If you are an NRI and want to open a Sukanya Samriddhi Account for your daughter, find out how to avail the full benefits of this scheme..

Every parent wishes to build a solid financial corpus for their daughter's secure future, higher education, and marriage. The Government of India's Sukanya Samriddhi Yojana (SSY) is one of the best and most popular options for this purpose. Currently, the scheme offers an impressive annual interest rate of 8.2%, which is significantly higher than that of many fixed deposits (FDs) and other savings schemes.

However, when it comes to Non-Resident Indians (NRIs), several questions and points of confusion arise regarding this scheme. Can an NRI open this account for their daughter? What happens if the parents move abroad after opening the account? Let us understand the answers to these questions and the relevant rules in detail.

Can NRI parents open an SSY account?
According to the rules of the Sukanya Samriddhi Yojana, NRI parents cannot open an SSY account. This scheme is specifically designed only for girls who are residents of India. If you or your daughter have acquired Non-Resident Indian (NRI) or foreign citizen (OCI/PIO) status, you cannot open a new Sukanya Samriddhi account in your daughter's name.

What happens if one becomes an NRI after opening the account?
This is a very common scenario. Suppose you were a resident of India when you opened the SSY account for your daughter, but a few years later, you moved abroad for a job or business and became an NRI. What happens to the account in such a case?

1. Previously, the rule required the account to be closed immediately upon becoming an NRI. However, the rules have now been relaxed. If the daughter or the guardian acquires NRI status after the account is opened, the account can continue to operate until its maturity (21 years).

2. It is mandatory to inform your bank or post office (where the account is held) within one month of any change in your or your daughter's residential status. 3. The most important condition is that the proceeds received upon maturity cannot be repatriated outside India; the payment will be made solely in Indian currency (Rupees).

**Significant benefits: 8.2% interest and tax exemption**
Currently, this scheme offers an annual compound interest rate of 8.2%. The government reviews these interest rates every quarter. The scheme falls under the 'Exempt-Exempt-Exempt' (EEE) category. This means that the amount invested (up to a maximum of ₹1.5 lakh per year) qualifies for a tax deduction under Section 80C of the Income Tax Act.

**Investment conditions**
The account can be opened any time from the daughter's birth until she turns 10 years old. In a single financial year, you can deposit a minimum of ₹250 and a maximum of ₹1,50,000. Deposits are required for a period of 15 years from the date of account opening, whereas the account matures after 21 years.

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