If you invest in small savings schemes, here’s some important news for you.
The Department of Economic Affairs, part of the Union Finance Ministry, has introduced new rules.
These rules affect the National Savings Scheme, Public Provident Fund (PPF), and Sukanya Samriddhi Account (SSA).
Let’s look at the changes for the Sukanya Samriddhi Account.
Updated Rules for Sukanya Samriddhi Account
Transfer of Guardianship:
If an SSA account is opened under the guardianship of grandparents who are not the legal guardians, the guardianship will be transferred to the natural guardian (the surviving parent) or the legal guardian as per the law.
Closure of Irregular Accounts:
If more than two SSA accounts are opened in a family, which is against the scheme’s guidelines, the extra accounts will be closed.
About the Sukanya Samriddhi Yojana
The Sukanya Samriddhi Yojana offers an interest rate of 8.2% on deposits and is tax-free under Section 80C.
You can invest a minimum of Rs 250 and up to Rs 1,50,000 in a financial year. If you do not deposit at least Rs 250 in a year, a penalty of Rs 50 will be charged.
Investment Period and Withdrawal
Investment Duration: You can deposit into the account for 14 years from its opening date. The account matures after 21 years.
However, if the account holder gets married before completing 21 years, the account will no longer be operable.
Partial Withdrawals: Partial withdrawals are allowed for higher education and marriage purposes.
These new rules aim to ensure better management and compliance with the scheme’s guidelines.
