The scheme's success largely stems from its tax benefits. You can claim up to ₹1.5 lakh under Section 80C of the IT Act. Plus, the interest earned and the maturity amount are tax-free, enhancing the appeal of Sovereign Gold Bonds.
The Sukanya Samriddhi Scheme provides an impressive annual interest rate of 8.2%, higher than many small savings schemes. The interest compounds annually and is credited monthly, typically exceeding the average ten-year government yield, making it a highly appealing investment choice.
The account matures after 21 years from the date of opening or upon the child's marriage, whichever occurs first. The account is closed upon the child's marriage. However, one premature withdrawal is allowed at age 18 to support higher education, limited to 50% of the balance as of the end of the previous financial year. Deposits can be made for up to 14 years from the account's opening date.
Sukanya Samriddhi Scheme continues to earn interest even after the account matures, as long as the account holder chooses not to close it. Interest accrues after maturity until the account is officially closed.
The Sukanya Samriddhi Scheme offers flexible account management. You can start with an initial deposit of ₹250 (previously ₹1,000) and add funds in multiples of ₹100. In order to keep the account active, a minimum of ₹250 must be deposited each financial year. Once the girl reaches the age of 10, she can manage the account herself.
Parents cannot withdraw funds for personal use; the account balance and accrued interest are disbursed to the child upon maturity, providing her with financial security.
The Sukanya Samriddhi Scheme aims to support parents in securing their daughter's future, ensuring she achieves financial independence and is not seen as a burden. With its attractive tax benefits and high interest rate, the scheme encourages parents to invest for their child's long-term benefit.
Applying for the Sukanya Samriddhi scheme is a very simple process and can be done online. You will be required to fill up the account opening form, submit the necessary documents with a photo, and deposit a minimum amount of ₹250. Documents include the child's birth certificate, a photo ID, address proof of the parents, and a photograph of the child and the parents. After the account is opened, you can make cash, demand drafts, or cheque deposits.
Investing in the Sukanya Samriddhi Scheme helps you ensure a bright future for your girl child. It will enable you to meet her major future expenses such as higher education and marriage – plus it offers tax benefits as well.
To open an HDFC Bank Sukanya Samriddhi Scheme for your loved one, contact your local HDFC Bank branch today.