5 unknown facts about Sukanya Samriddhi Yojana (Account) Rules

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Many individuals may be already investing in Sukanya Samriddhi Yojana (Account). However, are you aware of the few facts of  Sukanya Samriddhi Yojana (Account) Rules? Let us discuss about these in detail.

 5 unknown facts about Sukanya Samriddhi Yojana (Account) Rules

Sukanya Samriddhi Yojana (Account) is a Small Savings Special Deposit Scheme for the girl child. This scheme is specially designed for girl’s higher education or marriage needs.

5 unknown facts about Sukanya Samriddhi Yojana (Account) Rules

# What if you deposit more than Rs.1,50,000 in Sukanya Samriddhi Yojana (Account) in a year?

We all know that the maximum yearly limit for Sukanya Samriddhi Yojana (Account) is Rs.1,50,000. Here, a year means financial year which starts from 1st April of the year to 31st March of the next year.

But what if you deposited more than Rs.1,50,000 unknowingly?

Banks or Post Offices usually not accept beyond Rs.1,50,000 per year. However, if due to any accounting error, they accepted also, then such amount which is more than Rs.1,50,000 will not earn any interest.

It will be kept idle with Government. However, an amount deposited in excess of an annual ceiling of Rs.1,50,000 may be withdrawn anytime by the depositor.

Hence, keep an eye on this maximum limit of investment per year. Otherwise, your money will not earn a single rupee of interest.

# Default Account will only earn savings account interest rate after 15 years

The yearly minimum deposit is prescribed as Rs.250. If you do not deposit this minimum yearly amount, then such accounts are considered as DEFAULT accounts. To make it active, you have to make a payment of Rs.50 per year as a penalty along with the such minimum specified amount for the year or years of default.

However, if such default account is not regulized within the 15 years from the date of account opening, then the whole deposit, including the deposits made prior to the date of default, will be eligible only for interest rate prescribed for Post Office Savings Bank at the time of its maturity.

If any amount credited wrongly by way of interest into an Account under default will be reverted to the Government account as soon as it comes to the notice of the Bank or the post office concerned.

Hence, never default your Sukanya Samriddhi Yojana (Account) beyond 15 years from the date of account opening.

However, this rule not applies to Sukanya Samriddhi Yojana (Account)s where the account turned default due to the death of the guardian of the account holder.

# No interest after maturity

We all know that the maturity of the Sukanya Samriddhi Yojana (Account) is 21 years from the date of opening of an account or if the girl gets married before completion of such 21 years (whichever is earlier).

However, many feel that Sukanya Samriddhi Yojana (Account) offers best interest rate and anyhow the maturity amount is completely tax-free.

However, you must also know the facts that no interest will be payable once the Account completes 21 Yrs from the date of its opening.

Hence, if you keep Sukanya Samriddhi Yojana (Account) active even after 21 years from the date of its opening, then your account will not earn a single rupee of interest. Because of this, it is always best to close it immediately once the account completes 21 years.

# Premature Withdrawal Rules

You can withdraw 50% of the accumulated amount in Sukanya Samriddhi Yojana (Account) can be withdrawn for girl’s higher education. The account’s balance at the end of the preceding financial year is used for the calculation.

Hence, for last FY the balance is Rs.10 lakh and your daughter is more than 18 years old, then you can withdraw Rs.5 lakh for her higher education.

However, such withdrawal will not be allowed unless the child attains the age of 18 years or has passed the tenth standard, whichever is earlier.

The amount of withdrawal is restricted to the ACTUAL demand of fee. Hence, you have to provide the proof regarding the fee details.

# Transfer of Sukanya Samriddhi Yojana (Account)

It is not mandatory for you to hold the account up to 21 years completion in the same Post Office or Bank. You can easily transfer your Sukanya Samriddhi Yojana (Account) anywhere in India. It may be from or to post offices and from or to Banks and between post office and Bank, at FREE of cost on furnishing of proof of shifting of residence of either the guardian or the Account holder and otherwise, on payment of a fees of one hundred rupees to the post office or the Bank to which the transfer is made.

Refer my earlier post in this regard “Transfer Sukanya Samriddhi Account from Post Office to Bank“.

Hope these unknown rules about Sukanya Samriddhi Yojana (Account) made you to be cautious while operating or depositing. Let me know if you have any doubts.

Refer our earlier posts related Sukanya Samriddhi Yojana (Account):-

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159 Responses

  1. HI!
    As a mother if i m opening ssa acount for kid..after my death can my husband continue the premuims of same account ??

  2. Dear Sir
    I have missed deposit 1.5 lakh a year but deposited minimum required. Can I deposit the balance this year ( 1.5 lakh of this year + balance of last year)

  3. In PPF, the first year of PPF starts from the start of the first financial year after opening the PPF account.
    i.e. if i opened the PPF account on 10th April 2020, the first year starts only from 1st April 2021, hence the end of 15 year block will be on 31st Mar 2036.

    1. Is it the same in SSY ? OR in SSY the first year starts from the date of opening the account ?
    2. Like PPF, can i continue to deposit funds in the SSY account even after 15 years are complete ? Will these new deposits (if allowed) earn interest ?

      1. Thanks.

        Kindly also respond to my 2nd question:
        Like PPF, can i continue to deposit funds in the SSY account even after 15 years are complete ? Will these new deposits (if allowed) earn interest ?

  4. Hi,
    Can I deposit different amount value each year, like
    1st year 1 lakh
    2nd year 50k
    3rd year 75k
    4th year 250 rupees

  5. I was told that I can make payment for Sukanya samriddhi yojana once in a year..my other friends were paying on a monthly basis…how can I can do tha same?

  6. I am grand father of one girl, Navasi( Beti ki beti), of 7 years old. Can I open an account under SSA

  7. Can I open SSA in name of my niece, as her parents are staying abroad ? Do I have to submit any document showing relationship?

  8. Sir I had 2 sukanya accounts for my daughters in 2016 i gave money to bank worker but he haven’t contributed any amount when i went to ask they said it is dormant.now can i open account in anywhere please clarify me

  9. Hello Sir,

    Please let me clarify that can i opened an account for my daughter who is now 10 Years and 6 months old.

  10. Hello sir
    I have two daughters and I already opened two SSA in a bank, can I deposit 150000 in both accounts
    Pls clarify

  11. I opened an SSA acct through a Post Office in 2015 when my daughter was 10 years and 10 months old. Now I understand that it has to be opened before the girl child attaining an age of 10 years. Whether the rules have changed or there is en error on part of Post Office…. what is its impact on that acct ?

  12. Hi sir, I want to open SSA fir my daughter, she is 5yrs now. Can I open the account and pay past 4yrs premium all at a time to cover 4yrs as per her age so I can withdraw when she is 21? Another question is can i deposit advance premium in SSA?

  13. Sir,

    I have a Sukanya Samriddhi account on the name of my daughter in Bank of India.
    On the getting account statement in this year I show their was no Interest booking credited for 2019-2020 which is showing every year in account statement.

    From bank I don’t get any update regarding same.

    What I can do for this

  14. Sir i have opened my daughter’s SSA in 2016 when she was to complete 10 years.How many years i have to contribute and when will the scheme attain maturity

  15. I have opened SSA account for my elder daughter 4 years ago and paying 1.5 lakhs every year. Can I open another account on my younger daughter name?, if yes, what’s the max amount I can invest on both the accounts?

    Am I eligible to pay more than 1.5 lakhs in a financial year?

    1. Hi, we had deposited 1 lakh/year from past 6 years in ssa of my daughter. For this financial year can deposited 50k. And is it compulsory to deposit the same amount every year.

  16. Hi Bhavesh,
    I have open a ssa for my daughter on 2015 but she was OCI holder and bank manager mentioned me that I can open the account but now when I rechecked the doscument it was mentioned OCI holder cannot open the account even if parents are India.Now what I can donfor that.

  17. Dear Sir – I opened SSY in 2015 and made some payments in 2015 and 2016. But from last 4 years, we haven’t made any payment. Now we wanted to deposit 1.5 Lacs X 4 years to get the maximum benefit and cover for the lost 4 years. Will we get the interest on all this amount or we can only avail interests on 1.5 lac of current fiscal year?

  18. my wife opened a SSA account of my daughter & she signature
    Guardian column.
    Therefore can i submit tax rebate in SSA accounts.

  19. Hello Sir,

    Can you please let me know which date’s balance is considered for calculating monthly interest in SSY account. Some sites say it’s the 5th of the month while others say its the 10th of the month.

  20. Hi,
    I already have one ppf account in which I am making 1.5 lakh investment annually for my retirement. I came to know that, if I open a ppf account in the name of my daughter then the cap is 1.5 lakh together for my ppf and her ppf account combined. So I cannot invest 1.5 lakh each in my ppf and my daughter’s ppf.
    Is it same with ssy? That is if I open ssy account for my daughter then, can I continue to invest 1.5 lakh in my ppf and 1.5 lakh in her ssy annually or is the cap is 1.5 lakh for both my ppf and her ssy accounts combined as in ppf? Please answer. Thanks in advance

    1. Dear Rao,
      Both PPF and SSY are different products. Hence, the rule of having a PPF account in your name and one as a guardian is not applicable here. Hence, go ahead and open SSY and you can deposit Rs.3 lakh a year including both accounts.

  21. Hello sir, we had opened an sukanya yogana account in the year 2018.but as my husband went abroad immediately there after we didn’t deposit in the account for two years.. Just need to know whether we have to personally go in the bank and pay the penalty or after depositing amount it gets automatically deducted from the account. We r ready for the penalty and continue the account. Thank you in advance.

  22. Dear sir,
    I am paying SSA sice 2017. I would like to stop it now. Can I get back the money which I was paid from last three years.

  23. I had opened the account 03 years back and since then I am depositing some amounts not at regular intervals…sometimes after a gap of 5 months or 6 months ..it is not regular actually. But in a financial year some deposits is made it is in my knowledge. Is this practice earning interest or not

  24. Hi

    I have taken this scheme 3years back where as the interest rate was closed to 11%. It is been gradually govt reducing the rate and now it is 7% plus. So, i believe in coming years it is going to be more less. Should we have to continue with this scheme?

    Regards,
    Srikanth

    1. Dear Srikanth,
      Treat this product as your debt part of kid educational or marriage goal. Above that even if the interest is down, who is currently giving your 7% tax-free returns?

  25. sir I have not able to paid any money for Sukanya samruddi yojana account for the year 2019 2020. Can I possible continue
    sukanya samruddi yojana account? Or possible continue that account

  26. Hi sir,

    This year (April 2020) I have not yet received interest amount in my daughter SSYA account. What could be the possible reasons? And previous year (2019) interest was credited exactly on 1st April.

    I have made proper investment (1000+ each month) every month from April 2019 till March 2020.

    Could you please let me know whom to contact? I have SSYA account in hdfc bank.

      1. Thanks Sir, Even I am thinking it’s because of lockdown. Reason for posting it was because few my colleague has received interest amount in SSY account. Even they that it in HDFC bank. So though of asking whom should we contact for such issues.

  27. Dear Sir,
    As we all aware the current financial year has been extended upto June 2020, So if I open SSA now, Will I have time only till June to deposit 1.5 Lakh ?

  28. Dear Sir

    I have opened the account on 22nd April 2019, I was under the impression that one year completes on 22nd Apr 2020.
    Even the SBI bank official confirmed the same while opening the account.

    Nevertheless, I have couple of questions:
    1). How do I make payment for the last year?
    2). Can we make deposits of different amounts every year?

    Please guide.

    Regards
    Swarup

    1. Dear Swarup,
      For the last FY you are unable to invest now. Yes, you can deposit different amounts for different years. Keep one thing in mind that irrespective of the date of your opening of the account, the deposit restrictions and maturity is always based on Financial Years.

      1. Dear Sir

        Thanks for your prompt reply and for putting up such a nice blog about the scheme. Your article really helps.
        I will avoid the mistake next time.

        Regards
        Swarup

  29. I have started account on 29 th December .When 1 year deposit period end ?.on 31 St March 2020 or 29 Dec 2020?

  30. I m a army person, may I open a ssy account for my daughter? And wht hpn with my SSY ACT, if I will die after 4-5 yrs of this.

  31. Hello Sir,

    What happens to the SSY account when there is a change in residency status of the account holder (Both Parent and Child become citizens of another country). Should we immediately notify the bank ? Is premature closure permitted for NRIs just like you have mentioned i the 2019 PPF rule changes? At what stage it stops earning interest.

    Thank you

      1. Hello Sir,

        Does the banks generally give the option to make a FD or PPF in name of the girl child with lockin period of same as SSA of they become citizens of another country or move abroad?

        Thank you!

  32. Dear sir
    Mene 2 yaer pahle apni beti ke nam per sukanya yojna account open kiya tha jisme mene 10000 rs deposit kiy the ab meri financial condition kharab hai isliy me account closed karna chahta hu so please help me

  33. Hi,
    What is the limit of investment for 2 daughter. Is it capped at 1.5L together, or I can invest 1.5 L for each daughter.

    Thanks.

  34. Thanks for providing information on SSY. I opened SSY account when my daughter was 10 yrs, how long can I continue with deposit to get interest….till 15 yrs from opening the account or till my daughter completes 15 yrs. I inquired at multiple banks but no one has complete knowledge. Please help with exact deposit tenure and also government website link that contain this information which I can present to bank officials.

    1. Dear Sachin,
      Maturity is at your daughter’s 21 years of age. However, you are allowed to deposit up to 14 years (normally). But in your case your daughter is 10 years already, you can deposit up to her 21 years of age. Hence, it is whichever is earlier. Means either 14 years completion or 21 years completion. In your case it is 21 years of girl child is early. Hence, you can deposit up to her 21 years of age.

  35. After 15 years of deposite, Who will be legal owner of that amount?
    Depositor (father/mother) or daughter (jiske naam par account h)???

  36. Dear Sir,
    I have paid 13 monthly instalment to ssy and now I wish to discontinue.
    Please advice how I withdraw money earliest?

    1. Dear Prem,
      Refer below lines:-
      Yes, it is allowed in case of death of account holder i.e. girl child. The balance along with interest earned will be payable to guardian. Apart from this if, you are really facing financial difficulties and Government satisfy with such hardship, then it may allow premature closure. Examples of such extreme difficulties are like medical support in life-threatening diseases, death, etc.

  37. What is frequency of credit of interest.I opened account in Feb 2019 deposited multiple times.But interest has been credited only for my first deposit which I made in Feb.Is the interest credited quarterly or yearly basis?

  38. I have opened SSY account for my daughter on 15th Sep 2018. Now when is the next year term starts. Is it from Financial year(Apr 2019) or exact one year after the account opening date?

      1. Thank you for your quick reply. You mean everybody have to pay before Apr 10 of every year if we are paying yearly once to get full year interest?

          1. How is the interest calculation done? I know you have mentioned yearly but then what is logic of investing before 10th of April for a financial year. What if i do 2 deposits of Rs.50000 in a year. Will the interest calculation differ then?

            1. Dear Saurabh,
              Assume that you invested before 10th May 2020, then your money will earn the interest for 11 months. If you invested after 10th May 2020, then your will earn 10 months’ interest.

  39. Sir,
    (1) Can I contribute some funds to the SSY A/C of my
    niece, as a gift within the limit of Rs.150,000/- and,
    (2) Is it legal/permissible to deposit funds at different
    rates for different months within a financial year and,
    at different rates for different financial years ?
    With kind regards,
    Vijay.

  40. Your Post was very nice Basu. I would have landed up in investing more than 150000 rs in Sukanya account. Your post helped me not to do this error. Thanks for your help. God bless you.

  41. Sir,
    I have 3 daughters. I opened 2 Accounts in my Ist and 2nd daughter’s name in SBI (Total of Rs. 2L each accounts in last 3 years). After that my wife opened another account in the Post office in the name of my 3rd daughter (Rs. 1.35L in last 2 years). Is it permissible to open 3 accounts in the name of husband and wife. If not what is the option for the already operating 3rd account.

      1. Dear sir,
        Thanks for your reply. If I the bank objects for closing the account, Will it be able to withdraw the funds in the future ?, ie after the maturity.

  42. Sir,
    This is Satish from Bangalore. My friend and his wife have inadvertently opened separate SSA account for their only girl child. How to close one account & continue the other.

  43. dear sir, please suggest, my ssy account related to gujrat, now am in lucknow up. could i deposit this yr premium from any post office at lucknow..?
    without tfr the acct.

  44. I amsr citizen aged 70 yrs.
    would like to have ur guidance to choose the best options for investment.
    Majority of my investment is with bank FDs

  45. Hi Basu
    These schemes are not at all attractive. As they have long waiting period. In your opinion which are the best investment instruments for non-senior citizens?
    For senior citizens I always prefer scss is all time favt. But for non seniors could not find good interest returning instruments for short periods say 1 to 5years. Nsc is bit better but lacks liquidity.

  46. Hi Basu,

    I had opened SSY account 4 years back with 1k as opening deposit. But unfortunately, I could not deposit any money after that. Now, I would like to start depositing in this scheme for my daughter who is 11 yrs now. Please suggest if it make sense if i start now and what could be the returns on maturity if i starts now.

      1. Hello Basavaraj,
        My case is also same as mentioned by Sandy.
        I opened SSY account in june 2015 with 1k opening deposit in BOI. But couldn’t deposit any amount after that. Now I want to deposit the money regularly into the account.
        Bank is saying that your account is not yet deactivated and you can deposit the money. They are saying that in BOI, there is no process of reactivating the account.
        But I want the confirmation from the bank that I have reactivated the account and my account should not be considered as defaulter account henceforth. What should I do ? Is there some process ?
        (My main concern/worry is, if the account is not reactivated, and if I go on depositing the money for next say 10 yrs, at the time of maturity/withdrawal, the bank/govt should not say that your account was defaulter so you will get only the saving account’s interest and not the SSY interest)

        1. Dear Sandip,
          Issue is with Bank. If they don’t have a system, then let them modify to make sure that the rules can be followed properly. Let them show the proof that your account is still ACTIVE even after so many years of no contribution.

          1. Hello Basavaraj,
            Exactly.. Or else I am thinking, if the bank doesn’t respond then its better to transfer the account to some nearby Post office. I think the process of Post office is better than the banks in case of SSY accounts.. What’s your opinion abt this ?

  47. Sir, I have one doubt that my wife opened a SSA account of my daughter & she signature
    Guardian column.
    Therefore can i submit tax rebate in SSA accounts.
    Please give me reply.

  48. I am maxing out PPF already every year. Do you recommend having SSY account of my daughter and putting another 1.5L since the return is Tax-Free and higher than FD?

    Can my HUF invest in my daughter’s SSY and claim exemption under 80c?

  49. In SSA Account

    If 2 Daughter than Can Deposit 1.5 Lakh in both Account Separately or Total 1.5 Lakh in Both Account. Same Tax Benifit in both accounts or Single??

  50. Dear Sir,
    U have mentioned that interest will not be earned after completing 21 years if the account is still active. So, the previous years interest will be credited or not to the final amount?

    1. Dear Arindam,
      You can deposit Rs.1,50,000 in PPF and SSA. Therefore, in total you can invest up to Rs.3 lakh per year in these two accounts. However, you can claim the tax benefits of up to Rs.1,50,000 under Sec.80C.

      1. Sir, I am deposit ssy 1000 p/m. But last 4 month I am not deposit. What is the amount after penalty?

  51. Dear Sir,

    I have a confusion about SSA and PPF. I have a PPF account which I opened on 2012. Now I have opened a SSA account for my daughter last year. Now my question that can I deposit Rs. 1,50,000 individually in each account to get deduction under 80C on both account separately or only allowed jointly Rs. 1,50,000 for both account as a whole.

    Regards,
    Arindam Pahari

  52. My question is regarding transfer of Sukanya Samriddhi account from a post office to ICICI bank as it is easier to transfer money online to a bank. Will this reason be sufficient to transfer account?
    Do I need to go to Post office or bank for transfer?
    Can you elaborate the procedure for transfer?

  53. Hi Basu,

    Goal 1 : Retirement
    I am planning to have this plan to my debt component for my retirement which is 25 years from now. I am using EPF+VPF as my debt component & Equity funds (1 Large , 1 Mid, 1 Small) for this. However I am unable to increase my VPF more than 12% of Basic +DA due to some restrictions. But I need to invest more in debt component to rebalance my debt: equity( 60:40).In that case,

    1. Is it wise to have Sukanya Samruddhi as my retirement debt component?

    Goal 2 : Daughter’s Education
    10 years from now. my idea is to invest in Aggressive Hybrid Fund and understanding is my portfolio will be re balanced with Debt & equity with the help of a fund manager time to time.

    Queries:
    1. Is it okay to invest only one Aggressive Hybrid Fund? or shall I have more than one for diversification?
    2. or would you suggest to have a separate equity and debt again for this like my goal1?

    1. Dear Hari,
      This product is meant for girl child but not for the retirement corpus. In case you need further debt, then use debt mutual funds.
      1) Invest and diversify in debt and equity based on time horizon of the goal.
      2) It is best to separate debt and equity for clarity.

      1. Thanks Basu for your response, I will go with separate debt & equity allocation for this as well. Can I use the same Equity funds for this goal as well or separate Large & Midcap fund will do the trick? obviously I need to use debt funds(ultra short term) for this goal as I am unable to increase my EPF+VPF which are tagged to my retirement goal.

              1. As intrest calculated at yearly basis, so I should submit the amount in ssy account at start of financial year or I should submit the amount at end of the year. I mean what is beneficial for me to invest early or late.

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