SUKANYA SAMRIDDHI YOJNA

SUKANYA SAMRIDDHI YOJNA

Modi government has launched campaign ‘Beti Bachao Beti Padao’. Under this scheme the government has launched Sukanya Samriddhi Yojna Account. It is a small saving deposit scheme for the girl child to support her education and marriage. This account can be opened in the name of girl child from the time she is born till she becomes 10 year old. It can be opened in a post office or any public sector bank.

It can be opened with a minimum amount of Rs 1000 and maximum of Rs 1.5 lakh. The money can be deposited till 14 year from the date of account opening by parents or guardians. The interest rate will be decided by government every year. For FY 2014-15, the interest rate is 9.1% and it is compounded annually. The interest will be tax free. You can avail section 80C tax benefit, the amount deposit in this account till Rs 1.5 lakh in each financial year.

The account will mature after 21 years from the date of account opening. 50% fund can be withdrawn after the girl turns 18 year old. The premature closure of account is allowed in the case of death of girl child. If you do not deposit any amount in a whole year, a penalty of Rs 50 charged. One family can open only 2 accounts even if there are more than 2 girl child in family. Only 1 account per girl child is allowed. You cannot operate account online.

This scheme is better than post office schemes and fix deposit schemes or RD schemes. It will give the same tax benefit as PPF. It is good plan for your child because at least the government will try to meet the inflation rate at least. Interest rate will be announced every year. It is illiquid investment so invest in planned manner. Birth certificate of girl child, address proof and photo identity proof of girl child and parents/ guardian are required documents for opening the account.

It is less risky investment option and it will not give return like mutual funds or share market. As an asset allocation plan for debt investment, one can consider it. In my personal opinion, if you invest for 21 year then it is not much good option. A good mutual fund will give much better return if you compare between mutual fund and this scheme. I have still not opened this account for my daughter as I already invest in mutual fund.

If you have doubt about investment product and want more information regarding investment or you need investment services, feel free to ask us. We also conduct the seminar on investment and financial planning. If you are interested for conducting seminar in your city, just drop the mail.

Warm regards,

Arvind Trivedi

Certified Financial Planner

arvind.trivedi79@gmail.com

Schemes offered by Post Office

Post Office Schemes

The telegram has ended recently and the use of postal stamp has got reduced in recent time in our country. The use of Indian post has got reduced in urban area. Now, the people prefer courier to deliver documents. The increasing use of email, scan documents are also reason behind the shrinking use of Indian Post. However, it is still significant in rural India and may play important role in future due ot its wide network.

The Indian Post has also applied for banking license recently. It has strong and wide bandwidth across the whole India to serve the people banking service with 1.55 lakh branches. Its saving schemes are still popular among all type of investors. Today, we will discuss about all the schemes available in post office. The following schemes available with post office:

·         Saving Account

·         Recurring Deposit

·         Time Deposit

·         Monthly Income Scheme

·         Public Provident Fund (PPF)

·         Senior Citizen’s Saving Scheme

·         National Saving Certificates (NSC)

·         Other Financial Services

(A) Saving Account: It can be open with minimum balance amount of Rs 50 without cheque facility. If you avail cheque facility then you have to maintain Rs 500 minimum balance. You will get 4% interest on the balance amount in your account.

(B)  Recurring Deposit: It offers 8.3% interest rate with tenure 5 year. The tenure may be extended up to 5 year as per investor willingness at the time of maturity. The interest credit on the 15 days balance. For this deposit you need not open saving account with post office.

(C) Time Deposit: It is eligible for section 80(c) benefit. You can choose deposit term between 1 to 5 years and can foreclosure after one year. It offers interest rate between 8.2% to 8.4%. Minors above 10 year also operate this type of account.

(D)  Monthly Income Scheme: The minimum requirement for this scheme is Rs 1500 and maximum limit Rs 4.5 lakh. Its tenure is 5 year although foreclosure allowed with penalty. It offers 8.4% interest on your deposit and interest credited in your post office saving bank account.

(E) Public Provident Fund (PPF): It is eligible for section 80(C) tax benefit. Its maturity amount is also tax free. The minimum deposit required is Rs 500 and its maturity period is 15 year. Withdrawal allowed after 6 year with some term and condition. The term may be extended at the time of maturity for 5 year in a year. The interest rate for current year is 8.7% and it will decide by every year by government.

(F)  Senior’s Citizen’s Saving Scheme: The minimum age required to open this account is 60 year if opt VRS then it would be 55 year. It is eligible for Section 80(C) tax benefit. The maximum amount is allowed for deposit is 15 lakh per person in this scheme. Its tenure is 5 year. The interest rate offered in this scheme is 9.2% and quarterly credited in your account. Foreclosure is also allowed with penalty and it can be extended by 3 year at the time of maturity.

(G) National Saving Scheme (NSC): The minimum Rs 100 required for this investment. Its tenure is between 5 – 10 year. It is eligible for section 80(c) tax benefit and interest earned every year treated as reinvestment and eligible for section 80(C) also. The interest rate is offered in this scheme 8.5% to 8.8% depend on the maturity.

(H)  Other Financial Services: National Pension Scheme (NPS), money transfer, life insurance services is also offered by Indian post. Postal life insurance is only available for employee of central govt, state govt, public sector and semi govt organisations.

For more detail about any other query related investment, you can contact me through my email.

Warm regards,

Arvind Trivedi

Certified Financial Planner

arvind.trivedi79@gmail.com