What is current interest rate on Sukanya Samriddhi Yojana account?
The government's Sukanya Samriddhi Yojana is a small deposit programme that is designed specifically for female children and was introduced as a part of the Beti Bachao Beti Padhao Campaign. The current interest rate on Sukanya Samriddhi account is 7.6%.The plan aims to cover a girl child's costs for schooling and marriage.Sukanya Samriddhi account holders anticipate an increase in the SSY interest rate in due to recent repo rate increases by the Reserve Bank of India and rising inflation.
A deposit under the programme can be made for as little as Rs. 250 or as much as Rs. 1,50,000. Some advantages of opening an account under the yojana include a high interest rate, tax savings, a lock-in period, payment of the account balance and interest rate to the policyholder when the account achieves maturity age, and interest payments long after the scheme matures.
Withdrawal of SSY
Withdrawal from account is permitted after a girl kid reaches the age of 18 or has completed the tenth grade.
Withdrawals are permitted up to 50% of the sum available at the end of the prior fiscal year.
Wthdrawal may be made in one lump sum or in installments, not exceeding one per year, for a maximum of five years, subject to the ceiling specified and subject to actual requirement of fee/other charges.
Premature closure
According to the India Post website, here are conditions when you can prematurely close SSY.
Account may be prematurely closed after 5 years of account opening on the following conditions : -
On the death of account holder. (from date of death to date of payment PO Savings Account interest rate will be applicable). On extreme compassionate grounds. (i) Life threatening decease of a/c holder.
(ii) Death of the guardian by whom account operated.
(iii) Complete documentation and application required for such closure.
(vi) For premature closure of account submit prescribed application form along with pass book at concerned Post Office.
How is interest calculated
For the calendar month, interest is computed on the lowest balance in the account between the close of the fifth day and the end of the month. According to the India Post website, “The interest shall be credited to the account at the end of each financial year and any amount of interest in fraction of a rupee shall be rounded off to the nearest rupee and for this purpose any amount of fifty paisa or more shall be treated as one rupee and any amount less than fifty paisa shall be ignored.”
Interest will be credited at the end of the financial year regardless of the change in account office resulting from the transfer of the account during the financial year."
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This story originally appeared on: India Times - Author:Faqs of Insurances
