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    Minimum investment limits lowered in Sukanya Samriddhi Yojana

    Synopsis

    A depositor can open and operate only one account in the name of the girl child under the Sukanya Samriddhi Account Rules, 2016

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    The interest rate spread that the Sukanya Samriddhi Yojana enjoys over the G-sec rate of comparable maturity is 75 basis points.
    The minimum amount required to open the Sukanya Samriddhi Yojana (SSY), a government backed scheme targeted towards a girl child and her financial needs, has been reduced.

    According to PTI, the Sukanya Samriddhi Account can now be opened with a minimum deposit of Rs 250 which was Rs 1,000 earlier. Also, in subsequent years, the minimum of Rs 250 needs to be deposited each year as against Rs 1,000 earlier. A maximum of Rs 1.5 lakh can be deposited during the ongoing financial year.

    How to open a SSY account
    A Sukanya Samriddhi Account can be opened in any authorised post office branch or branches of commercial banks. Generally, you can open a Sukanya Samriddhi Yojana in banks where you can open a Public Provident Fund (PPF) account.

    The account opened any time after the birth of a girl till she turns 10, will remain operative for 21 years from the date of its opening or till the marriage of the girl after she turns 18.

    To know about important watch outs before investing in it, click here.

    Operating the account
    A depositor can open and operate only one account in the name of the girl child under the Sukanya Samriddhi Account Rules, 2016. To meet the requirement of her higher education expenses, partial withdrawal of up to 50 per cent of the balance is allowed after she turns 18.One can't open two accounts for one girl. Deposits in the account can be made till the completion of 15 years, from the date of the opening of the account. For a 9-year-old, deposits have to continue till the child turns 24. Between the ages of 24 and 30 (when the account matures), the account keeps earning interest on the balance.

    Interest rate earned
    The government fixes interest rates on a quarterly basis based on the G-sec yields. The interest rate spread that the SSY enjoys over the G-sec rate of comparable maturity is 75 basis points.

    The interest rate since its launch is as follows:
    From April 1, 2014: 9.1%
    From April 1, 2015: 9.2%
    From April 1, 2016 -June 30, 2016: 8.6%
    From July 1, 2016 -September 30, 2016: 8.6%
    From October 1, 2016-December 31, 2016: 8.5%
    From July 1, 2017- December 31, 2017: 8.3%
    From January 1, 2018 - March 31, 2018 : 8.1%
    From April 1, 2018 -June 30, 2018: 8.1%
    From July 1, 2018 -September 30, 2018: 8.1%

    Interest at the rate, to be notified by the government, compounded yearly will be credited to the account. The interest will be calculated for the calendar month on the lowest balance in an account on the deposits made between the close of the 10th day and the end of the month.

    To know more about SSY, click here and to know How to open a Sukanya Samriddhi Account, click here.
    ( Originally published on Jul 23, 2018 )

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