Can a saving account be converted to a Sukanya Samriddhi Account?
Sukanya Samriddhi Account is a special small saving account that can be opened by the parents or legal guardians of a girl child in her name for her financial security and independence when she grows up to become an adult. Launched under ‘Sukanya Samriddhi Scheme’, the account can be opened for any girl below the age of 10 years and born and residing in India.
The scheme offers a handsome interest rate of 9.1 per cent, which is even higher than the much popular Public Provident Fund (PPF) and offers additional benefit of tax exemption under section 80C of Income Tax.
With the launch of scheme in January 2015, a number of banks and post offices have been authorized to open Sukanya Samriddhi Account and a lot of querries have been already floating over internet for the details of the scheme and how the account can be opened. One such common query we have been getting from people is whether a normal saving account could be converted to Sukanya Samriddhi Account or not.
Well, the answer to this question is NO. Sukanya Samriddhi Account is opened under a special scheme and thus any other kind of saving account could not be converted to SSA. Also, an SSA can only be opened under the name of the girl child and it could never be a joint account.
It is more of a small saving plan than a normal saving account, since the money could not be withdrawn until the account matures after 21 years or at the time of the marriage or higher education of the girl child.
That means, even if the girl child or her parents or legal guardians already have a saving account in the same bank, they would still have to go through the account opening processes if they want to open an Sukanya Samriddhi Account for their daughter.
At the same time, there is not much of a hassle in getting a Sukanya Samriddhi Account opened in any of the authorized banks or post offices. You simple need the following documents along with the deposit money of Rs 1,000 and you would get the SSA opened for your daughter:
- Certificate of Birth of the girl child
- Identity proof of the parent or legal guardian of the account holder
- Address proof of the parent or legal guardian of the account holder
There is no other piece of documentation or verifications required for opening Sukanya Samriddhi Account. So opening an altogether another account for the purpose of financial security of your girl child should not be a problem for you.
Today when our lives are full of insecurities, we definitely need to consider the safety of our family, especially our daughters since a lot of money is required at the time of marrying them. Through Sukanya Samriddhi Account, you can make sure that you keep depositing whatever amount you have every month or even every week and rest assured that there is a lump sum amount already lying safe to take care of the future of your girl child.
Some Other Articles: