SMY - Sukanya Samridhi Yojna

Sukanya Samriddhi Accounts

Sukanya Samridhi Account Scheme is a small deposit scheme for girl child, as part of ‘”Beti Bachao ,Beti Padhao”’ campaign, which would fetch yearly interest rate of 9.1 per cent and provide income tax deduction Under section 80C of the Income Tax Act,1961
   

• Rate of interest 9.2% Per Annum(w.e.f 1-4-2015),calculated on yearly basis ,Yearly compounded. 

• Minimum INR. 1000/-and Maximum INR. 1,50,000/- in a financial year. Subsequent deposit in multiple of INR 100/- Deposits can be made in lump-sum No limit on number of deposits either in a month or in a Financial year.

• A legal Guardian/Natural Guardian can open account in the name of Girl Child.

• A guardian can open only one account in the name of one girl child and maximum two accounts in the name of two different Girl children. 

• Account can be opened up to age of 10 years only from the date of birth. For initial operations of Scheme, one year grace has been given. With the grace, Girl child who is born between 2.12.2003 &1.12.2004 can open account up to1.12.2015.

• If minimum Rs 1000/- is not deposited in a financial year, account will become discontinued and can be revived with a penalty of Rs 50/- per year with minimum amount required for deposit for that year. 

• 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.

• Account can be closed after completion of 21 years.

• If account is not closed after maturity, balance will continue to earn interest as specified for the scheme from time to time.

• Normal Premature closer will be allowed after completion of 18 years /provided that girl is married.

PPF - Public Provident Fund

Public Provident Fund (Amendment) Scheme, 2014

The PPF Scheme is introduced by the National Savings Organization in 1968 to mobilize small savings. 

The Scheme offers an investment platform with decent returns, it is also coupled with income tax benefits. 

Salient features of the Scheme are as follows:

• Eligibility :: Individuals in their own name as well as on behalf of a minor can open the account at any Branch. As per extant instructions, opening of PPF accounts in the name of Hindu Undivided Family is not permitted. Account can be opened by cash/cheque and In case of cheque, the date of realization of cheque in Govt. account shall be date of opening of account. 

• Rate of interest :: From 01.04.2014,  8.70% per annum (compounded yearly).

• Minimum and Maximum investment :: Minimum INR. 500/-  and Maximum INR. 1,50,000/- in a financial year.

• Deposit Method :: Deposits can be made in lump-sum or in 12 installments.

• An individual can open account with INR 100/- but has to deposit minimum of INR 500/- in a financial year and maximum INR 1,50,000/- 

• Joint account :: Joint account cannot be opened. 

• Nomination facility is available at the time of opening and also after opening of account. Account can be transferred from one post office to another. 

• The subscriber can open another account in the name of minors but subject to maximum investment limit by adding balance in all accounts. 

•  Maturity period is 15 years but the same can be extended within one year of maturity for further 5 years and so on. 

• Maturity value can be retained without extension and without further deposits also. 

• Premature closure is not allowed before 15 years. 

• Income Tax Benefit :: Deposits qualify for deduction from income under Sec. 80C of IT Act. Interest is completely tax-free. 

• Withdrawal is permissible every year from 7th financial year from the year of opening account.

• Loan facility available from 3rd financial year. 

• The PPF account can be opened in a Post Office or in any nationalised branch.

• Transfer of account :: The account can be transferred to other branches/ other banks or Post Offices and vice versa upon request by the subscriber. The service is free of charges.

Source :: http://www.indiapost.gov.in/ and https://www.sbi.co.in.