A government-backed savings scheme for the girl child, Sukanya Samriddhi Yojana (SSY), has some conditions attached to how many accounts one is permitted to open. Parents must know if they can open more than a single account when they have two or more daughters.
Opening accounts for more than a single child
The Sukanya Samriddhi Yojana allows the parents or guardians to open one account per girl child. Two accounts may be opened under the scheme in a family subject to the condition that there are two daughters. Therefore, if you have two daughters, you can very well open two separate SSY accounts, one for each of them.
Exception in case of twins or triplets
The rules also give provisions for exceptional cases such as multiple births. In case a mother delivers twin girls, or triplets, and subsequent to the first girl child, then more than two multiple accounts can be opened. The exception is so that none of the children will be deprived of the scheme by virtue of their birth circumstances.
Deposit limits remain static
Even if two SSY accounts are opened, the overall maximum deposit across all accounts remains ₹1.5 lakh per year of the financial year. Parents may opt to divide this amount between the accounts based on their economic strength and future needs. At least ₹250 must be put into each account every year.
Why this is important for long-term savings
The Sukanya Samriddhi Yojana offers one of the highest small savings scheme interest rates at 8.2 percent annually. With tax benefit under Section 80C and tax-exempt maturity proceeds, it is a valuable instrument in building a sound financial base for daughters' higher education and wedding expenses.
Parents' key takeaway
Yes, you can open two Sukanya Samriddhi accounts if you have two daughters, but the combined annual limit of deposit is ₹1.5 lakh. If parents plan the deposits wisely, they can maximize the returns with the assurance that both the children can get an equal share under this long-term government-sponsored savings scheme.
FAQs
1. Can grandparents open Sukanya Samriddhi accounts for their granddaughters?
No. Only the parents or a legal guardian of the girl child are permitted to open and operate the account. Grandparents can only contribute indirectly by giving money to the parents or guardian for deposits.
2. What happens if a family mistakenly opens more than two accounts?
If more than the permitted number of accounts are opened, the extra accounts will be considered invalid. Deposits made in such accounts will be returned without any interest, so it’s important to follow the rules.
3. Can the annual ₹1.5 lakh deposit limit be claimed as a tax deduction for both accounts?
Yes, the combined deposit of up to ₹1.5 lakh across both accounts qualifies for deduction under Section 80C of the Income Tax Act. However, the limit is overall and not per account, meaning you cannot claim ₹1.5 lakh for each child separately.
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