SSA: Five things to know about term deposit scheme for minor girls

1. SSA is a small savings scheme under which an account can be opened for the girl child at any time from her birth till the age of 10 in post offices or authorised branches of banks.

2. The minimum deposit is Rs 1,000 and maximum is Rs 1,50,000 in a financial year. The deposit has to be made till the end of 14 years from the year of opening of an account.

3. The account can be closed after the girl turns 21 years or after completion of 18 years provided that she is married.

4. The rate of interest will be notified yearly by the government, which will be compounded. For 2014-15, the deposit will fetch an interest of 9.1% per annum.

5. The amount deposited towards Sukanya Samriddhi Account is deductible under Section 80C upto Rs 1.5 lakh.



(The content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta)