People changing locations find it hard to continue their accounts in a different location. Even though the process of transferring the account is simple, account holders need to visit both the old and the new post office or bank branch to transfer their accounts.
To benefit girl children, the government in 2015 introduced the Sukanya Samriddhi Scheme. This plan offers attractive options for girl children, hence, it became popular in India. The account can be opened by either parents or legal guardians on behalf of a girl child. Up to a maximum of 2 daughters aged below 10, can invest in this scheme in any post offices or authorized banks. The account can also be opened for an adopted girl child.
SSY currently (as on 1st April 2016) offers an interest rate of 8.60 per cent per annum. The interest rate is also revised on a quarterly basis. The interest earned under SSY is tax-free, and under Section 80C the investment also earns tax rebate. Rs 1.5 lakh and Rs 1,000 is the maximum and minimum amount that can be deposited under this scheme in a financial year. This deposit can also be made online.
The parents or guardians can also make a partial withdrawal for the girl child for her education when she has cleared 10th class or turned 18 years. The SSY scheme can also be closed prematurely when the girl reaches 18 years. The account holders can also withdraw the full amount after the girl child turns 18, which was initially not allowed.
An added benefit was introduced in 2017- account holders could also transfer their SSY accounts. People changing locations find it hard to continue their account in a different location. Even though the process of transferring the account is simple, account holders need to visit both the old and the new post office or bank branch to transfer their accounts.
Transfer from a Post office to banks or vice versa comes with a charge of Rs. 100 and can be done only once in a year. However, if you transfer your account from one post office to another post office it is free.
Here is how you can transfer your Sukanya Samriddhi Yojana account, from the post office to banks;
- To transfer an SSY account from a post office to a bank, account holders need to visit the post office branch where they hold the primary account. Account-holders need to carry their passbook and KYC documents with them.
- The girl child does not need to be present at the branch unless she is managing the accounts herself.
- Account-holders need to inform the post office executives that they wish to transfer their account to another bank. Also, in case of account holders want to close their accounts.
- The account holder either a parent or legal guardian needs to provide the passbook at the post office given at the time of opening of the account.
- The post office executives would close the existing account at the post office and will open a new account at the bank. The post office officials will prepare necessary documents that need to be submitted at a bank to get the account transferred.
- The account holder then needs to visit the bank branch where they want to transfer the account and submit the transfer documents.
- The account holder needs to visit the bank with his/her KYC documents and the papers given to them by the post office.
- The bank officials will activate the new account and will also create a new passbook, which would include the account-holders details. It will also show the carried forward balance from the previous account at the post office.