Today, the Sukanya Samriddhi Yojana (SSY) is considered the most reliable government scheme for the financial security of daughters in India. This scheme has received unprecedented support from families across the country. A concrete proof of this is that more than 40 million accounts have been opened under the scheme so far, and the total amount deposited in these accounts has surpassed the colossal figure of ₹3.25 lakh crore.
This clearly demonstrates that people consider SSY to be the safest and most powerful means to secure their daughters’ future. This scheme is not only an investment but also a government-guaranteed security shield for your daughter, unaffected by market fluctuations.
How can you become ₹72 lakh
The most unique feature of this scheme is its compound interest, which multiplies your investment over time. Currently, the scheme offers an attractive interest rate of 8.2% (determined quarterly). If a parent deposits a maximum of ₹1.5 lakh every year for 15 years in their daughter’s account, they receive a substantial sum of approximately ₹72 lakh at maturity in 21 years.
The key point to understand here is that the total deposit amount during this period is approximately ₹22.5 lakh, while over ₹49 lakh is earned as interest. Interest is calculated on the monthly minimum balance and credited to the account at the end of the year. The total tenure of this account is 21 years, but investments are required for only 15 years. For the remaining six years, your deposit continues to grow due to compound interest, without any new deposits, making SSY exceptionally attractive.
Account Opening Rules
Opening a Sukanya Samriddhi Account is very simple, but there are certain rules. Parents can open this account from the birth of their daughter until she turns 10. Accounts can be opened for two daughters in a family. However, if twins or triplets are born, three accounts are also allowed. The minimum investment in this scheme is only ₹250 per year, making it accessible to both the poor and the middle class. The maximum limit is set at ₹1.5 lakh per year.
Tax Benefits and Government Guarantee
Sukanya Samriddhi Yojana is considered the safest investment scheme in the country because it is 100% government guaranteed, making it completely free from market risks. This scheme primarily helps build a long-term fund for major expenses like a daughter’s higher education and marriage. Its biggest attraction is its incredible tax benefits.
It is one of the rare schemes in India that falls under the EEE (Exempt-Exempt-Exempt) category. Deposits are eligible for income tax exemption under Section 80C, the interest earned is completely tax-free, and the entire maturity amount is also tax-free.
When can funds be withdrawn
Although the SSY account has a 21-year term, the account can be closed after five years under certain critical circumstances. For example, if the account holder or guardian suffers a serious or life-threatening illness that makes it impossible to continue the account, it is permitted to close. However, in such cases, the interest rate is paid at the savings account rate until the date of closure. Furthermore, after the daughter turns 18, there is the unique option of withdrawing 50% of the amount for higher education.