The financial security of daughters especially for their education and marriage this is a deep concern for every parent. With rising costs of higher education and wedding expenses, building a sufficient fund often seems challenging, particularly for middle-class families. To address this concern, the Government of India introduced the Sukanya Samriddhi Yojana (SSY), a long-term savings scheme that helps parents accumulate a large corpus with small, disciplined savings.
What is Sukanya Samriddhi Yojana (SSY)?
Sukanya Samriddhi Yojana is a government-backed small savings scheme designed exclusively for girl children. Parents or legal guardians can open an account in the name of their daughter before she turns 10.
This account can be opened in post offices and authorized banks across India. Being a central government scheme, it offers:
- Guaranteed returns (unlike mutual funds or stock market-linked investments).
- Tax benefits under Section 80C of the Income Tax Act.
- Attractive interest rates, higher than many traditional fixed deposits.
Quick Summary of Sukanya Samriddhi Yojana
Feature |
Details |
|---|---|
Scheme Name |
Sukanya Samriddhi Yojana (SSY) |
Launched By |
Government of India |
Minimum Deposit |
₹250 per year |
Maximum Deposit |
₹1.5 lakh per year |
Account Opening |
In the name of girl child below 10 years |
Tenure |
21 years from account opening |
Interest Rate (2025) |
8.2% (compounded annually) |
Partial Withdrawal |
Allowed after the girl turns 18 for higher education |
Official Website |
How to Start with SSY?
The scheme is designed to be accessible to families of all income levels.
- Minimum deposit: ₹250 annually.
- Maximum deposit: ₹1.5 lakh annually.
- Deposits can be made monthly, quarterly, or yearly.
For example:
- If parents deposit just ₹500 per month (₹6,000 annually), the investment looks small.
- Over 15 years, this becomes ₹90,000 total contribution.
- But with compound interest, the maturity value can reach ₹2.5–3 lakh.
This demonstrates the scheme’s ability to convert small savings into a big fund.
Key Features of SSY
1. Long Tenure for Wealth Creation
- The scheme matures after 21 years from the date of opening.
- Parents must deposit for 15 years, after which the money continues to earn interest until maturity.
2. Partial Withdrawal for Education
- After the girl turns 18 years, up to 50% of the balance can be withdrawn for higher education expenses such as college fees, books, or hostel charges.
3. Full Withdrawal for Marriage or Maturity
- The account can be closed after 21 years.
- Full maturity value is payable for daughter’s marriage or other needs after she turns 18 (with valid documents).
4. Tax Benefits
- Deposits up to ₹1.5 lakh per year qualify for tax deduction under Section 80C.
- The interest earned and maturity amount are completely tax-free.
Example: How Small Savings Create a Big Corpus
Let’s assume parents deposit ₹1,000 per month (₹12,000 annually) for 15 years:
- Total investment = ₹1,80,000
- Estimated maturity value = ₹5–6 lakh (depending on interest rate)
This amount can be a significant financial aid during higher education or wedding expenses.
Eligibility and Account Opening
- Eligibility: Girl child below 10 years.
- Number of Accounts: Maximum 2 girl children per family (exceptions for twins/triplets).
- Where to Open: Post office or any authorized bank branch.
Documents Required:
- Birth certificate of the girl child.
- Identity and address proof of parent/guardian.
- Passport-size photographs.
Why Parents Should Consider SSY
- Government-backed safety: No risk of losing money.
- Higher returns: Interest rate (currently 8.2%) is better than most fixed deposits.
- Dual purpose: Supports both education and marriage.
- Easy access: Can be opened in post offices and banks across India.
- Affordable: Start with just ₹250, making it suitable for even low-income families.
Step-by-Step Process to Open an SSY Account
- Visit the nearest post office or authorized bank.
- Collect the SSY account opening form.
- Submit the required documents along with the first deposit.
- Collect the passbook, which records all deposits, withdrawals, and interest earned.
FAQs on Sukanya Samriddhi Yojana
Q1. Can both parents deposit separately for one child?
No, only one account can be opened per child, operated by either parent/guardian.
Q2. What happens if no deposit is made in a year?
Ans. A penalty of ₹50 will be charged, and the account can be reactivated by paying the pending amount.
Q3. Is there any loan facility against SSY?
Ans. No, loans cannot be availed against this scheme.
Q4. Can NRIs open an SSY account for their daughters?
Ans. No, only resident Indians are eligible.
Q5. Can the account be transferred if the family moves?
Ans. Yes, the account can be transferred to another city or state at no extra charge.
Conclusion
The Sukanya Samriddhi Yojana is not just a savings scheme but a future security plan for daughters. With disciplined contributions as low as ₹500 per month, parents can create a substantial fund for higher education and marriage expenses. Its tax benefits, guaranteed returns, and government backing make it one of the most reliable financial planning tools for families.
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