If you find the best investment plan for your child’s better future, you are in the right way to find it. India Post offers the best child plan in India which is design for your child’s Higher Education and Marriage. Sukanya Samriddhi Account(SSA) is specially introduced for the girl child in India.
According to the India Post website, the present interest of SSA is 8.4%, which calculate in yearly basis and yearly compounded.
Salient Feature of Sukanya Samriddhi Account(SSA):-
- A legal Guardian/Natural Guardian can open an account in the name of Girl Child.
- A guardian can open only one account in the name of one girl child and a maximum of two accounts in the name of two different Girl children.
- The account can be opened up to the age of 0 to 10 years only from the date of birth.
- The account can be open with a minimum deposited amount of Rs. 250/- and minimum 1000/- rupees in a year.
- If minimum Rs 1000/- is not deposited in a financial year, the account will become discontinued and can be revived with a penalty of Rs 50/- per year with the minimum amount required for deposit for that year.
- Limit of minimum and maximum deposit can be allotted 1,000/- to 1,50,000/- per year. Subsequent deposit in multiple of 100.
- Minimum invest period of 14 years. One can be deposited in her account for up to 14 years. Thereafter no subscription will be accepted.
- Partial withdrawal, maximum up to 50% of balance standing at the end of the preceding financial year can be taken after Account holder’s attaining age of 18 years.
- The account can be closed after completion of 21 years.
- Normal Premature closure will be allowed after completion of 18 years/provided that girl is married.
Limit of Contribution of Sukanya Samriddhi Account(SSA):-
One can contribute to her account for up to 14 years. Minimum INR. 1000/-and Maximum INR. 1,50,000/- in a financial year. Subsequent deposit in multiples of INR 100/- can be made in a lump-sum deposit. No limit on a number of deposits either in a month or in a Financial year.
Rate of Interest of Sukanya Samriddhi Account(SSA):-
The present rate of interest is 8.4% Per Annum with effect from 1-07-2019, The interest calculated on a yearly basis and Yearly compounded. This interest rate is changeable. In every three month department review its interest rate and fixed for next three month.
Maturity Value Sukanya Samriddhi Account(SSA):-
If someone invests 2,000/- rupees on a monthly basis. After a 14th year, her total contribution will be 3,36,000/- for the same interest rate customer will get interested 7,79,379 after 21 years from the opening of the account and her Maturity value will be (3,36,000+7,79,379)=11,15,379/- I think there is no such scheme in India, in any financial entity. Moreover, this is a safe and secure investment with the grunted by central government So, there is no doubt that it’s the best child plan in India.
Read More :
- Best Insurance Plan
- Revised Interest Rate Of POSB Scheme
- Post Office Saving Schemes, To Save Income Tax
- Benefits Of Postal Life Insurance With India Post
Why Sukanya Samriddhi Account(SSA) is Best Child Plan:-
Here is the 10 reason why Sukanya Samriddhi Account(SSA) is the Best Child Plan in India?
- Exclusively designed for your child.
- It’s the Central Government Small Saving Scheme.
- Interest rate always high.
- Account period of 21 years.
- Contribution time 14 Years from the opening of the account.
- After 14 years no contribution needed.
- Premature closure facility available (if needed).
- After 18 years of age 50% can be withdrawn able for higher education and marriage of girl child (One withdrawal can be acceptable).
- The interest calculated on yearly basis & Yearly compounded which is best for quick growth of your fund.
- Safe and secure investment by the Central Government.
Important watchouts Before You Invest – Sukanya Samriddhi Account(SSA):
Sukanya Samriddhi Yojana (SSY) is targeted towards a girl child and her financial needs such as education and marriage. However, as the exact age at which she would require the funds is uncertain, the scheme tries to be flexible. The investors, on the other hand, need to keep in mind five important years or time spans before taking the plunge in SSY. Consider, for instance, the girl child’s age, and the time left for her education and marriage.
Opening an account (0-10 years)
An SSY account can only be opened in the name of a girl child (beneficiary) below 10 years, as on the date of the opening of the account. The date of birth proof is, therefore, essential. The rules allow for the opening of a maximum of two accounts for two girls in a family. One can’t open two accounts for one girl. The girl child’s age is very important to find out the duration of the scheme. Here’s why:
The request for the first premature closure of an SSY account can be put forward after the completion of five years of the account opening. That too, as per the rules, on extreme compassionate grounds such as medical support in life-threatening diseases. Still, if the account has to be closed for another reason, it will be allowed, but the entire deposit will only get interested in a Post Office Savings Bank account.
When the beneficiary, i.e., the girl child crosses the age of 10, she can operate the account on her own. She can make any future contributions to her own account. The parents, too, can continue to deposit in the same account. 14 years to open an SSY account, a minimum initial deposit of Rs 250/- is required.
Thereafter, a minimum of Rs 1,000 up to a maximum of Rs 1.5 lakh can be deposited in the account annually. To keep the account active, deposits need to be made only for the initial 14 years. For a 9-year-old, deposits have to continue until the child turns 24. Between ages 24 and 30 (when the account matures), the account keeps earning interest on the balance.
SSY is a long-term investment scheme. The partial and full withdrawal window is sacrosanct subject to applications made to foreclose the account prematurely.18 yearsThe next window for withdrawals is allowed when the girl turns 18. And the rules make it clear that the funds are for her needs and not used for any other purpose.
A maximum of 50 per cent of the account balance of the preceding year may be withdrawn for the purpose of higher education of the girl. For this, not just a written application, but a documentary proof in the form of a confirmed admission offer in an educational institution or a fee slip from such institution clarifying such financial requirement is required. Further, the withdrawal amount will be restricted to the actual demand of fee and other charges required at the time of admission as shown in the offer of admission or the relevant fee slip issued by the institution.
21 years irrespective of the age, the SSY account will run for 21 years from the date of its opening. So if the girl child’s age is 9, the scheme will mature when she turns 30.
The rules, however, permit final closure anytime before 21 years if the parent files an application for such premature closure for the purpose of her marriage and confirms through an affidavit that the applicant is not below 18 years on the date of marriage. At times, this could be a roadblock as the closure is subject to conditions as seen above. The attractiveness carries the highest tax-free return with a sovereign guarantee and comes with the exempt-exempt-exempt (EEE) status.
The annual deposit (contributions) qualifies for Section 80C benefit and the maturity benefits are non-taxable. SSY can be opened in a post office or a bank. One can also make deposits through electronic means, i.e., e-transfer to the concerned post office or bank if either has access to the core banking facility. An alternative investment is a dedicated scheme for a girl child’s needs.