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Reactivating an Inactive SSY Investment Account: A Comprehensive Guide

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  • Post published:December 1, 2023
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Reactivating an Inactive SSY Account

Investing in government-backed savings programs, such as the Sukanya Samriddhi Scheme (SSY), is a prudent step toward securing a bright financial future for your child. However, instances of accounts going inactive due to missed contributions can be a cause for concern. In this article, we will delve into the unique features of the SSY, the reasons for its popularity, and a step-by-step guide on how to reactivate an inactive account.

Sukanya Samriddhi Scheme (SSY)

The Sukanya Samriddhi Scheme is a government-sponsored savings initiative designed specifically to safeguard the financial future of girls. One of its key attractions is the high annual interest rate of 8%, compounded annually, surpassing the rates offered by many other savings schemes. Additionally, the scheme provides tax advantages under Section 80C of the Income Tax Act, making it an appealing option for many investors.

Extended investment horizon, flexibility in deposit amounts (ranging from ₹250 to Rs. 1.5 lakh annually), and easy initiation at post offices or bank branches contribute to its popularity among parents planning for significant expenses like education or marriage.

Reactivating an Inactive SSY Account

Despite the numerous benefits, SSY accounts can become inactive if the minimum annual deposit is not met. Reactivating such an account involves a few straightforward steps:

  1. Visit the Initial Branch: Head to the post office or bank branch where the SSY account was originally opened.
  2. Submit a Written Request: Submit a written request detailing the revival of the account, including essential information such as the account holder’s name, account number, and reasons for the default.
  3. Clear Penalties and Arrears: Settle the necessary penalty and arrears, consisting of a ₹50 penalty for each year of default and the minimum annual deposit amount (₹250) for each year of default.
  4. Account Reinstatement: Upon payment of the penalty and arrears, the account will be reinstated, allowing the account holder to resume making deposits.

Additional Considerations:

  • Three-Year Inactivity Limit: An SSY account can be revived only if it has been inactive for less than three years.
  • Forfeiture after Three Years: If the account remains inactive for more than three years, it loses eligibility for revival, and the remaining balance is forfeited and transferred to the government.
  • Six-Month Grace Period: Failure to revive the account within six months of becoming inactive leads to forfeiture.

The Benefits of SSY:

The Sukanya Samriddhi Scheme not only offers assured returns but also shields investors from market fluctuations. The power of compounding ensures that interest is earned not only on the principal amount but also on the accumulated interest, potentially leading to substantial profits over time.


Investors seeking a secure and government-backed investment option for their child’s financial future should consider the Sukanya Samriddhi Scheme. Understanding the steps to reactivate an inactive account ensures that the benefits of this scheme can be fully realized. By staying informed and proactive, investors can continue to build a significant fund for their child’s future education, marriage, and overall financial security.


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