Worried about the drawbacks of Sukanya Samriddhi Yojana? Sukanya Samriddhi Scheme has many useful features with which one can make a huge corpus for the education and marriage expenses of their girl children. But there are many disadvantages of Sukanya Samriddhi Account too.
Although the interest rate is highest among all savings schemes, but due to these drawbacks one can’t utilize that interest rate to get maximum benefit. However, you can get some amazing flexibility in SSA by opening this account. Also, the doubt related to income tax exemption is 100% clear now. Anyway let’s check out the Sukanya Samriddhi Account drawbacks and cons.
Few of the major drawbacks of Sukanya Samriddhi Yojana are:
- High lock-in period of 21 years
- Maximum number of accounts is limited
- Interest rate is not fixed
- Premature closure rules are not beneficial in short term
Now let’s check them in detail.
Sukanya Samriddhi Account Drawbacks
One of the major disadvantages of Sukanya Samriddhi Yojana is, this scheme has a very high lock-in period of 21 years. The deposited money matures only after 21 years from the account opening date. That means one can not consider this as a short term investment product. This could be a drawback as people can’t consider this product for short term goals.
The maximum number of accounts is also a problem. Per family max 2 account is possible, each girl one account. In case of a 3rd girl child as per Sukanya Samriddhi scheme rules it is not possible to open an account.
Although the current interest rate of Sukanya Samriddhi Account is 9.2%. But it is not fixed. Every year the interest rate will be reviewed and it may change accordingly. We have seen in case of PPF account the interest rate have come down drastically in last few years. So in future there is no guarantee that Sukanya Samriddhi Account will be able to attract people with this interest rate and this could be the biggest drawback of this scheme.
One can not operate Sukanya Samriddhi Account online in case it is opened in post office. This is one of the major Sukanya Samriddhi Yojana limitations. Every financial scheme should be accessed online to attract more people and access easily. May be in future Govt. will launch Sukanya Samriddhi Account online. You can now easily open SSA account bank and operate online.
The premature closure rules are also not beneficial from short term point of view. Mainly if you compare SSA with PPF account premature closure.
When will these Drawbacks of Sukanya Samriddhi Yojana be Fixed?
I think gradually these Sukanya Samriddhi Account limitations will be fixed. I hope many of these disadvantages will be rectified and may be some more attractive feature will get added under SSA scheme to make it more useful. By the time you can check the SSA excel based calculator and find out how much money you can accumulate at the time of maturity.
What do you think about these drawbacks of Sukanya Samriddhi Yojana? Please feel free to share your problems and scope of improvement for this scheme. Also don’t forget to hare this article with your friends and make them aware about the Sukanya Samriddhi Account drawbacks & disadvantages, before opening an account under this.