Sukanya Samriddhi Account -When to invest to earn more returns?

Recently Government changed few rules of Sukanya Samriddhi Account, which will be applicable from 2016. The interesting part of it is the interest calculation method. I hope by following this rule you can earn more.

I have already written a detailed post on Sukanya Samriddhi Account. Let us discuss all the changes of Sukanya Samriddhi Account applicable from 2016.

# Adopted children eligible for Sukanya Samriddhi Account.

You can open the account in the name of adopted children. Earlier, this definition was missing. Hence, many felt it ambiguity to open the account in the name of adopted child or not.

# Child must be Resident Indian (NRIs not allowed) throughout the account period.

Your kid must be resident Indian at the beginning of account opening and as well as also throughout the period of account opening. The meaning of beneficiary of Sukanya Samriddhi Account is now defined as “an eligible girl child who is a resident Indian citizen at the time of opening of the account and remains so till the maturity or closure of the Account“.

# Interest declaration changed

Earlier the interest rate used to be declared yearly once. But now it is declared on a quarterly basis. I explained this change in my earlier post “Post Office Savings Schemes -Changes effective from 1st, April 2016“. Interest rate for Sukanya Samriddhi Account for a period of 1st April, 2016 to 30th June, 2016 is 8.6%.

# Term of Deposit changed

Earlier deposit in Sukanya Samriddhi Account will be allowed up to the 14 years of age of girl child. Now it is increased to 15 years. So you are allowed to invest one more year.

# Penalty clause of inactive accounts defined.

The minimum deposit in a year is Rs.1,000. If you fail to deposit this in any year, then the account is considered as a default account. You have to pay Rs.50 as a penalty and the each such year’s minimum deposit amount to revise it.

Now if you will not renew such default account, then the whole deposit amount (including the deposits already made prior to default), will earn the interest rate of  Post Office Savings Bank but not SSA (Sukanya Samriddhi Account) interest rate.

If you received SSA account during this default period, will be reverted back. However, such default rule not apply to the accounts defaulted due to death of guardian.

# What if you invest more than Rs.1.5 lakh a year?

Earlier there was not clarity on what if one deposit more than Rs.1.5 lakh. Now it is clear that if you deposit more than Rs.1.5 lakh a year, then such amount will not be eligible for interest. You are allowed to withdraw this amount at any point of time before closure of an account.

# Now you can deposit ONLINE

Earlier invest in this scheme was through Cash, Cheque or DD. Now if your post office or bank is CBS (Core Banking System) platform, then you can deposit online.

# When you must inform if your residential status changes to NRI?

Earlier there was no clarity on this procedure. Now you have to inform to Post Office or Bank within 1 month of such change. Also, you will not get any interest during this period on your SSA.

# Duplicate Passbook is now available with payment of Rs.50.

Earlier this option was not provided. Now with the written request from either account holder or guardian, you can get a duplicate passbook by paying Rs.50 as a penalty.

# Transfer of Account is EASY

Earlier you are allowed to transfer from one post office to another post office or bank and between post office to bank only when your kid relocates to the new place.

Now you can do such transfer if the guardian or kid relocate to a new place. You have to provide the address proof of such new location.

If you will not have any such address proof, then by simply paying Rs.100 you can change the account anywhere in India without providing the address proof.

# Withdrawal eligibility changed

Earlier up to the maximum of 50% of the balance at the end of a previous financial year will be eligible to withdraw for higher education purpose. The age was set as 18 years.

Now along with age restriction, education qualification is a criteria. Now one can withdraw the amount either kid attains the age of 18 years or has passed 10th standard, whichever is earlier.

For such educational withdrawal, you must submit the proof of admission. Proof in a way of confirmed offer of admission of the Account holder in an educational institution or a fee-slip from such institution clarifying such financial requirement.

You are allowed to withdraw in a single lump sum or only once in a year up to 5 years for such educational need.

# Account closure conditions changed

We all know that this account is for the period of 21 years. However, if the girl is going to marry then you can close this account after her age of 18 years.

However, earlier there was no such restriction like exactly when during marriage time the account MUST be closed. Now they specified the time period.

You are allowed to close the account if you daughter is 18 years old and going to marry. But such withdrawal is only one month before the marriage or after three months from the date of marriage.

This means, even though you applied for closure of account due to your daughter’s marriage (after she more than 18 years of age), you can close it just before one month of marriage or after 3 months of marriage.

Also, now the submission of age proof for such closure is mandatory.

# Interest payment once the account completes 21 years

Earlier there was no clarity like what if you keep the account alive even after 21 years. Now they cleared the dust. You will not earn any interest if you not close the account after 21 years. It will be idle as long as you close it.

When to invest in Sukanya Samriddhi Account to earn more?

Above said changes are related to basic features of Sukanya Samriddhi Account. But this post is meant for how we can earn more by investing wisely Sukanya Samriddhi Account.

Earlier Government plainly said that interest will be declared annually and it will be compounding on annual base.

Now the cleared the doubt of how the interest is calculated. It is exactly like Public Provident Fund (PPF) interest calculation method. The only change is date of the months.

The Government now clarified by saying “The interest shall be calculated for the calendar month on the lowest balance in an Account on the deposits made between the close of the tenth day and the end of the month“.

This means, if you want your invested money to earn the interest from that month itself, then you must deposit in Sukany Samriddhi Account within 10th of every month.

Let us say for the month of May, 2016 beginning your account balance is Rs.2 lakh. Then if you deposit Rs.10,000 into SSA account before 10th, then the balance of that month will be Rs.2,10,000. The interest will be on this Rs.2,10,000 for that particular month.

However, let us say you deposited Rs.10,000 after 10th. Then during this period, the MINIMUM balance will be Rs.2,00,000 but not Rs.2,10,000. So Rs.10,000 whatever you deposit in the month of May, 2016 will not be eligible to earn interest. It will be idle for a month. It will start to earn the interest from next month.

I will show you with an illustration that how you can maximize your returns by simply following the above condition of interest calculation.

Suppose Mr.X and Mr.Y opened SSA account on the same day and started to contribute Rs.8,000 each month but Mr.X is contributing before 10th and Mr.Y is contributing after 10th of each month then how much difference we can see.

Mr.X’s Accumulation after 21 years.

First Year Contribution is Rs.8000 PM.

1st Month Contribution-8,000+688 (interest for 12 months) =8688

2nd month Contribution-8,000+631 (Interest for 11 months) =8631 and so on…

Like this at the end of 1st year Principal is (8000*12) + (4472) =1,00,472. The same amount will be his contribution for the remaining 14 years. So, at the end of the 15th year, his accumulated amount is Rs.28,58,835. However, the account matures after 21 years. Therefore at 21st year, the maturity amount will be Rs.46,89,948

Mr.Y’s Accumulation after 15 years.

First Year Contribution is Rs.8000 PM. (But after 5th of each month)

1st Month Contribution-8,000+630 (Interest for 11 Months) =8630

2nd Month Contribution-8,000+573 (Interest for 10 Months) =8,573 and so on..

Like this at the end of 1st year Principal is (8000*12) + (3,784) =99,784. The same amount will be his contribution for the remaining 14 years. So, at the end of the 15th year, his accumulated amount is Rs.28,39,259. However, the account matures after 21 years. Therefore, at the 21st year, the maturity amount will be Rs.46,57,833.

The difference of returns between Mr.X and Mr.Y is-Rs.32,115.

This is how the difference of one-year investment looks for you. Sukanya Samriddhi Account

It may be a small amount. But what I am trying to point is by investing every month before 10th or in case of lump sum in a one shot before 10th of April every year, you can maximize to a certain extent.

Hope you understood of what I am trying to say.

164 Comments

  1. Hi Basavaraj,
    Which one is more beneficial , yearly one time contribution at April first or monthly contribution.

    Reply
    • Dear Shan,
      Both are fine. Choose the one which can be affordable for you.

      Reply
  2. I have opened my daughter ssa account on 4th oct 2018. So till 31st Mar 2019 is considered as one financial year.? So I could have invested maximum of 3 lac by this time or 1.5 lac? Actually bank has not allowed me to invest more than 1.5 lac till date.

    Reply
    • Dear Tara,
      From 4th Oct 2018 to 31st March 2019 is one Financial Year. From 1st April 2019 to 31st March 2020 is another Financial Year. Hence, if you have invested Rs.1.5 lakh per FY, then by 31st March 2020, you might complete Rs.3 lakh. Many banks are unaware of the rules.

      Reply
  3. I have opened my daughter(2.1Year on Nov 2019) SSY account on 2nd Nov 2019 and initially i have deposited 10000 in post office. let me know which date i should follow to next deposit? how can i move with yearly pay from now? when it will be get matured

    Reply
    • Dear Raj,
      You are free to deposit as much as possible as per your convenient. However, the maximum limit for a financial year must not be more than Rs.1,50,000.

      Reply
  4. Hi i have opened ssy for my daughter on 15th Sep 2018. Now when is the second investment date. Is it on or after same date of 2019 or it starts from 2019 fincial year ie April 2019. I was assuming second year investment should be made on or after 15th September of every year. Kindly clear my doubt.

    Reply
    • Dear Naveen,
      There is no such second investment date. You can invest as per your wish but the maximum yearly (April-March) should be less than or equal to Rs.1,50,000.

      Reply
  5. Dear Sir,
    i opened SSY account on 10.10.2017 and paid 5000/- on 10 th (10TH)of every month THROUGH SBI. is it right date to pay my amounts.

    Reply
  6. Hi, my doubt is what if I invest lumpsum 1.5 lakhs at the beginning of financial year,will I get maximum interest or is it good to invest every month?

    Reply
    • Dear Sathyanarayan,
      Yes, by investing at the beginning of the financial year, you will earn more than monthly investment.

      Reply
      • sir, can we invest till 14 years from the date of opening of account or only till daughter is 14 years old?

        Do we earn any interest after maturity(21 years)of account?

        Is it mandatory to close the account while daughter will get marry(before maturity of account i.e. 21years of opening of account) or we can continue till its maturity date?

        Is there any gov official site for rules and regulations or from where we will get the updated rules of course reliable 🙂

        Reply
        • Dear Saurabh,
          You are allowed to deposit up to 15 years of the girl child (not 14 years). Yes, you will earn the interest up to 21 years of age of the girl child. Yes, once the daughter turns 21 years of age, then you must close the account. The above rules are updated based on Government rules.

          Reply
          • Deposits in an account may be made till completion of fourteen years, from the date of opening of the account. Not the age of the child. If we start the account for a 9yr old on the maturity of the account the age will be 30. Provided the operation of the account shall not be permitted beyond the date of her marriage.

            Please correct me if I am wrong. Otherwise please rectify your comment.

            Reply
  7. Excellent Basu

    Reply
  8. Is amount which i have to Deposit should be same in every year or i can manage that according to myself.

    Reply
    • Dear Gaurav,
      Nothing like that. You can deposit any amount within the range of minimum and maximum amount.

      Reply
  9. Hi Basavraj,

    Thanks for the detailed post. I have opened the SSY account for my daughter in 2017 in SBI. And when I check the account statement, I see no interest credited at all and balance is exactly same as what I have deposited till now. Is not the SSY interest paid quarterly or annually ? Thanks in advance.

    Reply
  10. Hi can a Grandparent open SSY account for grand daughter.
    In presence of babies parents alive
    1)If yes can they take 80c benefit.
    2) since grandparent are aged if something goes wrong with them, will the scheme be active and can the daughter’s parents continue paying.

    Reply
    • Dear Venky,
      If parents are alive, then grandparents are not allowed to open the account. Because the natural guardian of the kid is considered as parents.

      Reply
  11. Dear Sir,
    i opened SSY account on 27.10.2017 and paid 2000/- on 27th of every month. is it right date to pay my amounts.

    Reply
    • Dear Anilkumar,
      There is no RIGHT or WRONG. Rather concentrate on how much you can invest.

      Reply
  12. Like this at the end of 1st year Principal is (8000*12) + (3,784) =99,784. The same amount will be his contribution for the remaining 14 years. So, at the end of the 15th year, his accumulated amount is Rs.28,39,259. However, the account matures after 21 years. Therefore, at the 21st year, the maturity amount will be Rs.46,57,833.

    How it will Rs.28,39,259 after 15 years ? and what is the amount accumulated at 18 years ? and how maturity is calclulated here at 21 years.. please explain!

    Reply
    • Dear Raj,
      Use the compounding formula and apply like what I did.

      Reply
      • Thanks. Is it good to apply in post office or bank.. any difference in choice . Which bank is better for SSY account. When I checked in ICICI they proposed on ICICI smart kid scheme.

        Reply
        • Dear Raj,
          There is no such major difference (except the customer friendly features of Banks). Regarding ICICI proposal, stay away anything which these BANKERS propose you. There are the most dangerous species for your financial life.

          Reply
  13. Hello Sir,

    I have a 3 year old daughter who is US born and holds US passport and US birth certificate. But has been living in India since she was 6 months old.
    Can I open this account in her name?

    Reply
    • Dear Priya,
      Whether she is holding the residential status of US Citizen? In that case, I think it is not allowed.

      Reply
  14. Hello Basu,
    I have a doubt. I have a SSY account (with Indian Bank) for my daughter. my question is for the FY 2016-17 one should deposit before 10th of every month to maximize the interest. But from FY 2017-18 I think it should be before 5th of every month??? Is my guess is correct???
    Thanks for your reply.
    Raj.

    Reply
    • Dear Raja,
      As per my knowledge, there is no such change happened. 5th of every month is for PPF.

      Reply
      • Hi,
        For FY 2016-17 (I started SSY from this!), Indian Bank calculates interest on lowest balance from 10th till end of that month. And for FY 2017-18, it was 5th. I verified with finotax.com (I hope this website is reliable because I checked PPF, which I have with SBI). For FY 2018-19, I have to wait till 31 March 2019. In my case what to do? Are there any reliable website that deals with interest calculation, or information whether 10th or 5th? Before inquiring with bank I need very clear in interest calculation.
        Thanks and regards,Raja.

        Reply
        • Dear Raj,
          I have written above post based on the Govt Notifications.

          Reply
  15. If I open ssy account on 25 march2019 then my first interest will be credit on which date??

    Reply
  16. Hi sir, I opened Sukanya account in post office on 27th of November 2017. The maximum deposit of 1.5 lakhs is calculated till 26th of November 2018 or only till March 2018. If there is still time to complete first year then I can invest lumpsum for the max limit or if it is considered as 2nd year then i can pay monthly till March 2019. Please clear my doubt.

    Reply
    • Dear Vasanth,
      Maximum limit per year means it is a financial year. Hence, it is calculated up to 31st March 2018 but not 26th November 2018.

      Reply
      • Whether I can pay till March 2032 or 2033

        Reply
        • Dear Vasanth,
          Your period of contribution ends in 2032 itself but it will nature as per the tenure completion based on FY (2033).

          Reply
  17. For lumpsum deposits of sukanya samriddhi and PPF schemes, in case the deposit amount is not done in the month of April of any financial year, depositing lumpsum in any other subsequent months will generate interests or not? Should one wait for the next Financial year and deposit the money in the month of April? Please advise.

    Reply
    • Dear Narayanan,
      “depositing lumpsum in any other subsequent months will generate interests or not?”-YES.

      Reply
  18. Hi sir,
    Sir Im a bit confused with the scheme please help me.I want to open 3 SSY accounts. Now it is month of AUG-2018…My question is which will gain more benefits as in like can i start the accounts from SEPT-2018 or shall i wait till APR-2019 and then open the accounts as its described that the interest will be calculated from the month of APR. please correct me if i am wrong. Thanks in advance.

    Reply
    • Dear Navin,
      First, check the eligibility conditions. You are allowed to open to the maximum of two accounts only. Regarding which is beneficial to open the account, my suggestion is OPEN IT NOW.

      Reply
  19. If if invest 1.5 lakh in ppf then can i invest another 1.5 lakh in SSY.? If so then whether the amount in SSY earns interest and will the returns be tax free? Please help me on this.

    Reply
    • Dear Amer,
      Both PPF and SSY are different products. Hence, you can invest Rs.1.5 lakh in each of these products. Yes, you will earn interest on both the products.

      Reply
  20. hi, I opened SSY in yr 2015-16 in Post Office, as banks were not providing the service at tt time. So is it possible now to transfer the SSY a/c from POffice to private/public bank…?
    I also visited PO for same, but they denied saying No formal outline they are aware of.
    could you please share link for any Govt gazzate or rule for the same..

    thnx..

    Reply
    • Dear Parag,
      It is possible and I think they don’t the process. If there is no such process, then let them give in writing.

      Reply
      • thnx for your insight..

        Reply
  21. which is the best method for payment for SSY scheme , imean monthly or yearly payment…….

    Reply
    • Dear Amrutha,
      If you can afford then pay it between 1st to 5th of April every year. Otherwise, monthly between 1st to 5th.

      Reply
  22. I paid 1.5 Lakhs as lump sum amount to sukanya account during May-20-2018.. Will it not earn intrest from Jun onwards? or is there a mandate that if i pay 1.5Lakhs before 10th April only, will get maximum benefits?

    Reply
    • Dear Pradeep,
      Your invested money will start earning from June 2018. If you still have the confusion, then refer my above post once again.

      Reply
  23. I have 2 daughters.. what is max.limit of contribution in SSY.. Is it 1.50 lacs combined or 1.50 lacs each.

    Reply
      • Sir,

        Is it an good investment, considering my daughter completed her 9 years ? since the during maturity she will be almost 30. Should i look at other options ? if so can you pls. guide.

        Regards,
        Muthu

        Reply
        • Muthu-Treat this as debt product and never rely on this single product to achieve your kid’s future goals.

          Reply
  24. Hi Basu,
    Is Aadhar (of Girl Child) Mandatory to open SSY account?
    I went to SBI to open SSY account for my 6 month old daughter with below documents
    1. Baby Birth Certificate copy
    2. My Aadhar copy
    3. My PAN copy
    But bank officials are saying that baby’s passport photo and Aadhar Number are must to open SSY.

    Reply
    • Aadhaar is not compulsory for opening SSY account… for SB a/c etc., it is compulsory…

      in SBI, I was able to open the SSY account without Aadhaar while to open SB a/c, they said Aadhaar is compulsory…

      Reply
      • Sir I want to open sukany samridhi yojana AC for my grand daughter .but I have not having adhar no of my granddaughter..

        Reply
  25. Sir, I am doing job for last 5 years outside India but my 2 daughters & wife is in India with all the resident proofs.
    Can my wife open SSY accounts for daughters under her name.

    Reply
    • Sir.. me and my wife we both have our ppf account… with maximum limit of 1.5 lakh each.. and i have a 5 month old baby girl… i want to open a SUKANYA account.. so can i open sukanya account.. and how will i show it to the 80c exemption.. plz clarify me in brief asap

      Reply
      • Vikas-Yes, you can open it. The combined limit of all your investments (PPF and SSA) is to be maximum of Rs.1.5 lakh.

        Reply
        • If i ivest 1.5 ssy, 1.5 to my ppf and 1.5 to my wife ppf.. then interest amount will be taxable or not..

          Reply
  26. it is a very good scheme and you describe and solve its query very well. if any one want a investment plan for there girl child it is a good opection for them

    Reply
  27. Hello Sir.

    The interest amount will be deposited in bank account, every month? or every quarter? or end of March only?

    Reply
    • Arun-Here they will not pay you interest on monthly or quarterly. Please refer the features of this product.

      Reply
      • Basavaraj-its no where clear that, how the interest will be deposited. I understand its compound interest, but any point it will be in bank right !…i am asking will it be done once a year or quarterly?

        Reply
        • Arun-Please refer the product feature. This is not the product which will give you bank the returns on a regular interval. It is like PPF. Hope you now understood.

          Reply
  28. Sir, as per new rules can i deposit 1.5 lakh in each of two daughters’ account in one FY? i.e. 3 Lakh per year?

    Reply
  29. Hi

    What if I invest 1.5 Lakhs on Day 1 of opening of the Samriddhi Yojana Account.

    The interest as per the above table you provided will be 1000+ INR in the first month, rather 1000 every month and makes 12000 per year interest?

    Reply
    • Arif-You can invest so and interest will be calculated as I said above.

      Reply
      • Thanks for a quick revert.. much appreciated

        Reply
  30. Sir, as you said now we can invest in ssy upto 15 years of daughter. Does this apply to old accounts opened before this rule?

    Reply
  31. Hello
    I want to know,,, is it mandatory to add same ammount every year in sukanya samridhi yojna,,, ex if i add 10000 ist year, can i add 20000 in second year??????

    Reply
  32. Sir if i am investing 1.5 lakh in my ppf account every year then can i invest 1.5 lakh in sukanya also in the name of my daughter.. my daughter dob is 19.9.17 and i m planing to open a sukanya account..

    Reply
    • Vikas-Yes, you can open. There is no such restrictions that PPF account holder can’t open Sukanya Samrriddhi Account.

      Reply
  33. Good day Sir. Please note my residential status is NRI but my daughter is staying in India and is a resident, so can I open an account for them.

    Reply
      • Good day Sir, Thank you.

        Please advise , now can I change the guardianship of my daughter’s account to my wife’s name as she is a resident Indian and if Not then can I close this account in the post-office and what will be the procedure for the same.

        Reply
        • Manish-Better you change guardianship (if they allow). Else, you have no option but to close the account.

          Reply
  34. Hello Sir! Very Informative Article. Regarding Sukanya Yojana, is the maturity amount upon completion of the Term, Taxable or free from Taxation? Will any TDS be deducted at the time of maturity from the maturity amount.
    Best Regards.

    Reply
    • Prasanti-Sukanya Samriddhi Yojana Account maturity is completely Tax-Free.

      Reply
  35. Hello Basu

    Great article, thanks for sharing awesome information always.

    I had a confusion related to how a ‘Year’ is defined in such schemes. Could you please help in understanding this if possible.

    Let me share an example with you:

    Assuming someone opens an account for his kid on 10th July, 2015 and deposits amount in it 20000/- for whole year.

    The kid has her birthday on 15th August.

    Now, in this case, what will be considered as one year:

    a. 10th July 2015 to 10th July 2016 – because that is when the account is opened

    b. 15th August 2015 will end the first year and the new year will be 15th August 2015 to 15th August 2016 as the kid’s birthday is on 15th August

    c. 1st April, 2016 will mark the beginning of new year coinciding with the start of new financial year and its always the financial year which counts.

    This is also to identify the duration when we can make the payment for next year without any confusion.

    Thanks for your time Basu.

    Vivek

    Reply
    • Vivek-Here a year means financial year which starts from 1st April.

      Reply
      • Thanks Basu. So this way someone who made yearly payment on 10th July 2015, should make the next payment after 1st April, 2016 and can make it till 31st March 2017. Correct Basu?

        Reply
          • Thanks Basu, very kind of you to have confirmed.

            Cheers!

            Reply
  36. Hello Sir,

    I have SSY account for my daughter in ICICI bank and I pay contribution online , This year end I will be going abroad for 3 years with my family, please advise what will happen to SSY account during these 3 years, if I need to close this then can I reopen it once I am back to India after 3 years?

    What is the best way to deal with this situation as I don’t want to close SSY account because it secures my daughter’s future.

    Thanks
    Abhishek

    Reply
    • Abhishek-As you are moving abroad for more than a year, your residential status will automatically change to NRI. Hence, it is better to inform to bank about the same and close the account before you leave. As of now rules are specific of closing the account immediately the status changes to NRI. Hence, you are not allowed to re-open the account. However, if you are eligible for opening the account, then you can open new account once you return.

      Reply
  37. Hi,
    Thank you for a very informative post. My daughter holds a PIO card, will I be eligible to invest in SSA?

    Reply
      • sorry I didn’t get the question

        Reply
  38. Hello Sir,

    Thanks for the detailed information about SSY Account.
    I have SSY account for my daughter which was opened it in January – 2017.

    I have one query regarding the change of “# Term of Deposit changed”. I assume that it changes the minimum term of deposit.

    Suppose if I only invest for 14 years and then should my account charged for Penalty because the account is inactive for 15th year?

    Reply
    • Jaydeep-You mean to say regarding the minimum deposit into SSY?

      Reply
      • No Sir,

        I am a little bit confused about the “# Term of Deposit changed”. As you mentioned that now we can invest up to 15 years instead of 14 years. But if I only invest till 14 years, will that account applicable for Penalty because the account is inactive for 15th year.

        Reply
  39. Sir,
    Can one claim exemption upto Rs.3.00 lacs under 80C if two SSA accounts are opened and Rs.1.50 lacs is paid into each?

    Reply
    • Preetha-The maximum limit under Sec.80C is limited to Rs.1.5 lakh only.

      Reply
  40. Sir
    If i invest 1.5 lac per year for 15 years then what will be the tentative amount i will get after 21 years

    Reply
    • Arun-Use the online calculator of this product to calculate the same.

      Reply
  41. if I want to deposit 12,000/year, which one is best option, every month 1000 or 12000/- single time? If single time is best, suggest the best time for deposit

    Reply
    • Curious-It is purely your affordability. However, if you can afford a lump sum, then invest it before 10th April every year.

      Reply
      • Thanks a lot for quick reply.
        I just want to know, If I can afford both the ways, which is beneficial, in terms of interest gain.
        May be you can let me know the accumulated interest in both the cases.

        Reply
  42. Hi,

    Your article is useful.
    I am NRI. I recently opened KSA (Aug 2016) for my daughter in my bank. They did not inform anything like what you say that NRI is not allowed. I have paid 1.5L already.
    Can you please suggest me to close this account and transfer money to either PPF or MF?
    Thanks in advance.

    Regards,
    Ganesh

    Reply
    • Ganesh-They did biggest mistake. You are an NRI means you are not allowed to open at first. However, you already opened. Hence, in written you must inform to Bank that unknowingly you opened the account. They have to close the account immediately and will take it back any interest credited to it. The principal amount you deposited will be returned to you without any interest.

      Reply
      • Thank for your quick respond.
        Could you please suggest me to transfer this money (yearly 1.5L) into Mutual fund as i read your article with regards to the same?

        Regards,
        Ganesh

        Reply
        • Ganesh-That is different ball game, for which without knowing your financial goals, I can’t simply judge and say move this money to Mutual Funds.

          Reply
          • Good morning!
            Thank you for your reply.

            I would like to expect the same return as KSA if i deposit 1.5L per annum in MF.

            In additon i would like to invest 8L for 6 months and 2 L for 1 year in MF

            Kindly suggest me the relavent MF

            Regards,
            Ganesh

            Reply
            • Ganesh-You can start with asset allocation like debt:equity in ratio of 30:70. For debt you can use PPF (as you are claiming that you are ready to wait for 15 years). For 6 months to a year investments, use Bank NRI FDs.

              Reply
              • Hi Basavaraj,

                Thank you for your prompt response.
                Your mentorship is highly valuable.

                Regards,
                Ganesh

                Reply
  43. Sir,
    I have a SSY account in post office but I want transfer it from P.O. to a bank. So what is the process? Pls explain me….

    Reply
  44. Sir
    If my daughter is 18 years old and going to marry.
    What are the documents that needs to be produced at the time of Account closure?
    I meant, any document(Proof) required that she is going to marry?

    Vinod.

    Reply
    • Vinod-Yes, you have to produce proofs. But as of now they not specified the procedure for the same.

      Reply
  45. If I open a account for girl child whose age is 9 year then how many more year I have to invest
    15 year means 24 yr but rule says it matured on attaining 21yr ..
    Explain it sir..

    Reply
    • Ramesh-You can deposit up to her 15th year. From 16th to 21st, there is no investment.

      Reply
  46. With respect to the Term of Deposit, I understand that the deposits can be made till 14 (or 15 now) years from the start date of investing and not up to the 15 years of the girl child. As per the point discussed here – “Earlier deposit in Sukanya Samruddhi Account will be allowed up to the 14 years of age of girl child. Now it is increased to 15 years. So you are allowed to invest one more year”.

    Could you please let me know whether my understanding is correct.

    Reply
  47. I’ve SSY account in Post office. How can I deposit online in this account.

    Reply
      • Thanks sir.

        Reply
  48. Hi,

    Stumbled upon this blog. Must say that the articles are very informative & detailed.

    My daughter is born in Oct 2006. I have opened the SSY account on Sep 2015.

    Please help with clarity on the following:

    1. Till what date can I deposit into this account ?

    2. When can the 100% of the money be withdrawn ?

    3. Upto which time I can hold the account without closing & can earn interest ?

    Thank you in advance.

    regards
    SK

    Reply
    • SK-1) There is no such specific date for investing in a financial year.
      2) It is explained above.
      3) It is explained above.

      Reply
  49. Hi Basu,

    Just a generic query.. for SSY or PPF should we keep the investment premium amount constant year over year or can there be variations (depending upon my investment capability)
    Year 1= 75000
    Year 2= 50000
    Year 3= 80000 .. and so on
    Or should that be constant?

    Or should a person continue with the same first year premium all throughout the 15 year tenure?

    please reply

    Reply
    • Biswaroop-You can change as per your wish but within the maximum and minimum range of respective products.

      Reply
  50. Hello sir,
    Appreciate your style of writing in simple and too cleaR MANNER.
    I am planning to invest in SSY scheme for my 1 yr old daughter.
    I want to know best way to open and invest in SSY account ONLINE on monthly basis.Transactions online.
    I don’t want to visit banks at all. Pls help.

    Reply
  51. You said in your blog that we can withdraw maoney from account after girl passes 10 std. in 5 installments. but together the sum should be 50% money of balance or whatever amount is needed for edecation.
    Aparna

    Reply
    • Aparna-The maximum is 50% of the balance at the end of previous financial year. If it less, then that you can withdraw as per your requirement ONLY.

      Reply
  52. Sir,
    I have a Account of SSY in Post Office. I want to transfer my SSY account to State Bank of India from Post Office. what is the process & Notification of Govt. of India.
    Can I do this?
    Because the Post Office staff say that they have Not any notification of Govt. of India regarding this.

    Please Suggest.

    Reply
    • Veer-As of now the only notification is that YOU CAN TRANSFER. But procedure is yet to be notified by Govt.

      Reply
  53. Dear sir I have already invested 1.4 lakh in sukanya last year. Now I want a scheme with flexible investment amount ( suppose 1lakh this year 1.5 lakh next year and so on for a Term of 18 to 20 years. Please guide me in what scheme should I invest other than sukanya as my limit of sukanya has already been exhausted.

    Reply
    • Rakesh-Here in this scheme also such flexibility is there. You can use PPF also.

      Reply
      • Thanks

        Reply
  54. Super post Basu. V informative. Thanks.

    Reply
  55. Hi Basavaraj Tonagatti,

    What is the best approach for Depositing the Amount in SSA.

    Monthly or Yearly?

    Thanks
    Pavan

    Reply
    • Pavan-I shared that in above post. Either a lump before 10th of April every year or before 10th on every month.

      Reply
      • Thanks a lot Basavaraj Tonagatti

        Reply
  56. Thanks a lot Basavaraj

    I guess for PPF we have to deposit by 5th of moth.

    Reply
  57. My Brother (Non-resident) opened a Sukanya Samriddhi Account for his daughter in May 2015 itself. Both my brother and his daughter are non-residents. What is the rule for his daughter? The rule has changed only in May 2016. We opened the account in May 2015 itself.

    Reply
    • Mahesh-Please read once again the above clarification. It states clearly that account holder (KID), must not be an NRI. If she is NRI, then you must inform immediately. Otherwise, you will not earn any interest on such accounts. At that time the rules may not be clear. But it is best for your brother to inform them and close the account.

      Reply
  58. I just got an account open for my daughter was looking for more details on how this a/c going to work in terms of interest, maturity..etc you just answered all the question cheers Thanks a lot sir

    Reply
    • I opened ssy account for my daughter on 21 feb. 2019 , i have following queries
      1) what is the maturity date of this account?
      2) is there any difference in maturity value for account opened in february and april?
      3)which time of year should i invest in this account now onwards to get maximum returns or i should invest in feb. every year?

      Reply
  59. Thanks a lot for such an important information.The way you present intricacies related to any investment option or policy is really appreciated and is really very insightful.You are simply best at what you do. Thanks again.

    Reply
      • Sir .I want to open SSY account for 9yr old child . For how many year I have to invest . Rule says 15yr .I do so then it mature on 24th year . But SSY rule says it mature on attaining the age of 21
        My investment actual work for 6 or 15 please explain

        Reply
        • Ramesh-I explained the rules in above post. Please go through it. You can withdraw it when your kid turns 18 years of age and going for marriage.

          Reply

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