Shortcomings of Sukanya Samriddhi Account

The Sukanya Samriddhi Account (SSA) offers several benefits aimed at securing the future of a girl child by helping cover education and marriage expenses. It can be opened at any commercial bank authorized by the Reserve Bank of India or at a post office. The scheme currently provides one of the highest interest rates among small saving schemes in India.

However, despite its advantages, the Sukanya Samriddhi Account also has some important drawbacks that you should consider before investing. Understanding these shortcomings will help you make a better decision and ensure that you use the scheme effectively.

Disadvantages of Sukanya Samriddhi Account

• Long Lock-in Period The account matures only after 21 years from the date of opening. This makes it unsuitable for short-term goals. If you're looking for flexible or shorter investment options, this scheme may not be ideal.
• Interest Rate is Not Fixed Although the current interest rate is attractive (9.2%), it is subject to change. The Government of India reviews the rate annually and may adjust it based on economic conditions. If the rate decreases in the future, the returns may not remain as beneficial.
• Limit on Number of Accounts A family can open only two Sukanya Samriddhi Accounts. If you have more than two daughters, you won’t be able to open an account for the third child, which can be a limitation for larger families.
• No Online Account Management There is currently no option to operate a Sukanya Samriddhi Account online. The lack of digital access can be inconvenient for many users who prefer managing their finances online.
• Restricted Withdrawal Options While partial withdrawals are allowed, they can only be made once the girl reaches 18 years of age. This limits the use of funds in emergencies or other short-term needs.