Sukanya Samriddhi Yojana: 7 essential questions to ask your bank before opening an account

If you're considering opening a Sukanya Samriddhi Yojana (SSY) account for your daughter, it’s crucial to be well-informed. This government-backed savings scheme offers numerous benefits, including attractive interest rates and tax exemptions under Section 80C of the Income Tax Act, 1961. Below, we outline the essential information you should gather before heading to the bank.

Key Information to Ask Your Bank

Before you open an SSY account, make sure to ask these seven important questions to your bank or post office:

What Documents Are Required?

You need to fill out the SSY account opening form and provide necessary documents, including your daughter’s birth certificate, identity proof, and a recent passport-sized photograph.

What is the Minimum and Maximum Deposit?

The account allows a minimum deposit of Rs 250 and a maximum of Rs 1.5 lakh in a financial year. Be sure to clarify any additional deposit requirements.

Who is Eligible to Open an Account?

Only parents or legal guardians of a girl child under the age of 10 are eligible to open an SSY account.

Can You Open Multiple Accounts?

Families can open up to two accounts for two daughters. In the case of twins, you may open a third account.

What is the Deposit Period?

Deposits can be made for 21 years from the date of opening the account, providing a long-term saving option for your child’s future.

What is the Current Interest Rate?

Accounts opened between October 1, 2024, and December 31, 2024, will earn an interest rate of 8.2%, compounded annually.

What Happens If You Miss a Yearly Deposit?

If you fail to deposit the required amount annually, the account will be marked as 'Account Under Default.' You can reactivate it by paying a penalty of ₹50 per year, with reactivation allowed up to 15 years after opening.

How to Open a Sukanya Samriddhi Account

You can open an SSY account at any authorised bank branch or post office. While online account opening is currently not available, you can set up automatic transfers through net banking once the account is established.

Opening a Sukanya Samriddhi Yojana account is an excellent way to secure your daughter’s financial future. By ensuring you ask these critical questions, you can make an informed decision and maximises the benefits of this government scheme. Whether you visit a bank or a post office, being prepared will help you navigate the process smoothly.