Every parent wants to secure the future of their daughter, no matter the place of their residence. The Sukanya Samriddhi Yojana appears to pose some special challenges and consideration with Non-Resident Indians. This government-backed savings plan has great benefits for Indian residents, but NRIs need to know the rules and requirements before they invest.

What is Sukanya Samriddhi Yojana?

Sukanya Samriddhi Yojana is a small savings government-based project that was introduced as part of the government initiative called Beti Bachao, Beti Padhao in 2015. The scheme allows any parent/legal guardian to open a savings account in the name of his girl child who is under 10 years. The account will be open until the girl attains 21 years of age or until the time the girl child gets married, whichever is earlier.

Key Features of SSY:

• Minimum Investment: The SSA minimum deposit requirement is just Rs. 250 per financial year

• Minimum Investment: SSA minimum deposit is only 250 per financial year.

• Maximum Investment: Per annum, a maximum of 1.5 lakh may be invested.

• Length of tenure: 21 years from account opening or marriage after age 18

• Tax Benefits: Triple tax exemption (EEE status) under Section 80C

Can NRIs Open a Sukanya Samriddhi Account?

NRIs cannot open a Sukanya Samriddhi account while residing outside India. According to the scheme's provisions, only resident Indian parents or legal guardians can open and maintain an SSA for NRI girl children.

The Official Rule:

If the girl child’s residential status changes to non-resident Indian (NRI) at any time after the Sukanya Samriddhi Yojana account is opened, the account must be closed and will not earn interest from the date of becoming non-resident. Only a resident Indian girl child can have an SSY account opened in her name; NRIs (parents or child) cannot open an SSY account until both the parent and child are resident Indians.

Important Restrictions: Only a resident Indian girl child can have an SSY account opened in her name; NRIs (parents or child) cannot open an SSY account until both the parent and child are resident Indians.

SSY Eligibility for NRI, OCI & PIO Families

Understanding the Sukanya Samriddhi Yojana NRI eligibility can be complex. Here's a detailed breakdown:

Note: If a girl child becomes a non-resident at any time after the account is opened, the account will be considered closed and will cease to earn interest immediately.

Sukanya Samriddhi Yojana Interest Rate

The Sukanya Samriddhi Yojana interest rate is one of the scheme's most attractive features. The government revises the rate quarterly.

The Sukanya Samriddhi Yojana interest rate for the quarter July–September 2025 (Q2 FY 2025-26) is 8.2% per annum, compounded annually. This is one of the highest rates given under small savings schemes which are supported by the government.

SSY Deposit Rules and Requirements

To have an active account, one needs to know the deposit requirements:

• Minimum Deposit: The SSA minimum deposit is Rs. 250 per financial year

• Maximum Deposit: Rs. 1.5 lakh per financial year

• Number of Deposits: Unlimited deposits allowed per year

Sukanya Samriddhi Yojana Withdrawal Rules

Sukanya Samriddhi Scheme withdrawal rules are as follows:

Partial Withdrawal for Higher Education:

• Eligibility: After the girl child turns 18 or passes 10th standard, whichever is earlier

• Withdrawal Limit: Up to 50% of the balance at the end of the previous financial y

• Payment Options: Lump sum or up to 5 annual installments

Premature Closure Conditions:

Sukanya Samriddhi Yojana withdrawal before maturity is permitted only under specific circumstances:

• Marriage: After the girl turns 18, closure can be requested between 1 month before and 3 months after marriage

• Death of the Girl Child: Full balance with interest paid to guardian upon submission of death certificate

• Medical Emergencies: Life-threatening diseases of the account holder

• Death of Guardian: Account can be closed prematurely

• Financial Hardship: Subject to approval with supporting documentation

Alternatives to SSY for NRIs

Since sukanya samriddhi yojana for NRI families face strict limits, many parents turn to other options that offer easier compliance, long term visibility and better control. Here is a clear and complete list of strong alternatives.

1. NRE Fixed Deposits

These are the best ways to deposit foreign income in India. Interest is free of tax in India, and the funds are fully repatriable while the period is flexible. It is a low-risk, steady-growth investment. NRE fixed deposits are a practical solution for NRIs who like simple and stable management of foreign earnings.

2. NRO Fixed Deposits

Meant for Indian sourced income like rent or dividends. Interest is taxable and repatriation requires basic documentation. A good choice when you want to keep Indian earnings organised. This helps maintain a clear financial record for all domestic transactions.

3. Mutual Funds Through NRI Accounts

These investments provide the same degree of flexibility as those made by resident investments, with the advantage of choosing asset classes that match your goals. It is ideal for creating long-term wealth through disciplined SIP-based investing. This is apt for NRIs wanting market-linked growth along with structured portfolio planning.

4. National Pension Scheme (NPS)

A long horizon plan mixing equity and debt. Comes with tax benefits and a retirement focused lock in. NRIs from specific countries are eligible.

5. Public Provident Fund (PPF)

NRIs are not permitted to open new PPF but the old ones are allowed to continue receiving deposits until maturity. Works with families that made investments prior to relocating to foreign countries.

6. Foreign Market Investment Plans

NRIs have the ability to invest into the foreign stocks, ETF, and local savings plans in their country of residence. These diversify risk and align with global education goals.

Conclusion

While the Sukanya Samriddhi Yojana for NRI families comes with significant restrictions, understanding these limitations helps you make informed financial decisions. The scheme's exceptionally favorable withdrawal rules, along with a minimum SSA deposit requirement of only  ₹250/-, make it a great choice for resident Indians.

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FAQs

1. Can I transfer my SSY account if I become an NRI?

No, if you or your daughter becomes a non-resident after account opening, the account will be closed and cease to earn interest.

2. What happens to my SSY account if I return to India?

If you had an account before leaving India and it was closed due to non-resident status, you cannot reactivate it. However, you can open a new account if your daughter is still below 10 years old.

3. Can my relative in India open an SSY account for my daughter?

Only parents or legal guardians can open SSY accounts. A relative living in India cannot open an account on behalf of NRI parents unless they have legal guardianship.

4. How many years do you need to pay for Sukanya Samriddhi Yojana?

Deposits are allowed only during the contribution period, after which the account keeps growing until it matures. It closes at full maturity or when the girl marries after turning eighteen.