Sukanya Samriddhi Yojana is a small savings scheme launched by the Modi government for mainly girl children in India. It was started under the ‘Beti Bachao Beti Padhao’ campaign. This scheme helps in raising funds for the education and marriage of daughters. At present, 8.1 percent interest is available under the scheme.
A child investment plan is very essential nowadays. This is the best gift you can give to your child. There are many child investment plans in India, from SBI child investment plans to many government schemes.
But in this article, I will be giving you an account of SBI Smart Champ VS Sukanya Samriddhi Yojana. So check this out below the Sukanya Samriddhi vs SBI smart champ details…
Sukanya Samriddhi Yojana
Sukanya Samriddhi Yojana is a girl child insurance plan for girl children. This yojana has become a favorite investment option for long-term investors wishing to build up wealth for the girl’s marriage or education. Sukanya Yojana offers financial security and the highest tax free return.
The interest rate for such child insurance plans is 9.2% for the financial year 2015-2016 and it was 9.1% for the previous financial year 2014-2015. This plan is mainly for your girl child’s education purposes.
- Max deposit INR 1.5 Lakh Annually
- Minimum deposit of INR 250/- Annually
- You can open the Account in the name of a girl before she reaches 10 years
- One account for 1 girl. Not more than that
- Accounts for this yojana are available in authorized banks and Post offices only
- You can withdraw the money only for higher education to meet the education expenses of the account holder
- Also, you can close the account prematurely if the girl gets married after attaining 18 years
- These accounts are transferable anywhere in India
- This account gets a maturity benefit after completing 21 years of opening the account
- The deposit allows for deduction under Sec.80-C of the Income Tax Act.
- You will get income tax benefits because the interest earned here is tax-free.
SBI Smart Champ Insurance
SBI Smart Champ Insurance plan is an individual non-linked participating life insurance plan offered by SBI-Life Insurance Company. The SBI smart champ review shows that it is particularly designed to meet your child’s educational needs and protect them from future uncertainties.
With the help of this plan, you can save for your child’s future education as well as ensure a bright future for them. The SBI little champ plan offers assured benefits which are unusually paid during the policy term.
- The smart benefits start to flow after the child is 18 and continue to do so each year until they turn 21.
- This insurance will be maintained even while you are away.
- The annual equal installment payment you get can readily cover the child’s educational needs.
- Following the policyholder’s passing, there won’t be any more premiums due, which eases the financial load on the surviving family members.
- By selecting the appropriate category, it is also feasible to pay the premium for a brief period of time.
- In the unfortunate event that the policyholder does not survive the policy term, the nominee will be given an immediate payment of the sum promised.
- With the final payment of the smart benefit, you may even receive a survival benefit.
- Depending on your convenience, you can decide whether to pay the premium in regular installments or all at once.
- The insurer will get immediate payments in the event of a permanent disability brought on by an accident, and there is no further obligation to pay the plan’s premiums.
- According to the current Income Tax Act regulations, the policyholder is qualified for an income tax benefit in this plan.
Below I am giving an account on SBI Smart Champ VS Sukanya Samriddhi Yojana to help you to know the difference between those and also help you to choose which one is better. See this below…
SBI Smart Champ VS Sukanya Samriddhi Yojana, Know The Difference:
Here is a detailed comparison between two different policies Sukanya Samriddhi Yojana VS SBI Smart Champ. So, let’s keep an eye on the rest article to know the basic difference between these two policies for your child’s future.
About The Plans:
This an SBI Smart Champ VS Sukanya Samriddhi Yojana comparison. By this, we get to know what are these plans which will help you with your financial planning for your little ones’ future.
SBI Smart Champ Plan:
SBI Smart Champ Insurance Policy is a non-linked life insurance scheme that is aimed at providing a financial cushion to meet any needs a child could have. This policy offers assured benefits, with the policyholder protected under a life cover, ensuring that lack of finances does not hamper the dreams of his/her children.
SBI Smart Champ is a participating policy and will accrue bonuses at the end of every policy year until the child completes 18 years of age and a final Terminal bonus if any.
SBI Life Wealth Assure – Smart Champ SBI Insurance provides insurance cover to the proposer, who will be the life assured and the policyholder, for death and Accidental Total Permanent Disability (ATPD) throughout the term of the policy.
(You can also Read: SBI child education plan/SBI Child Scheme)
Sukanya Samriddhi Yojana Scheme:
Despite being a small savings scheme, the Sukanya Samriddhi Account has the potential to have a phenomenal impact on the lives and self-esteem of young girls in the country.
Under this scheme, a parent or legal guardian can open an account in the name of the girl child until she attains the age of 10 years.
As per the government notification on the scheme, the account can be opened in any post office branch and designated public sector banks.
Coverage Of The Plan:
This is one of the SBI Smart Champ VS Sukanya Samriddhi Yojana comparisons. We get to know about the coverage of both plans.
SBI Smart Champ:
SBI Smart Champ covers Survival Benefits, Death Benefits, Maturity Benefits, Child Education Corpus, etc. So, the child plan in SBI is very beneficial. The SBI Smart Champ is one of the most famous child investment plans in SBI.
- After the child turns 18 and up until the age of 21, Promised Smart Benefits are provided for 4 years at a rate of twenty-five percent of the Basic Sum Assured as well as 25% of the granted Simple Reversionary Bonuses.
- Depending on the policyholder’s age, a lump sum benefit for death equal to a fraction of the single or yearly fees paid will be given in the event of the policyholder’s death or disability during the term.
- At maturity, the policyholder receives the final payment of the Smart Benefit, along with any vested Compensation and Terminal Bonus.
- Alternatively, you can receive the reduced price of Smart Benefits and vested bonuses in one lump sum over the previous three premium years.
- The insurance remains in effect, future bonuses continue to accrue, and Smart Benefits gets reimbursed in accordance with the original terms despite the future premiums being waived.
- Benefit from income tax on premiums paid in accordance with Section 80C and on claims received in accordance with Section 10(10D) of the IT Act.
(You can also Read: SBI schemes for children)
Sukanya Samriddhi Yojana:
The objective of Sukanya Samriddhi Yojana is to ensure the financial independence of women by encouraging them to invest in a savings scheme that would enable them to fulfill their long-term life goals and dreams like higher education, marriage, etc., and ensure financial stability.
The Govt. of India began a social effort on January 22, 2015, to address the problem of the dropping gender ratio of children in our nation. The Beti Bachao Beti Padhao movement promotes the idea that females should be educated and saved.
The government’s Ministry of Women & Child Development, the Ministry of Human Resource Development, and the Ministry of Health and Family Welfare are jointly in charge of this national effort.
- To cease the abuse of sex determination and gender discrimination against minors.
- To make sure that more girls participate in education as well as activities.
- To guarantee the girls’ survival and protection.
The Sukanya Samriddhi Yojana tries to address two significant issues relating to girl children: education and marriage.
By assisting parents of girl children in creating a fund for their kid’s good education and worry-free marriage expenditures, it aims to secure a bright future for girl children in India.
The Sukanya Samriddhi Fund was created specifically for this purpose under the Sukanya Samriddhi Yojana.
Benefits Of The Plans:
Here, we are going to list the basic benefits that these two policies offer. Let’s get a vivid idea about the benefits of both SBI Smart Champ and Sukanya Samriddhi Yojana.
SBI Smart Champ:
The SBI Smart Champ Plan offers a number of advantages, including assured smart benefits, triple child protection with a lump sum payout, and the ease of paying a one-time or low-cost premium. Read on to learn about SBI Smart Champ’s additional advantages.
At the maturity of the policy, when your child has reached the ages of 18, 19, as well as 21, insured persons may take advantage of smart benefits to meet their child’s academic requirements as shown in the following table:
|Child’s Age||Provided Benefits|
|18 Years||25% Basic Sum Assured AND 25% Simple Reversionary Bonus|
|19 Years||Same As Above|
|20 Years||Same As Above|
|21 Years||Same As Above + Terminal Bonus, in case applicable|
Only if the policy is in place will this death benefit be paid out in the event of death or total permanent disability because of an accident as the greater of a lump sum payment or 105% of all premiums paid for a covered event throughout the policy term.
Waiver of Due Premiums
Provides your family with financial security while you are away by forgoing all upcoming premium payments. If applicable, an earned bonus will keep continuing to be applied.
Obtain the tax advantages provided by Sections 80 C and 10 (10D) of the Income Tax Act of 1961.
The policy provides a lending opportunity to cover urgent financial needs prior to the previous three policy years. Loans are only available for a maximum of 90 percent of the surrender value and can only be taken once the policy has accrued surrender value. The corporation must disclose the loan’s interest rates.
A single payment at a price reduction of 6.25% per year may be obtained in exchange for the discounted value of all future due installments, including any terminal bonuses.
Sukanya Samriddhi Yojana
The Sukanya Samriddhi plan gives parents or legal guardians the chance to financially plan for their girl child’s future years in advance, securing her future and assisting her in realizing her goals. The following are some advantages that make Sukanya Samriddhi plan an effective savings program for ensuring the financial future of girls:
The account balance that a girl child will be entitled to upon the completion of a Sukanya Samriddhi plan is the total of the principal amounts continuously paid in the account as well as the interest that has accumulated on this principal amount.
The account holder, or the girl kid for whomever the account was formed, will get this money directly. The Sukanya Samriddhi program aims to empower Indian girls by enabling them to pursue their dreams and securing their financial independence.
In addition to guaranteeing the accountholder’s financial security, Sukanya Samriddhi Yojana provides tax advantages under Section 80C, 1961.
All other investments exempt from taxes according to this section, are subject to a maximum tax exemption amount that can be obtained of Rs. 1,50,000.
Taxes are not due on the maturity amount or the interest that has accrued over the Sukanya Samriddhi plan’s term.
Partial Or Premature Withdrawal
Although payments can be done into the Sukanya Account for 14 years after the date of its issuance, the account matures when the account holder turns 21. The account expires when the girl kid is 21 years old or marries, whichever comes first.
You can only take the remaining funds from her Account if she was at least 18 years old on the day of her marriage.
However, only for the reason of paying for her higher education is a partial payment of up to 50% of the balance in her account permitted.
This plan provides the highest rate of interest. So. if you are planning your girl child’s future, then this yojana is one of the best ones for you.
You can just choose the Smart Champ Plan if you’re looking for a standard insurance policy for your kids. The Smart Scholar Plan, on the other hand, is an option in case you want to increase your money while accepting some risk.
When selecting a market-linked insurance plan, bear in mind that you must closely monitor the performance of the funds. You may give your kids a reliable stream of income to take care of their financial requirements in the future by picking the right plan.
Here are some of the most frequently asked questions and their answers are given below. Let’s check out the FAQ regarding Sukanya Samriddhi Yojana VS SBI Smart Champ
Q. What Is the SBI Smart Champ Insurance plan?
A. The SBI Smart Champ Insurance Plan/SBI Life Insurance Smart Champ is a traditional SBI plan for the child, which is specially designed to provide security for the insured child’s future requirements even at the time when the parent will not be around.
Q. What is Sukanya Samriddhi Yojana?
A. Sukanya Samriddhi Yojana also known as SSY is an insurance policy for girls. This plan is designed by SBI Life Insurance and the policy is one of the best government-backed insurance plans for girl children only. You can reach the official website of SBI by clicking on the given link www.sbismart.com
Q. How many Accounts are allowed for Sukanya Samriddhi Yojana?
A. Apparently, a maximum of 2 girl children from a single family will be allowed to get security under the Sukanya Samriddhi Yojana. However, in the case of twins or triplets at the time of the second delivery, 2 or more girl children will be able to get security under the scheme.
Q. What is the Rate of Interest of Sukanya Samriddhi Yojana?
A. The rate of interest is 8% compounded annually in 2023. However, the rate of interest changes every now and then. So, before you invest, ask the authority.
Q. What Is the Rate of interest in SBI Life Smart Champ Insurance?
A. The rate of interest of SBI champ is 8% per annum.
Q. Is it mandatory to open the Sukanya Samriddhi Yojana account in SBI Bank only?
A. NO… there are some authorized banks too from where you can easily get the Sukanya Samriddhi Yojana form and open your account there only.
Q. Can I Open SBI Sukanya Samriddhi Account?
A. YES… you can get the Sukanya scheme in SBI. From the Sukanya SBI account, you can get all the benefits of the Sukanya SBI scheme.
Q. Is the SBI Smart Champ Insurance only for girls?
A. SBI child plans for girls list can include this plan. But the plan is basically for both boys and girls. It is actually an SBI children’s plan.
Q. What are the authorized banks to open a Sukanya Samriddhi Yojana (SSY) Account?
A. Here is the list of the banks for the Sukanya Samriddhi Yojana (SSY) Account:
- State Bank Of India (SBI)
- Allahabad Bank
- Axis Bank
- Andhra Bank
- Bank of Baroda (BOB)
- Bank Of Maharashtra (BOM)
- Central Bank of India (CBI)
- Canara Bank
- Corporation Bank
- Dena Bank
- Indian Bank
- Indian Overseas Bank (IOB)
- IDBI Bank
- ICICI Bank
- Oriental Bank Of Commerce (OBC)
- Punjab & Sind Bank (PSB)
- Punjab National Bank (PNB)
- Syndicate Bank
- State Bank of Hyderabad (SBH)
- State Bank of Patiala (SBP)
- State Bank Of Mysore(SBM)
- State bank of Travancore (SBT)
- UCO Bank
- United Bank of India
- Vijaya Bank
Q. What is Sukanya Samriddhi Yojana’s online payment procedure?
A. You must have IBPP loaded on your smartphone in order to make SSY payment installments online.
- Visit the IBPP app, select the DOP products tab, then select Sukanya Samridhi Yojana.
- Put in your SSY account number and DOP customer ID.
- Make the payment you need to make for the deposit amount.
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