Introduction
Sukanya Samriddhi Yojana (SSY) is a government-backed small savings scheme launched in 2015 under the “Beti Bachao, Beti Padhao” initiative. It was specifically designed to encourage parents to secure the financial future of their girl child by saving for her education and marriage. The scheme offers attractive interest rates, tax benefits, and a long-term savings plan with guaranteed returns.
Who Can Open an SSY Account?
An SSY account can be opened by the parents or legal guardian of a girl child. The girl must be below 10 years of age at the time of account opening. Each girl child can have only one account, and a family is allowed to open accounts for up to two girls. In special cases, such as twins or triplets, more accounts may be permitted.
Application Process
To open an SSY account, parents or guardians need to visit any authorised bank or post office. The process involves filling out the application form and submitting required documents such as the girl child’s birth certificate, proof of identity, proof of residence, and photographs. An initial deposit must be made to activate the account. Deposits can later be made through cash, cheque, demand draft, or online transfer, depending on the institution.
Interest Rate in Sukanya Samriddhi Scheme
The interest rate in the Sukanya Samriddhi Scheme is revised by the government every quarter. Generally, it is one of the highest among small savings schemes. The amount deposited earns compound interest annually, which significantly boosts the maturity value, creating a sizable corpus for education or marriage expenses. The minimum annual deposit is ₹250, and the maximum permissible deposit is ₹1,50,000. Contributions must be made for 15 years from the date of account opening. Even if deposits stop after this period, the account continues to earn interest until maturity. Deposits can be made in multiples of ₹50, giving flexibility to parents with varying income levels. The interest rate under Sukanya Samriddhi Yojana is set by the Government of India and revised quarterly. As of July–September 2024, the scheme offers an 8.2% annual interest rate, compounded yearly. This makes it one of the highest-yielding small savings schemes available.
Tenure and Maturity
The account matures after 21 years from the date of opening or at the time of the girl’s marriage after she turns 18, whichever comes earlier. This ensures that funds are available for higher education or marriage expenses at the right time. When the girl turns 18 or completes her 10th standard, up to 50% of the account balance can be withdrawn to meet education expenses. Full withdrawal is permitted upon maturity or marriage after 18. In case of the account holder’s death, the accumulated amount is paid to the guardian or nominee.
Application Form
Complete Details
Key Benefits
SSY provides long-term financial security for the girl child, with guaranteed returns due to its government backing. The high rate of interest ensures significant corpus accumulation over the years. Additionally, the scheme inculcates a savings habit among parents while providing attractive tax benefits, making it both secure and financially rewarding. The account cannot be kept open indefinitely. It must either be closed upon maturity or when the girl gets married after turning 18. Missing the annual minimum deposit leads to account default, which can be revived with a penalty. Also, since the account is for the long term, funds remain largely locked in until the girl turns 18. Sukanya Samriddhi Yojana is one of the best savings schemes for parents who wish to secure their daughter’s future. Its high interest rates, tax benefits, and long-term growth potential make it an excellent financial planning tool. Opening an SSY account early maximises benefits, ensuring that the girl child’s dreams for education and marriage are well supported.
