Shortcomings of Sukanya Samriddhi Scheme

1. Lock in Period                                                                                                               

Sukanya Samriddhi Account is for long term investor only. Money deposited in this account matures only after 21 years. One needs to deposit money for 14 years under this account. Lock in period for 21 years is very high. If you are looking for short-term investment option you should not invest in this scheme.

2. No Online Facility

Another shortcoming of Sukanya Samriddhi Account is one cannot invest money online. One can invest money only by cheque, cash or DD. The government should think of enabling this account online as a part of Digital India movement.

3. Variable Interest Rates

Sukanya Samriddhi account offers 9.2% highest interest rate for FY2015-16, however, this interest rate is variable. Every year government will decide and declare interest rate. This variable interest rate may not beat inflation rate. Returns can be low compared to market-linked schemes.

4. No Premature Withdrawal

No premature Withdrawal is permissible under Sukanya Samriddhi Account. This makes scheme non-flexible in terms of offering liquidity.

5. Age Limit

The Sukanaya Samriddhi Account can only be opened for girl child up to 10 years of age. However, for FY 2014-15 one year relaxation is provided. This age limit should be at least 15 years.

6. No Loan Facility

This scheme does not offer loan facility. In case a financial position of parents is not good they can not avail loan facility against this account.

7. Account on the name of Girl Child

Sukanaya Samriddhi Account can be opened on the name of girl child only. This account can be operated by girl child only. In case girl child does not remain in control of parents it may create a problem.