Sukanya Samriddhi Yojana (SSY): Deposit Rs 500 per Month and Build a Fund of Lakhs

Every parent dreams of giving their daughter the best education, a secure future, and financial independence. However, in many households, limited income becomes a barrier to creating a large financial fund. To address this, the Government of India has introduced the Sukanya Samriddhi Yojana (SSY), a savings scheme specially designed for the welfare of girl children.

By depositing as little as ₹500 per month, parents can accumulate a substantial amount over time. The scheme not only ensures guaranteed returns but also provides tax benefits, making it one of the most reliable investment options for the girl child’s education and marriage expenses.

What is Sukanya Samriddhi Yojana (SSY)?

The Sukanya Samriddhi Yojana (SSY) is a part of the Beti Bachao, Beti Padhao campaign launched by the central government. It is a long-term savings scheme with guaranteed returns, designed exclusively for girl children. The account is opened in the name of the daughter, and parents or legal guardians make the deposits.

The scheme aims to support the expenses of higher education and marriage, ensuring that financial constraints do not hinder the future of young girls.

Short Summary of Sukanya Samriddhi Yojana (SSY)

How Much Can You Earn by Depositing ₹500 Per Month?

Even though ₹500 per month seems like a small contribution, when invested consistently, it grows into a significant fund.

• Monthly Contribution: ₹500
• Yearly Contribution: ₹6,000
• Total Investment for 15 Years: ₹90,000
• Maturity Value after 21 Years: Around ₹2.5–3 lakh (including government interest)

This shows the power of disciplined long-term savings, where even small deposits can lead to large financial support in the future.

Key Features of SSY

1. Guaranteed Returns: Unlike market-linked schemes, SSY offers government-backed interest, ensuring safety and stability.
2. Flexible Deposits: Minimum deposit starts at ₹250 per month, making it suitable for families with modest income.
3. Long-Term Tenure: The scheme runs for 21 years, though contributions are required for only 15 years.
4. Tax Benefits: Contributions are eligible for deduction under Section 80C of the Income Tax Act, up to ₹1.5 lakh annually.
5. Partial Withdrawal Facility: Parents can withdraw up to 50% of the account balance when the girl turns 18 for higher education.
6. Account Ownership: The account is opened in the name of the girl child, giving her financial security in adulthood.

Example: Growth of SSY Investment

The actual maturity amount depends on the prevailing interest rates declared by the government, but the scheme ensures guaranteed growth.

Eligibility Criteria

• The girl child must be below 10 years of age at the time of opening the account.
• Only one account per girl child is allowed.
• A family can open a maximum of two accounts (for two daughters).
• Parents or legal guardians are responsible for deposits.

Partial Withdrawal and Maturity

• Partial Withdrawal: Allowed when the girl turns 18, up to 50% of the balance, for higher education expenses.
• Maturity: The scheme matures after 21 years, and the full amount with interest is transferred to the account holder (the girl).
• Premature Closure: Allowed only under exceptional cases such as the death of the account holder or extreme financial hardship.

Why Should Parents Invest in SSY?

1. Secures the Daughter’s Future: Ensures financial availability for education and marriage.
2. Low Risk, High Safety: Being a government-backed scheme, it carries no market risks.
3. Affordable for All Families: Starting from as little as ₹250 per month.
4. Attractive Interest Rate: Higher than many fixed deposits or savings accounts.
5. Tax Savings: Triple benefit – investment, interest earned, and maturity amount are all tax-free under current rules (EEE status).

Steps to Open an SSY Account

1. Visit the nearest bank or post office.
2. Fill out the SSY account opening form.
3. Submit the birth certificate of the girl child along with ID and address proof of the parents/guardians.
4. Deposit the initial amount (minimum ₹250).
5. The account will be opened in the name of the girl child, and a passbook will be issued.

Frequently Asked Questions (FAQs)

Q1. What is the minimum deposit required in SSY?

The minimum deposit is ₹250 per year.

Q2. What is the maximum amount I can deposit?

You can deposit up to ₹1.5 lakh annually.

Q3. Can I withdraw money before maturity?

Yes, partial withdrawal is allowed when the girl turns 18 for educational expenses.

Q4. Is the maturity amount taxable?

No, the maturity amount is tax-free under Section 80C.

Q5. Where can I open the account?

The account can be opened in any post office or authorized banks.

Conclusion

The Sukanya Samriddhi Yojana (SSY) is one of the most beneficial government savings schemes for girl children. By depositing as little as ₹500 per month, parents can create a corpus of lakhs of rupees by the time their daughter turns 21. With guaranteed returns, tax benefits, and government backing, SSY is a safe and reliable choice for securing your daughter’s future.

Parents looking for long-term financial security for their daughters should consider starting this scheme at the earliest to maximize benefits.

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