India Post, under the Department of Posts, offers a range of small savings schemes such as Sukanya Samriddhi Yojana. The interest rates on small savings schemes such as Sukanya Samriddhi Yojana are reviewed on a quarterly basis. Focussed on the girl child, Sukanya Samriddhi Scheme offers an interest rate of 8.5 per cent, and the interest is compounded on a yearly basis, according to India Post's website - indiapost.gov.in. Besides postal services, India Post - which has a network of more than 1.5 lakh post offices across the country - offers a variety of banking services.
Here are key things to know about India Post's Sukanya Samriddhi Account:
1. Who can open a Sukanya Samriddhi Yojana account? Sukanya Samriddhi Yojana Account can be opened by the legal or natural guardian of the girl child of up to 10 years of age with a minimum investment of Rs 1,000 and maximum of Rs 1.5 lakh in a financial year. Subsequent deposits in multiples of Rs 100 and there are no limits on the number of deposit a member can do in a month of a financial year.
2. How many accounts can be opened? An individual is allowed to open only one account in the name of one girl child and maximum two accounts in the name of two different girl children.
3. Withdrawal rules: Partial withdrawal up to 50 per cent of the balance standing at the end of the preceding financial year can be taken after account holder attains age of 18 years and account can be closed after completion of 21 years. Normal premature closure is allowed after completion of 18 years if thee girl is married.
4. Minimum investment required: If minimum investment of Rs 1,000 is not made in a financial year, the account will be discontinued and can be revived with a penalty of Rs 50 per year with minimum amount required for deposit for that year, according to the India Post website.
5. Income tax benefit: Investments made for Sukanya Samriddhi Yojana Account and maturity amount are fully exempted from tax under section 80C of the Income Tax Act.