The parents or legal guardian of the girl, from her birth’s time, can open Sukanya Samriddhi Yojana (SSY) account till she reaches 10 years of age. It has to be opened in the selected bank branches or nearby post office. However, during starting year, government provided a grace period of 1 year, till December 2015. Any girl child born between December 2003 and December 2004 had the liberty to get an account open till December 1, 2015. After that, there will be a maximum standard age limit of 10 years.
As a little girl will not be able to fulfill the formalities needed to open an account, so it is the duty of her legal guardian or parents to do the honor, on her behalf. You cannot open a SSY account for her sisters or brothers. In case, you are planning to open an account for her sister due to her father’s absence, you have the liberty to do so. However, there are some such cases available, which have not been made clear still, by the government.
A family has the right to open maximum two accounts under SSY for two individual girls. They do not have any right to open two accounts for a single child. In case, the 1st or 2nd birth gave twins, then the account can be opened for all 3 girls. A single parent is required to open an account for girl child. The father and mother cannot open two separate accounts for one girl child. So, the thumb rule is that, “one girl will receive one account under SSA.”
You have the right to open this account by just visiting your nearest post office. There are some selected bank branches, where you can try your luck, as well. You just have to check out sample form and fill your form up, accordingly, in the post office. After submitting the form with valid documents, you will receive passbook, which looks exactly like a savings passbook. However, while opening the account with banks, you have to wait a little bit, as these banks are yet to start open up for SSY accounts.
For opening an account with SSY plan, you have to provide accurate and legal birth certificate of your baby girl. Along with that, you need 2 passport photographs, along with your parent or guardian photo ID. Furthermore, you need address proof for opening an account with SSY plan. For the newborn babies, sometimes the names are not update. During such instances, you can enter XXXX in the name area. Or, you might wait for receiving your birth certificate, and plan for the account later.
Well, most of the time, people have confusion regarding monetary deposit in SSY account. Can you deposit money on yearly basis or monthly? Well, the minimum amount to be deposited in an account is 1000 bucks only. However, the maximum amount is restricted to 1.5 lakh. Now, the parent or legal guardian have the right to despot money from anywhere between 1000 rupees to 1.5 lakh in any month of the year. There is no such restriction regarding time limit.
The SSY account will mature after 21 years from the time, the account was opened. However, there is a clause associated with her marriage. If your daughter gets married before the age of 26, then the account will be closed on her marriage year only. You cannot access the account further. So, the maturity period will be either 21 years or the time when she gets married before that. You might need to download the excel calculator from online sites to get some ideas on returns after 21 years or 18 years.
PPF seems to be a good investment strategy, and you can invest in SSY too. SSY resembles more of less with PPF and seems to be a good option. If you ever get to exhaust your limit in PF, you still have a great option for your girl, thanks to the SSY account. You might even use PPF fund for self-serving, and reserve SSY for your little girl. By investing in both SSY and PPF, you have the liberty to save around 3 lakh rupees per annum, for your girl child.
You are free from any fixed deposit schedule, once you have started working with SSY account. You just need to invest a minimum amount of 1000 rupees per year, and it can reach up to 1.5 lakh, p.a. You can deposit this amount at any time of the year and in any amount, you want. You can either despot 100 in each month or go for larger amount, if you are willing to invest something around 1.5 lakh. You can make up the calculations beforehand, and start investing accordingly.
The girl child will receive the maturity amount. This amount is allotted for the girl, whose name has been used for opening the account. It is not going to be paid to the parent or legal guardian. It is going to be paid on culmination of any specified activities; whichever happens before. She can get the amount after 21 years, from the time the account was created. Or she might get the amount the year she plans to get married off.