Sukanya Samriddhi Yojana

Introduction

Sukanya Samriddhi Yojana (SSY) is a government-backed small savings scheme under the Beti Bachao, Beti Padhao initiative. It encourages parents to build a financial corpus for their daughter’s future education and marriage expenses.

This scheme was launched in January 2015, offering splendid interest rates, tax benefits and one of the safest ways of investment in a girl child in India.

Key Features of Sukanya Samriddhi Yojana

• Eligibility Criteria

1. The scheme is open only to girl children who are 10 years old or younger.

2. A maximum of two accounts can be opened per family (one for each girl child).

3. A third account is allowed only in the case of twin girls as a second birth or triplets.

• Account Opening

1. You can open in every Post Office or authorised banks (such as SBI, ICICI, HDFC, etc.).

2. The girl child grant is subject to the following documents: Birth certificate of the girl child, and identity/address proof of the parent or guardian.

• Deposit Rules

1. Minimum deposit: ₹250/ Year

2. Maximum deposit: ₹ 1.5 Lakh /Year

3. Deposits can be made for 15 years from the date of account opening, while the account continues to earn interest until maturity.

4. The account becomes mature after 21 years from the date of opening or at the time of the girl's marriage (age of 18 plus ), whichever is earlier.

• Interest Rate

1. Interest is compounded annually and is not fixed; the government revises it every quarter.

2. For example, the interest rate for Q1 FY 2025-26 is 8.2% per annum (as of July 2025).

3. The interest earned is tax-free.

• Tax Benefits

1. Investments made are eligible for tax deduction as indicated in Section 80C of Income Tax Act.

2. It is a tax-free interest and maturity amount as such it falls under the EEE (Exempt-Exempt-Exempt) kind of investments.

Maturity & Withdrawal

• Premature Withdrawal

1. Allowed only under specific conditions:

1. Up to 50% of the balance can be withdrawn after the girl turns 18 years, for education expenses.

2. An account can be closed prematurely in the event of the death of the account holder, medical emergency, or marriage after 18 years.

• Maturity

1. After 21 years, the account matures, and the full amount (principal + interest) is paid out to the account holder.

2. When the girl gets married at the age of over 18, the account is automatically closed.

Benefits of Sukanya Samriddhi Yojana

• Safe and secure: Government of India backed.

• Applicable at a high interest rate, as compared to fellow small savings schemes.

• Promotes economic virtue by virtue of storage.

• Assists in giving a girl child higher education and marriage expenses.

• Gives tax free returns under Section 80C.

Documents Required

• The girl child birth certificate

• Parent or the guardian identity proof (Aadhar Card/PAN Card)

• Address proof (utility bills, Aadhaar, passport, and so on)

• Passport-size photographs

How to Open an SSY Account

• Just go to your post office or bank.

• Complete an SSY Account Opening form.

• Provide the KYC documents needed.

• Deposit the minimum of the first amount (250 INR.)

• Their account will be opened and a passbook given out.

Conclusion

Sukanya Samriddhi Yojana is one of the most trusted schemes for securing a girl child’s future. With attractive returns, tax benefits, and government backing, it is a highly recommended savings plan for parents who wish to invest in their daughter’s long-term education and well-being. Starting early ensures a substantial corpus when she grows up.

Disclaimer

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