Many individuals may be already investing in Sukanya Samriddhi Yojana (Account). However, are you aware of the few facts of Sukanya Samriddhi Yojana (Account) Rules? Let us discuss about these in detail.
Sukanya Samriddhi Yojana (Account) is a Small Savings Special Deposit Scheme for the girl child. This scheme is specially designed for girl’s higher education or marriage needs.
5 unknown facts about Sukanya Samriddhi Yojana (Account) Rules
# What if you deposit more than Rs.1,50,000 in Sukanya Samriddhi Yojana (Account) in a year?
We all know that the maximum yearly limit for Sukanya Samriddhi Yojana (Account) is Rs.1,50,000. Here, a year means financial year which starts from 1st April of the year to 31st March of the next year.
But what if you deposited more than Rs.1,50,000 unknowingly?
Banks or Post Offices usually not accept beyond Rs.1,50,000 per year. However, if due to any accounting error, they accepted also, then such amount which is more than Rs.1,50,000 will not earn any interest.
It will be kept idle with Government. However, an amount deposited in excess of an annual ceiling of Rs.1,50,000 may be withdrawn anytime by the depositor.
Hence, keep an eye on this maximum limit of investment per year. Otherwise, your money will not earn a single rupee of interest.
# Default Account will only earn savings account interest rate after 15 years
The yearly minimum deposit is prescribed as Rs.250. If you do not deposit this minimum yearly amount, then such accounts are considered as DEFAULT accounts. To make it active, you have to make a payment of Rs.50 per year as a penalty along with the such minimum specified amount for the year or years of default.
However, if such default account is not regulized within the 15 years from the date of account opening, then the whole deposit, including the deposits made prior to the date of default, will be eligible only for interest rate prescribed for Post Office Savings Bank at the time of its maturity.
If any amount credited wrongly by way of interest into an Account under default will be reverted to the Government account as soon as it comes to the notice of the Bank or the post office concerned.
Hence, never default your Sukanya Samriddhi Yojana (Account) beyond 15 years from the date of account opening.
However, this rule not applies to Sukanya Samriddhi Yojana (Account)s where the account turned default due to the death of the guardian of the account holder.
# No interest after maturity
We all know that the maturity of the Sukanya Samriddhi Yojana (Account) is 21 years from the date of opening of an account or if the girl gets married before completion of such 21 years (whichever is earlier).
However, many feel that Sukanya Samriddhi Yojana (Account) offers best interest rate and anyhow the maturity amount is completely tax-free.
However, you must also know the facts that no interest will be payable once the Account completes 21 Yrs from the date of its opening.
Hence, if you keep Sukanya Samriddhi Yojana (Account) active even after 21 years from the date of its opening, then your account will not earn a single rupee of interest. Because of this, it is always best to close it immediately once the account completes 21 years.
# Premature Withdrawal Rules
You can withdraw 50% of the accumulated amount in Sukanya Samriddhi Yojana (Account) can be withdrawn for girl’s higher education. The account’s balance at the end of the preceding financial year is used for the calculation.
Hence, for last FY the balance is Rs.10 lakh and your daughter is more than 18 years old, then you can withdraw Rs.5 lakh for her higher education.
However, such withdrawal will not be allowed unless the child attains the age of 18 years or has passed the tenth standard, whichever is earlier.
The amount of withdrawal is restricted to the ACTUAL demand of fee. Hence, you have to provide the proof regarding the fee details.
# Transfer of Sukanya Samriddhi Yojana (Account)
It is not mandatory for you to hold the account up to 21 years completion in the same Post Office or Bank. You can easily transfer your Sukanya Samriddhi Yojana (Account) anywhere in India. It may be from or to post offices and from or to Banks and between post office and Bank, at FREE of cost on furnishing of proof of shifting of residence of either the guardian or the Account holder and otherwise, on payment of a fees of one hundred rupees to the post office or the Bank to which the transfer is made.
Refer my earlier post in this regard “Transfer Sukanya Samriddhi Account from Post Office to Bank“.
Hope these unknown rules about Sukanya Samriddhi Yojana (Account) made you to be cautious while operating or depositing. Let me know if you have any doubts.
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