Sukanya Samriddhi Yojana: If you are planning to invest for your daughter’s education and future, the SSY scheme stands out as one of the most popular government savings schemes. Launched by the Central Government under the ‘Beti Bachao, Beti Padhao’ campaign, this scheme aims to provide parents and guardians with a secure, long-term investment option to cover major expenses such as a daughter’s higher education and marriage.
The government offers attractive interest rates on investments in this scheme, along with tax benefits. If parents invest the maximum limit of ₹1.5 lakh annually for 15 years—as per the scheme’s rules—they can receive a return of approximately ₹69.22 lakh upon maturity. The return on maturity is based on an interest rate of 8.2 per cent; the government periodically revises this rate.
What is the SSY Scheme?
The SSY scheme is a government small savings scheme where an account is opened in the name of a daughter who is under 10 years of age. The government pays interest on the deposited amount quarterly. Interest is calculated annually and credited to the account, thereby offering the benefit of compounding. This scheme is highly beneficial for those who wish to accumulate a substantial corpus through small, regular savings.
Who can open an SSY account?
To open an SSY account, the daughter must be under 10 years of age. The account is opened by parents or legal guardians. Only one SSY account can be opened per daughter. Under normal circumstances, a maximum of two SSY accounts can be opened per family (one for each of two daughters).
How much can be invested?
The investment limits for the SSY scheme are quite straightforward. Under this scheme, you can invest a minimum of ₹250 and a maximum of ₹1.5 lakh annually. You can deposit this amount either in a lump sum or in multiple instalments throughout the year. Please note that the investment limit is ₹1.5 lakh per financial year. Currently, the SSY scheme offers an annual interest rate of 8.2%.
What returns can you expect on an investment of ₹1.5 lakh?
If an investor invests ₹1.5 lakh annually for 15 consecutive years, they earn an annual return of 8.2%. Upon maturity after 21 years, the total maturity amount reaches approximately ₹69.22 lakh. This figure includes both your total investment and the accrued interest.
Start investing with just ₹250
If your financial situation does not allow for a large investment, there is no need to worry. You can keep the SSY account active by depositing as little as ₹250 per year. You can subsequently increase the investment amount according to your financial capacity.
How to calculate the amount using the SSY calculator?
If you wish to know the future value of your investment, you can use an online SSY calculator. You simply need to enter details such as your daughter’s age, the annual investment amount, and the investment tenure to view the maturity amount. Please note that the payout is based on the applicable interest rate.
How to open an SSY account?
Many banks and the Department of Posts currently offer online facilities for this purpose.
Log in to your net banking or mobile banking account.
Navigate to the ‘Services’, ‘Government Schemes’, or ‘Deposits’ section.
Select the option to open an SSY account.
Enter the daughter’s name, date of birth, and other required details.
Submit your application.
Finally, submit the necessary documents at the bank branch if requested.
Banks where you can open an SSY account
Several public and private sector banks offer the facility to open an SSY account. These include the State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda, Canara Bank, Union Bank of India, Bank of India, Indian Bank, HDFC Bank, ICICI Bank, Axis Bank, and India Post (Post Office).
Documents required to open an SSY account
To open an SSY account, specific documents are required, such as the daughter’s birth certificate, the parents’ Aadhaar cards and PAN cards, passport-sized photographs, and KYC documents.
Benefits and features
The SSY scheme allows for partial withdrawals under certain circumstances—for instance, funds can be withdrawn for the daughter’s higher education, subject to specific rules. Generally, a portion of the account balance can be withdrawn once eligibility criteria are met. Additionally, the scheme offers tax benefits under Section 80C of the Income Tax Act.
Points to keep in mind
It is important to consider a few key points before investing. Ensure that deposits are made on time each year and that the investment does not exceed the ₹1.5 lakh limit. Also, note that interest rates are subject to periodic revision, and the final maturity amount depends on the applicable interest rate.
Conclusion
The SSY scheme is one of the Government of India’s most significant savings schemes, designed to secure the financial future of daughters. Investing up to ₹1.5 lakh annually for 15 years currently yields an interest rate of 8.2%. With a maturity period of 21 years, one can receive up to ₹69.22 lakh. However, interest rates are subject to periodic revision.