefits on investment made in Sukanya Samriddhi Yojana: 

The government has extended certain tax benefits in order to promote SSY scheme: 

1. Contributions made to the SSY scheme are eligible for deductions under Section 80C, with a maximum limit of Rs 1.5 lakh. 

1. The interest earned on these accounts, compounded annually, is also exempt from taxation under Section 10 of the Income Tax Act. 
2. Additionally, the funds received upon maturity or withdrawal are also exempt from income tax. 

Documents Required for Opening a Sukanya Samriddhi Account with ICICI Bank

The following items need to be presented at the time of applying for a Sukanya Samriddhi Account 

• Birth Certificate of girl child
• SSY account opening form
• Government-approved proof of address for parent/guardian of girl child.