Raising funds for a daughter’s education and a grand wedding is a major concern for every parent today. Keeping this crucial financial need in mind, the Government of India launched the revolutionary Sukanya Samriddhi Yojana in 2015 under the Beti Bachao, Beti Padhao campaign.
This scheme currently offers exceptional returns of 8.2%, making it one of the most popular and secure government investment options. Learn about the investment rules, tax benefits, and substantial maturity returns of this beneficial scheme.
A Golden Saving Opportunity for Daughters
Sukanya Samriddhi Yojana is a special savings scheme run by the Government of India. This scheme offers government-guaranteed interest on fixed annual deposits, ensuring the future of daughters is fully secured. Currently, the annual interest rate on this scheme (for the quarter from October to December 2025) is fixed at 8.2%.
Investment Limits and Tenure Rules
A minimum annual deposit of ₹250 is mandatory under this scheme, with a maximum of ₹1.5 lakh. The total tenure of this account is 21 years, but deposits are only required for the first 15 years. After 15 years, the account continues to earn interest for 21 years without any investment. If the daughter marries before the age of 21, the account will be closed. This scheme is completely secure as it is directly administered by the government and offers significant tax exemptions under the old tax regime.
Who can open an account
Specific eligibility criteria and account operation rules have been established to avail the benefits of this scheme. The account can only be opened in the name of a girl child aged 10 years or below. A maximum of two daughters is allowed to open an account in a family. However, if there are twins or triplets, more accounts are permitted under special rules. Most importantly, only one account can be opened in the name of a girl.
Operation, Default, and Penalties
According to government regulations, the account can only be operated by the parents or legal guardians. Grandparents cannot operate the account unless they are the legal guardians. A minimum deposit of ₹250 per year is mandatory to keep the account active. If this amount is not deposited, the account will be considered in default. To reactivate such an account, a penalty of ₹50 per year must be paid along with the outstanding balance. This process must be completed within 15 years of the date of account opening.
Large Maturity Amount
The biggest attraction of the Sukanya Samriddhi Yojana is its large maturity amount, which increases manifold due to compounding interest. If parents open an account in the name of their 5-year-old daughter and invest a maximum of ₹1.5 lakh per year, their total deposit will be ₹22.5 lakh in 15 years. After 21 years (i.e., in 2046), assuming an average interest rate of 8.2%, this amount could grow to approximately ₹70 lakh.
This exceptional return provides sufficient financial support for the daughter’s higher education or marriage. However, it is crucial to understand that inflation reduces the real value of this amount over the long term. If inflation is assumed to average 6% annually, the real value of ₹70 lakh in 2046 would be equivalent to approximately ₹20-22 lakh today. Nevertheless, this scheme is the best and safest savings option for the long term.