Can NRIs open Sukanya Samriddhi Yojana account offering 8.2% interest rate?

The Sukanya Samriddhi Yojana (SSY) is a government-backed small savings scheme designed to help parents build a corpus for their daughter's future education and marriage expenses. However, not everyone is eligible to open an account. The scheme has specific rules regarding the child's age, residency status and who can operate the account.

Though non-resident Indians (NRIs) can invest in several financial products in India, including fixed deposits, National Pension System (NPS) and mutual funds, they are not eligible to invest in every scheme. Certain investments have specific eligibility conditions that do not permit NRI participation.

Who is eligible to open a Sukanya Samriddhi Yojana account?

To open a Sukanya Samriddhi Yojana account, the following conditions must be met:
The girl child must be an Indian resident at the time the account is opened.
The account can be opened by either the mother, father or a legal guardian on behalf of the girl child.
The account can be opened only for a girl child who has not attained the age of 10 years on the date of opening the account.

Can NRIs open a Sukanya Samriddhi Yojana account?

As per the India Post website, only individuals who are resident citizens of India can invest in Sukanya Samriddhi Yojana. NRIs cannot open a Sukanya Samriddhi Yojana account.

Sukanya Samriddhi Yojana tax benefits

Contributions made to the Sukanya Samriddhi Yojana qualify for tax deductions under the Old Tax Regime. Investors can avail a deduction of up to Rs 1.5 lakh under Section 80C. Investments in Sukanya Samriddhi Account enjoys triple tax benefits as tax is exempt on deposit, interest earned and the maturity amount.

How the Sukanya Samriddhi Yojana works

Once a Sukanya Samriddhi Yojana account is opened, deposits can be made for 15 years. However, the account itself remains active for 21 years from the date of opening, allowing the invested money to continue earning interest even after contributions stop.

SSY interest rate

One important factor parents often overlook is that the SSY interest rate is reviewed by the government every quarter and is not permanently fixed. The current rate is 8.2% p.a.

What happens if parents miss SSY contributions?

Missing SSY contributions for a few years does not permanently close the account, but it can still affect long-term returns.
If a minimum deposit Rs 250 is not made in an SSY account in a financial year (FY), the account will be treated as a defaulted account.


The account can be revived at any time within 15 years from the date it was opened by paying a Rs 50 penalty for each default year, along with the minimum annual deposit for those missed years.

SSY withdrawal rules

Up to 50% of the account balance can be withdrawn for the girl's education after she turns 18 years old or passes Class 10, whichever comes first.
Money can be withdrawn either as a lump sum or in annual instalments for up to five years. The withdrawal amount is limited to the actual education expenses, such as admission fees and other charges, as mentioned in the admission offer or fee slip issued by the educational institution.