Axis Bank Sukanya Samriddhi Yojana Interest Rates 2024

Axis Bank is an esteemed banking partner in India that extends its services to more than a million citizens each month. At present, you may opt for Sukanya Samriddhi Yojana Axis Bank to strengthen the financial security of your girl child. Keep reading this blog to find out more information regarding this scheme. 

What is Axis Bank Sukanya Samriddhi Yojana?

The Sukanya Samriddhi Yojana in Axis Bank is one of the Central Government-backed savings schemes that aims to secure the future of daughters. It is an easy-to-manage low-cost investment avenue that yields a considerable interest of around 8% per annum. However, to successfully avail its high-yielding interest you have to apply for this scheme before the girl child attains 10 years of age.  

Features of Axis Bank Sukanya Samriddhi Account

Hereby you can check some key features of the Sukanya Samriddhi Yojana Axis Bank:

1. The minimum contribution in a year should be ₹250. Also, you are eligible to contribute up to ₹1.5 lakhs in a single fiscal year.
2. Your SSY account will reach maturity after 21 years from the date of opening. Till then you must register at least one deposit every year to keep the account active.
3. You can avail several modes of payment such as by cash, cheques/demand drafts or even via internet banking. 
4. All deposits on your girlchild’s behalf will be subject to tax deductions under Section 80C of the Income Tax Act, 1961. Moreover, the interest payouts are also tax-free according to the Finance Bill 2015-16. 
5. Interest rates vary quarterly and thus you need to track prior government notifications through the official website of Axis Bank. The interests get credited to your account at the end of each quarter and the corpus is compounded yearly.
6. At present, the interest is running at 8%.
7. All transactions must be initiated and controlled by the natural/legal guardian of a girl child till she reaches 10 years of age.
8. Some noteworthy features include zero service charges on any transaction, a free passbook and account transfer facilities. 
9. Withdrawals from an Axis Bank SSY account are only allowed once the account holder turns more than 18 years old. However, the withdrawal amount cannot cross 50% of the accrued sum.
10. Premature account closure is only allowed in the event of the demise of the account holder. 

Benefits of Sukanya Samriddhi Account with Axis Bank

You can enjoy each of the following advantages by opting for Sukanya Samriddhi Yojana in Axis Bank:

1. Low Deposit Amount

While opening the Sukanya Samriddhi Yojana account, you must deposit a minimum amount of ₹250. Thus, it is easily manageable for most families. Also, as only one deposit annually is sufficient to keep your account active, the SSY scheme results in no financial toll in the long run.

2. Tax Exemption

All your contributions made to an SSY account are eligible for tax deduction as per Section 80C of the IT Act. The withdrawable corpus and gross applicable interest are also tax-free. Therefore, your girl child can utilise the full amount however she wants.

3. Premature Withdrawal 

If your girl child gives consent to withdraw the SSY investments for her higher studies or marriage after turning 18 years old, then up to 50% of the accrued sum can be redeemed. 

4. Surplus Interest

A Sukanya Samriddhi Yojana account will continue attracting interest payouts even after its maturity as long as the account holder is not officially closing it. During the extended period, you can choose not to make further contributions. 

5. Flexible Deposit Options

You can add money to the concerned SSY account in several ways – cash/demand drafts/cheques or even via Axis Bank internet banking.

Eligibility Criteria to Open Axis Bank SSY Account

In the upcoming section, you can read about the eligibility credentials for opening an SSY account:

1. The account holder of a Sukanya Samriddhi Yojana Axis Bank must be a girl child. 
2. At the time of account opening, the child’s age should not exceed 10 years. Also, one girl cannot hold more than one SSY account.
3. A legal/natural guardian is only permitted to open an Axis Bank Sukanya Samriddhi Yojana account for a maximum of two of their girl children.
4. More than two account openings are granted only when twin girls are born as a second birth or when three girl children take birth simultaneously. 
5. The account holder must reside in India from the time of account opening till its maturity date. Additionally, they must be an Indian citizen by birth. 

Who Can Open an SSY Account?

A parent or legal guardian of any girl child aged less than 10 years can apply for a Sukanya Samriddhi Yojana Axis Bank. However, a girl can have only one SSY account under her name. 

Documents Required to Open a Sukanya Samriddhi Yojana Bank

Please ensure to present the following documents while you are applying for an SSY account with Axis Bank:

1. Axis Bank SSY account opening form
2. Valid birth certificate of the account holder or girl child displaying her date of birth
3. Passport-size photo of the legal/natural guardian 
4. A set of KYC documents like the guardian’s PAN card, driving licence, passport and a card issued by the Unique Identification Authority of India (UIDAI) in a prescribed manner

How to Open a Sukanya Samriddhi Yojana Online Account in Axis Bank?

As of now, you cannot apply for a Sukanya Samriddhi Yojana Axis Bank online. 

Stepwise Process to Open an SSY Account

You can open an Axis Bank SSY account by executing these steps:

• Step 1: Visit the nearest Axis Bank branch and collect the Sukanya Samriddhi Yojana account opening form.
• Step 2: Duly fill it out and submit the form to a designated bank official.
• Step 3: Submit your address and ID proof documents along with the girlchild’s birth certificate photocopy.

Once the account is activated, you will receive an official opening date, account number, and details about the initial transaction via SMS. 

Note: The bank will ask you to submit the passbook at the time of account maturity. Also, you may have to provide it every time while depositing or receiving interest. 

Axis Bank Sukanya Samriddhi Yojana Formula and Calculation

The Sukanya Samriddhi Yojana calculator applies the following formula to get the return amount:

A = P (1 + r/n) ^ nt

Here, A denotes maturity value while P, r, n and t stand for the invested amount, interest rate, frequency of compounding and tenure respectively. 

For calculating, you must consider the minimum tenure as 15 years. This metric can be up to 21 years if the account holder wishes not to redeem the investment. So, the final amount varies drastically based on the time you wish to remain invested.

How to Use an Axis Bank SSY Calculator?

Using an online calculator to determine the returns is very easy as the Axis Bank Sukanya Samriddhi Yojana interest rate already remains pre-set. All you have to do is execute these steps:

• Step 1: Open the online SSY calculator present on the official website of Axis Bank.
• Step 2: Enter the monthly deposit amount and mention the number of deposits you are planning to complete in a year.
• Step 3: Take note of the maturity amount, total interest earned and the principal that you are willing to contribute.

Tax Benefits on Axis Bank SSY

Apart from building a financially secure future for daughters, the Axis Bank SSY fits well in an individual’s investment portfolio, especially when they have tax-saving objectives. It is because the Samriddhi Yojana belongs to the exempt-exempt-exempt (EEE) category.

According to this EEE taxation status:

1. All of your SSY investments come under Section 80C of the Income Tax Act. Thus, you become eligible for income tax deductions of up to ₹1.5 lakhs per year on investing in this scheme.
2. The interest earnings are also not subjected to any form of taxation.
3. Finally, the maturity amount is also entirely tax-exempt. 

Axis Bank Sukanya Samriddhi Yojana Withdrawal Rules

These are some standard protocols you need to keep in mind while withdrawing an amount from Sukanya Samriddhi Yojana Axis Bank:

1. Any claim for balance redemption will be declined as long as the account holder is below 18 years of age.
2. Considering the girl child has attained 18 years of age but the account hasn’t reached maturity status yet, then withdrawals can be done for up to 50% of the accrued sum.
3. Axis Bank will only allow a premature account closure if the account holder unfortunately dies. In that case, the guardian receives the entire principal along with the accrued interest.
4. There may be certain exceptions involving a premature account closure where the accounts officer can allow early withdrawals if a family is struggling financially.
5. Although the maturity date arrives 21 years after the account opening date, still if the girl marries before that then also the bank will close the account. For such cases, the daughter must submit an affidavit acknowledging that her age has already crossed 18 years.

How to Withdraw Sukanya Samriddhi Yojana in Axis Bank?

Follow these pointers for a hassle-free withdrawal experience:

1. Collect the SSY withdrawal form (Form 4), duly fill it and submit that along with the account passbook to your nearest Axis Bank.
2. For partial withdrawals (after your daughter has turned 18), you must submit all the required supporting documents.

Note: Certain conditions like the account holder’s passing, or the death of the guardian can prematurely end a SSY account. However, for this effect, 5 years must have passed since the date of account opening.

How Many Accounts Can be Opened in Sukanya Samriddhi Yojana?

A girlchild is eligible to inherit the returns of only one Sukanya Samriddhi Yojana account throughout her lifetime. A maximum of two girl children from a family can have this account opened in their name. However, in the exceptional case of the birth of twins or triplets, more than two accounts can be opened in the family.

Difference between Axis Bank PPF and SSY

Consider referring to the table below to understand the major differences between a PPF and an SSY scheme.

How to Check Sukanya Samriddhi Yojana Account Balance in Axis Bank?

Ensure to follow these steps to check the updated SSY account balance:

• Step 1: Visit the nearest Axis Bank branch.
• Step 2: Ask a designated official to update the account passbook. This service does not require any additional charges.

Axis Bank Sukanya Samriddhi Yojana Form

All applicants need to download Form SSA-1 and carefully fill it out to open a Sukanya Samriddhi Yojana Axis Bank account. After addressing the details, you must submit it to the home branch along with the initial deposit to start the account.

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

You can start a Sukanya Samriddhi Yojana account by depositing a minimum of ₹250. Following this, you can deposit any number of times throughout the year but the deposits must be in multiples of ₹50.

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

A Sukanya Samriddhi Yojana Axis Bank account matures when 21 years pass following the day on which the initial deposit was made. 

Final Word

As you have understood by now, the Sukanya Samriddhi Yojana Axis Bank is a reliable scheme to grow wealth for your daughter’s future. The account handling charges are also negligible and in turn, provide considerable tax benefits until the maturity date. 

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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.