Sukanya Samriddhi Yojana (SSY): Every parent worries about their daughter’s education, higher studies, and marriage. If you wish to build a substantial corpus for your daughter through small, regular savings, the Sukanya Samriddhi Yojana (SSY) could be the best option. Launched under the ‘Beti Bachao, Beti Padhao’ (Save the Daughter, Educate the Daughter) campaign, this small savings scheme aims to help parents secure their daughters’ futures.
Savings under this scheme can start with as little as ₹250 annually, with a maximum investment limit of ₹1.5 lakh per year (or ₹12,500 per month). A key feature of this scheme is its long-term nature; it offers the benefit of accumulated interest upon maturity. Let us explore the details: who can open an account, how much you need to invest, and what amount you will receive at maturity.
What is the interest rate offered by SSY?
According to media reports, the scheme currently offers an interest rate of 8.2%. It is worth noting that the government periodically reviews interest rates for small savings schemes. While there were expectations that the government might revise the rates for the October–December 2026 quarter, investors will continue to earn interest at the rate of 8.2% for this period as well; the Ministry of Finance has kept the rates unchanged.
It is also important to note that this scheme offers the benefit of compound interest. This benefit simply means that interest is earned on the interest accrued on the deposited amount, resulting in a substantial corpus by the time of maturity.
Read More:- Gold Price Hike Today – See Here 24K, 22K & 18K Gold Updated Rates City – Wise
Read More:- Aadhaar Update: Father’s and Husband’s Names May Be Removed? Know UIDAI’s HoF Rule
Read More: GST 2.0 – Traders Get Major Relief Under New GST Rules, Check Details
Who can open an SSY account?
Specific conditions have been laid down for opening a daughter’s account under the SSY scheme. To open an account under this scheme, the daughter must be under 10 years of age. If the daughter is a minor, the account is opened by the parents, and it is operated by the guardians. According to the rules, only one account can be opened per daughter; however, if a family has two daughters, separate accounts can be opened for both. Exceptions may be granted in cases of twins or triplets. Before opening an account for your daughter, it is essential to verify her eligibility.
For how long must one invest?
The tenure for depositing money and the tenure for the scheme itself differ. Investments must be made for 15 years from the date the account is opened. The account matures 21 years after the opening date. Even after the deposit period ends, the account continues to earn interest until maturity.
When can money be withdrawn for the daughter’s education?
It is important to note that the entire accumulated amount in the Sukanya Samriddhi Scheme cannot be withdrawn at any time. However, partial withdrawal is permitted for the daughter’s higher education. If the daughter has attained the age of 18 and wishes to withdraw funds for higher education after passing the 10th standard, she is eligible to do so. Under the withdrawal rules, a maximum of 50% of the accumulated amount can be withdrawn.
Additionally, the account can be closed prematurely upon the daughter’s marriage after she turns 18. To do so, documents verifying the marriage date and age must be submitted. A request to close the account can be made anytime from one month prior to the wedding date up to three months after the wedding.
Tax Benefits under SSY
A key feature of this scheme is that investments qualify for tax benefits of up to ₹1.5 lakh under Section 80C of the Income Tax Act. This limit applies in conjunction with other eligible investments. According to the scheme’s rules, the interest earned is tax-free, and the maturity amount is also exempt from tax.
Where to Open the Account
You can open this account in your daughter’s name by visiting a nearby post office or bank branch. Certain documents are required to open the account, including the daughter’s birth certificate, the parents’ identity proofs (such as Aadhaar card, PAN card, voter ID, passport, or ration card), proof of address, and the account opening application form.
What is the Maturity Amount?
Investments in the SSY scheme can start from a minimum of ₹250, with a maximum annual limit of ₹1.5 lakh (or ₹12,500 per month). If you invest ₹12,500 per month in your daughter’s name, the total investment over 15 years would amount to ₹2,250,000. Subsequently, based on an interest rate of 8.2%, the total maturity amount received would be ₹6,927,578. Of this total, ₹4,677,578 would come from interest earnings alone.