Sukanya Samriddhi Account(SSA) has many useful features with which one can make a huge corpus for their girl child’s education and marriage expenses. But there are many Sukanya Samriddhi Account drawbacks or disadvantages too.
Although interest rate is highest among all savings scheme but due to these drawbacks one can’t utilize that interest rate to get maximum benefit. But one can get some amazing flexibility by opening this account. Anyway let’s check out the Sukanya Samriddhi Account drawbacks.
The doubt related to income tax exemption is 100% clear now. I have removed that point which I have included in this list.
Sukanya Samriddhi Account Drawbacks
- Sukanya Samriddhi Account 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 opened in post office. This is one of the major disadvantage of this scheme. 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 is also not good from short term point of view. Mainly if you compare SSA with PPF account premature closure.
These are the few Sukanya Samriddhi Account drawbacks which I think will be gradually rectifying. I hope many of these disadvantages will be rectified and may be some more attractive feature will add under SSA scheme to make it more useful. By the time you can check out the SSA excel based calculator and check how much money you can accumulate with SSA account.
What do you think? Share your problems & scope of improvement for this case as per you?