Prime Minister’s Savings Schemes

By BankBazaar | December 2, 2015

PM's Saving Schemes

The recently launched Gold Schemes by the Prime Minister have received a great response from the masses. While Gold Schemes have created quite a buzz, we can’t forget that Prime Minister Narendra Modi launched several other public welfare schemes too in 2015. While some schemes can help you save better, some provide great insurance cover. There’s a special savings scheme especially for the girl child. As the year comes to an end, here’s an overview of Prime Minister’s Savings Schemes that garnered a lot of attention.

Jan Dhan Yojana

In an attempt to bring economic equality in the long run, Prime Minister Modi launched Jan Dhan Yojana, which enrols every family living in India to open a bank account free of cost. Other than providing a way to build savings for the common man, this scheme offers multiple benefits.

Bank accounts opened under Pradhan Mantri Jan Dhan Yojana are zero balance bank accounts, which means one doesn’t have to maintain a minimum balance. Every family that holds an account under this scheme will be provided with a RuPay Debit Card to withdraw money with ease. But the biggest advantage of enrolling under this scheme is that one gets a life cover of Rs. 30,000 and accidental cover of Rs. 1 lakh.

Well, that’s not all. The account holder will also be eligible for an overdraft limit of Rs. 5,000 from the bank. This facility is available based on the account holder’s transaction history.

Sukanya Samridhi Yojana

For the welfare of the girl child in India, the Prime Minister launched a scheme called Sukanya Samridhi Yojana, under which parents or guardians of the girl child can save money for her higher education and marriage.

As a part of ‘Beti Bachao, Beti Padhao’ campaign, this savings account can be opened at the Post Office or at any authorized bank. A minimum sum of Rs. 1,000 has to be deposited in the account annually, and failing to do so will lead to a fine of Rs. 50 that will be deducted from the account.

One can deposit a maximum amount of up to Rs. 1, 50,000 under this scheme. One of the major highlights of Sukanya Samridhi Yojana is the high interest rate of 9.25%. The account can be opened any time after the birth of the girl child till the time she turns 10 years of age.

After she turns 10, the girl child will be eligible to operate the account herself. Once the girl turns 18, partial withdrawal of up to 50% of the accumulated amount is allowed from the account for higher studies. The account will remain active for 21 years from the opening date. However, once the girl gets married, the account will be closed with the provision to withdraw the full amount.

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