Bank of Baroda Sukanya Samriddhi Yojana Interest Rates 2024

Since 1908, the Bank of Baroda has been offering financial services to more than 150 million customers across 17 countries. The bank is authorised to offer various government schemes, including Sukanya Samriddhi Yojana. If you are a parent who is looking for an excellent way to invest in your daughter’s education, this blog on the Bank of Baroda Sukanya Samriddhi Yojana account can provide valuable insights.

What Is Bank of Baroda Sukanya Samriddhi Yojana?

Sukanya Samriddhi Yojana is a small deposit scheme that the Government of India launched on 02/12/2014 as a part of the Beti Bachao Beti Padhao Campaign. The purpose of this scheme is to provide exclusive help to girl children of India to meet their education and marriage expenses. The Sukanya Samriddhi Account at the Bank of Baroda comes with a favourable 8.2% interest rate along with tax benefits.

Features of Bank of Baroda Sukanya Samriddhi Account

Take a look at some of the salient features of the Bank of Baroda Sukanya Samriddhi Yojana Account before investing in your daughter’s future needs: 

1. The return on investment is subject to quarterly changes with an interest rate of 8.2%. 
2. At the end of each financial year, the amount of interest gets credited to the account. 
3. One can open an SSY account only on behalf of a girl child who is not more than 10 years old. 
4. One has to make a minimum deposit of ₹250 to keep the SSY account active. The maximum deposit one can make in a financial year is ₹1,50,000. 
5. 21 years is the tenure for an SSY account. The tenure can be reduced if the girl child gets married after 18 years of age. 
6. You can prematurely close a BOB SSY account only under special circumstances like the untimely demise of the account holder, death of the guardian, serious diseases of the account holder, and inability to continue with the payments. 

Benefits of Sukanya Samriddhi Account with Bank of Baroda

Here are some of the remarkable benefits of a Bank of Baroda Sukanya Samriddhi Yojana Account: 

1. It Helps to Cover Educational Expenses 

Once the beneficiary of an SSY account turns 18, the account holder can withdraw 50% of the amount to meet educational expenses. 

2. Minimal Amount is Required to Open an SSY Account 

Before 2018, the minimum amount to open an SSY account was ₹1,000. The limit has now been reduced to ₹250. This minimum amount to open an SSY account ensures that it stays affordable for most parents. 

3. Deposits for 15 years Only 

The deposit matures 21 years from the account opening date. A parent only needs to contribute for 15 years and he/she can continue to earn interest from the deposit.  

4. Tax Benefits 

The amount an account holder will receive at maturity including the interest earned from the deposit is tax-free.   

5. Attractive Interest Rates 

Bank of Baroda Sukanya Samriddhi Yojana interest rate is set at 8.2%, which is very competitive for savings schemes. 

Eligibility Criteria to Open Bank of Baroda SSY Account

Here are the eligibility criteria to open a BOB SSY account: 

1. A parent of a girl child can operate a Bank of Baroda Sukanya Samriddhi Account after the birth of the child until she turns 10. 
2. A parent can create an SSY account on behalf of the beneficiary who must be an Indian resident citizen. 

Documents Required to Open a Bank of Baroda Sukanya Samriddhi Yojana 

You can refer to this list of documents while preparing to apply for Sukanya Samriddhi Yojana: 

1. Stamp sized photos
2. ID proof of the depositor 
3. Residential proof of depositor 
4. Birth certificate of girl child 
5. Filled-up SSY registration form 
6. Aadhar Card 
7. PAN Card/Form 60  

Stepwise Process to Open an SSY Account

The process of opening a Bank of Baroda Sukanya Samriddhi Account is simple. Follow this stepwise process to open an SSY account: 

• Step 1: Visit your nearest Bank of Baroda branch and get an SSY account opening form. 
• Step 2: Fill out the form and submit it along with the required documents. 
• Step 3: Deposit a minimum token amount. 

Once your SSY account is active, you can make deposits by cash, cheque, or demand draft. 

Bank of Baroda Sukanya Samriddhi Yojana Formula and Calculation

You can use the formula below to calculate the interest and the maturity value of your SSY investment. 

A = P (1 + r/n) ^ nt 

Here, 

• A denotes maturity value
• P denotes the principal amount 
• r denotes the rate of interest 
• n denotes the number of time interest compounds in a year 
• t is the number of years 

Let’s say that a parent deposits ₹15,000 per year for 15 years. Here, n is 1 (as interest compounds annually) and r is 8.2%. With this formula, you can calculate the compound interest. 

A = 15000 (1 + 8.2/1) ^ 1 * 15 = ₹6,73,453 

As the total investment is ₹2,25,000, his/her interest income will be ₹(6,73,453-2,25,000) = ₹4,48,453.

How to Use an SSY Calculator?

Calculating the maturity amount with a formula can produce inaccurate results. However, SSY calculators online can provide you with accurate results instantly. Follow these steps to use one right now: 

• Step 1: Navigate to any online SSY calculator. 
• Step 2: Enter the deposit amount you have decided to invest each year. Enter other details such as interest rate and starting year if applicable. 

The calculator will automatically show you the interest earned and maturity amount. 

Tax Benefits on Bank of Baroda SSY

Along with other advantages, BOB SSY offers the following tax benefits: 

1. The amount you receive at maturity is tax-free. 
2. The interest, earned on the deposit, is compounded annually and is tax-free. 
3. Under section 80C of the Income Tax Act, deposits up to ₹1,50,000 are eligible for a tax deduction.  

Bank of Baroda Sukanya Samriddhi Yojana Withdrawal Rules

Take a look at the withdrawal and premature closure rules before you start investing in SSY.

Withdrawal Rules: 

1. One can withdraw up to 50% of the amount at the end of a financial year preceding the year of withdrawal application. 
2. One can only withdraw for the purpose of education after the account holder turns 18 or has passed the 10th standard. 

Premature Closure: 

These are the special conditions for which one can close SSY prematurely: 

1. Inability to continue with the payments 
2. The beneficiary attains the legal age of 18 and enters a wedlock. 
3. After 5 years of account maintenance, one can close it due to medical emergencies or the death of the guardian. 

How to Withdraw Sukanya Samriddhi Yojana in Bank of Baroda?

You can claim or withdraw your Sukanya Samriddhi Yojana investment from the Bank of Baroda when it matures 21 years from the date of account opening. To withdraw the corpus you have to fill up Form-4 and submit it along with the necessary documents. 

Here is the list of documents you will need to attract with the form: 

1. Sukanya Samriddhi Yojana Account withdrawal application 
2. Proof of age 
3. Proof of identity 
4. Proof of residence and citizen  

How Many Accounts Can be Opened in Sukanya Samriddhi Yojana?

An individual can open only 2 accounts, each for 2 girl children. There is a provision for opening 3 accounts in exceptional cases where twins or triplets are the first or second children in the family. In such cases, a parent has to provide an affidavit along with the birth certificates to open accounts in Sukanya Samriddhi Yojana.  

Difference Between Bank of Baroda PPF and SSY

PPF and SSY both are savings schemes, each designed with distinct features and purposes. To understand the difference between these two, take a look at the table below: 

Bank of Baroda Sukanya Samriddhi Yojana Form

To obtain the Sukanya Samriddhi Yojana form from the Bank of Baroda, you can either visit the official website of the bank or visit a nearby branch. The form requires applicants to provide the following information: 

1. Name and date of birth of the depositor 
2. Name and date of birth of guardian 
3. Aadhaar number of guardian 
4. Permanent Account Number (PAN) of guardian 
5. Present and permanent address 
6. Contact details 
7. Type of account 
8. Identity proof 
9. Address proof 

What is the Minimum Amount Required to Open an Account Under Sukanya Samriddhi Yojana?

The minimum amount you have to pay to open an account under Sukanya Samriddhi Yojana scheme is ₹250. Afterwards, you can continue deposits in multiples of ₹50. 

What is the Duration of the Bank of Baroda Sukanya Samriddhi Yojana Account?

The duration of the Bank of Baroda Sukanya Samriddhi Yojana Account is 21 years. During this period, you are required to continue making deposits for the first 15 years.

Final Word

Hopefully, now you can easily proceed to apply for a Bank of Baroda Sukanya Samriddhi Yojana Account, unlocking its associated benefits and securing your girl child’s future. Consistent investment in this scheme can accumulate a substantial amount at maturity, which can be utilised for higher education and marriage expenses.

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Disclaimer

This article is solely for educational purposes. Stable Money doesn't take any responsibility for the information or claims made in the blog.