Sukanya Samriddhi Yojana offers an interest rate of 8.2% per annum on SSY accounts for the current quarter (1 July to 30 September 2024), which is compounded annually. This interest rate is reviewed every quarter and is one of the highest among small savings schemes in the country.
Sukanya Samriddhi Yojana (SSY), launched by the Government of India in 2015, is a small savings scheme designed to provide attractive returns for the future of girls. Under the Beti Bachao Beti Padhao campaign, the scheme aims to support the education and financial needs of girls across the country.
The maturity period of this scheme is 21 years or until the girl gets married at the age of 18. Contributions can be made only for the first 15 years. After this, the SSY account will continue to earn interest until maturity.
For example, if the parents of a 5-year-old girl invest ₹10,000 every month, after investing at this rate for 15 years, they can accumulate around ₹46.35 lakh after 21 years. This includes their total investment of ₹18 lakh and an estimated ₹28.35 lakh in interest.
Tax Benefits of Sukanya Samriddhi Yojana
The SSY scheme also offers significant tax benefits. According to an official statement from the Ministry of Finance, “Sukanya Samriddhi Yojana gets ‘Triple E’ (Exempt-Exempt-Exempt) tax benefits. Investments made in it are eligible for a tax deduction up to a maximum limit of ₹1.5 lakh under Section 80C. The interest earned on this account is also tax-free under Section 10, and the amount received on maturity or withdrawal is exempt from income tax.”
Long-Term Investment with Safety
An important feature of SSY is its long-term nature. The accounts mature in 21 years or end after the girl turns 18 and gets married, thus providing a significant amount for your daughter’s future needs.
Advantages and Restrictions
The scheme offers the advantage of safety and high returns, but there are some restrictions. Partial withdrawals can be made under certain circumstances, but loans cannot be taken against SSY deposits. However, the government guarantee ensures the safety of the invested funds.