Sukanya Samriddhi Yojana: 5 common SSY mistakes that may affect your returns

SSY or Sukanya Samriddhi Yojana is one of the popular government-backed investment schemes, especially launched for the girl child. Parents or legal guardian can open their daughter's account at any post office or authorised bank. SSY offers interest on the investment, and currently it is 8.2 per cent per annum. The government reviews and updates the interest rate every quarter. In a single SSY account, up to Rs 1.5 lakh can be deposited every year and tax benefits are also available under Section 80C.

The scheme was launched under the government's campaign 'Beti Bachao, Beti Padhao'. If you are planning to open an Sukanya Samriddhi Scheme account, you should avoid these five common mistakes that may affect your returns.

1- Delaying installment

The interest on your deposit is calculated between the 5th day and the end of every month. It is based on the lowest balance. Therefore, if you invest the money on or before the 5th of the month, it can help maximise interest earnings.

2- Minimum annual deposit

Rs 250 per annum must be deposited to SSY account in a year to keep it active. If you miss depositing the minimum amount, your child's account will be inactivated. However, it can be activated with the prescribed penalty.

3- Depositing more than the limit

The maximum deposit limit is Rs 1.5 lakh per annum. If you think you deposit more than this in a year, that extra amount won't get any interest. Therefore, it is advisable to use that money somewhere else.

4- Closing account before maturity

In an SSY account, you invest for 15 years but stay invested for 21 years. This means your account matures in 21 years from the date of opening. You can close the account before maturity under certain conditions, such as the account holder's death. If you do that without any reason, you may not achieve your long-term financial goals.

5- Nominee name

You must add the nominee's name and keep updating the information as and when required. It helps in the settlement of the claims.

FAQs

Is the interest rate on SSY fixed?
No, it is reviewed and updated every quarter by the government.

Can I open more than one account for my daughter?
No, only one account is allowed under one girl child's name.

Can I change the deposit amount every year?
Yes, you can change the amount between Rs 250 and Rs 1.5 lakh per annum.

Can I extend the account after 21 years?
No, the account matures upon the girl child's marriage or after 21 years.

Can my daughter operate her account by herself?
Yes, if she is 18 years old, she can manage her account.