Need a small amount of INR 250 for opening a Sukanya Samriddhi Yojana account

1. Need a small amount of INR 250 for opening a Sukanya Samriddhi Yojana account

You can open an SSY deposit with a minimum deposit of INR 250,  Maximum deposit amount can be up to INR 1.5 lakh. Do note that it is mandatory to make a deposit until 15 years from the date of account opening, failing which the account will go under ‘Account under default'.

2. The Triple Tax Benefits you cannot ignore

If the above reasons were not good enough, the scheme offers tax benefits that you just cannot refuse. 

A. Deposits up to INR 1.5 lakh is eligible for a deduction under Section 80C of Income Tax Act.

B. The interest earned on the deposit is tax-free. The interest is compounded annually. 

C. Even the amount you receive upon maturity is tax-free.

3. Attractive interest rates  is 7.6%

4. You only need to deposit for 15 years

You need not make any deposits after 15 years until the deposit matures, which is 21 years from the date of account opening. You will continue to accrue the interest on the deposit. 

5. Premature withdrawal allowed under special circumstances

After 5 years of maintenance of the Deposit Account, if the bank or post office finds that maintenance of the account is causing financial burden on the girl child for medical reasons or death of a guardian, premature withdrawal will be allowed. Premature withdrawal is allowed even in case of death of a guardian or parent.

You can also close the Account prematurely if the beneficiary is to get married after attaining the legal age of marriage of 18 years. (Intent of marriage should be notified a month before wedding of up to 3 months after the marriage).

6.Disadvantages of Sukanya Samriddhi Yojana

Lock-in period: The account is only useful if one is looking to invest for the long-term. It has a maturity of 21 years from the opening of the account. Maximum 2 Accounts: One can open only 2 Sukanya Samriddhi accounts. This is a drawback in case someone has 3 daughters.