5 things to know before investing in Sukanya Samriddhi Yojana (SSY): Eligibility, documents required and more

Families with a girl child under the age of 10 are increasingly opting for SSY accounts. SSY enjoys a relatively higher interest rate and sets aside a corpus that can be used for the daughter’s education or marriage. The account also enjoys tax-free maturity and deduction under Section 80C of the Income-tax Act, 1961. It can be opened at any authorised bank or post office branch.

Eligibility for opening account:
SSY account can be opened only by the parents or legal guardians of girl children less than 10 years old. A maximum of two accounts per family are permitted, with an exception for twins born the second time, allowing for a third account.

Documents needed:

The following documents are required for opening the SSY account:

• The SSY account opening form.
• The beneficiary's (daughter's) birth certificate.
• Address proof of the guardian or parents.
• ID proof of the guardian or parents.

Submission of form:
Once the SSY account opening form is filled, along with required documents and photographs, it can be submitted with an initial contribution amount that can range from Rs.250 to Rs.1.5 lakh.

Tenure of deposit:
Deposits to the SSY account can be made annually, with a minimum of Rs.250 and maximum of Rs.1.5 lakh. The maturity period is 21 years from the date of opening the account, or on marriage after the girl turns 18.

Points to note

• Once the account opening is completed, deposits can be made using online banking.
• Failure to make annual deposits can result in the account being classified as account under default.
• Reactivation is possible by paying a fine of Rs.50 for each year that the deposit was not made, up to 15 years from the opening of the account.

Content courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.