Sukanya Samriddhi Yojana (SSY) is a small savings scheme for the education and marriage of a girl child in India. The scheme launched in January 2015 under the campaign “Beti Bachao, Beti Padhao” aims to improve girls’ children’s welfare and promote gender equality. This scheme inspires parents or guardians to save for their girl child’s future expenses and secure their financial future.
In this article, I will discuss the Sukanya Samriddhi Yojana benefits, features, eligibility criteria, documents required, and other details of the Sukanya Samriddhi Yojana.
Table of Contents
Features of the Sukanya Samriddhi Yojana
The Sukanya Samriddhi Yojana has the following features:
- Account Opening: The account can be opened in the name of a girl child by her parent or guardian before the child turns 10 years old. One family can open one account for each girl child and up to two accounts. However, in the case of twins/triplets, girls birth more than two accounts can be opened.
- Minimum and Maximum Deposit: The minimum deposit amount required to open an account is Rs. 250, and the maximum deposit amount allowed per annum is Rs. 1.5 lakh (in multiple of Rs.50).
- Frequency of deposit: Lumpsum or multiple, the total deposit in a financial year should not exceed Rs. 1.5 lakhs.
- Maturity Tenure: The account matures on the completion of 21 years from the account opening date. Many need clarification about whether it’s 21 years of the child or 21 years from the account opening. As it is suggested to open the SSY account immediately on the birth of a girl child, that is why it is assumed that the account matures when the girl child attains 21 years, and that’s why the confusion. I hope this clarifies your doubt.
- Premature account closure: Premature account closure is allowed after 5 years of account opening under certain circumstances, such as
- 🔹On the death of the account holder
- 🔹On medical grounds
- 🔹On the death of the guardian by whom the account operated
- Interest Rate: The interest rate on the deposits is fixed by the government every quarter. The current interest rate is 8% per annum (with effect from 01-04-2023 ), compounded annually. Interest gets credited to the account at the end of each Financial year. The interest rate is higher than most other savings schemes, making it an attractive investment option.
- Tax Benefits: The deposits made in the scheme are eligible for tax benefits under section (u/s) 80C of the Income Tax Act. The interest earned, and the amount withdrawn on maturity are tax-free.
- Withdrawal: The amount deposited can be withdrawn on maturity or used for the girl child’s education or marriage. Up to 50% of the balance can be withdrawn after the girl child turns 18, provided she is pursuing higher education. In case of the account holder’s death, the balance is paid to the nominee.
- Closure on maturity:
- 🔹After completing 21 years from the account’s opening date.
- 🔹At the time of marriage of the girl child after attaining the age of 18 years.
Sukanya Samriddhi Yojana Interest Rate History Since 2015
| Period | Rate |
| April 2023 – June 2023 | 8.0% |
| Jan 2023 – Mar 2023 | 7.60% |
| Oct 2022 – Dec 2022 | 7.60% |
| July 2022 – Sept 2022 | 7.60% |
| April 2022 – June 2022 | 7.60% |
| Jan 2022 – March 2022 | 7.60% |
| Oct 2021 – Dec 2021 | 7.60% |
| July 2021-Sep 2021 | 7.60% |
| April 2021-June 2021 | 7.60% |
| Jan 2021-March 2021 | 7.60% |
| Oct 2020-Dec 2020 | 7.60% |
| July 2020-Sep 2020 | 7.60% |
| April 2020-June 2020 | 7.60% |
| Jan 2020-March 2020 | 8.40% |
| Oct 2019-Dec 2019 | 8.40% |
| July 2019-Sep 2019 | 8.40% |
| April 2019-June 2019 | 8.50% |
| Jan 2019-March 2019 | 8.50% |
| Oct 2018 – Dec 2018 | 8.50% |
| July 2018 – Sep 2018 | 8.10% |
| April 2018 – June 2018 | 8.10% |
| Jan 2018 – March 2018 | 8.10% |
| Oct 2017 – Dec 2017 | 8.30% |
| July 2017 – Sep 2017 | 8.30% |
| April 2017 – June 2017 | 8.40% |
| January 2017 – March 2017 | 8.50% |
| Oct 2016 – Dec 2016 | 8.50% |
| July 2016 – Sep 2016 | 8.60% |
| April 2016 – June 2016 | 8.60% |
| 2015-16 | 9.20% |
| 2014-15 (from Jan 2015) | 9.10% |
Sukanya Samriddhi Yojana Benefits
The Sukanya Samriddhi Yojana offers several benefits to the girl child and her parents or guardians:
- Financial Security: The scheme provides financial security to the girl’s child and helps meet her future expenses, such as education and marriage.
- High-Interest Rate: The interest rate on the scheme is higher than most other savings schemes, making it an attractive investment option.
- Tax Benefits: The deposits made in the scheme are eligible for tax benefits under Section (u/s) 80C of the Income Tax Act. The interest earned, and the amount withdrawn on maturity are tax-free.
- Easy Account Opening: The account can be opened at any authorized bank or post office with minimal documentation and can open online.
- Flexibility: The scheme offers flexibility in terms of deposit amount and withdrawal.
Eligibility Criteria for Sukanya Samriddhi Yojana
The following are the eligibility criteria for opening a Sukanya Samriddhi Yojana account:
- Only one account can be opened for each girl child.
- The girl child should be a resident of India.
- The parent or legal guardian of the girl child can open the account.
- The girl child should be below 10 years of age at the time of opening the account.
- The account can be opened for up to two girl children.
📖Must Read: All about Mahila Samman Savings Certificate 2023
Documents Required for Sukanya Samriddhi Yojana
- Sukanya Samriddhi Yojana account opening form.
- The birth certificate of the girl child.
- The ID proof and address proof of the depositor.
- A medical certificate, in case multiple children are born under one birth order.
- Any other documents that the bank or post office requests.
Should you invest in Sukanya Samriddhi Yojana?
Sukanya Samriddhi Yojana is a beautiful small savings instrument and completely safe as it bears a sovereign guarantee of the Government of India; in fact, all small savings are safe for the same reason.
It is a must-have instrument if you believe in the power of compounding and long-term investing and are clear on your girl child’s education and marriage goal. SSY will help plan your daughter’s education and marriage, add debt to your portfolio and help you save taxes.
Conclusion
Having clarity on goals and knowing the purpose of the investment makes the investing journey easy and peaceful. Happy investing.
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Important Calculators
