Current Interest Rate on SSY
The government has retained the 8.2 per cent annual interest rate in the current quarter (July-September 2026) for SSY. The central government decides on the interest rate of this scheme every quarter, and the rate of 8.2% makes SSY one of the highest-interest-bearing government savings schemes.
This interest rate is calculated on the basis of compound interest, which increases the investment manifold over time. This is why SSY helps in creating a large corpus even on a small investment
How much to invest for a Rs 50 lakh fund?
If you invest ₹1.05 lakh every year for 15 years, you can raise a fund of ₹50 lakh at an interest rate of 8.2%. That is, you will have to invest ₹8,750 every month.
Your total investment in 15 years will be ₹15.75 lakh. The 8.2 per cent compounded annual interest will fetch a total interest of Rs 34.25 lakh, taking the total amount to Rs50 lakh on a maturity of 21 years. That is, your investment increases by more than 3 times.
However, the investment has to be made only for 15 years, but the account matures at 21 years (even at 18 years with certain conditions). In the remaining period (15 to 21 years), your money continues to earn interest, which increases the corpus.
The minimum and maximum investment
A minimum of ₹250 and a maximum of ₹1.5 lakh can be deposited in SSY per financial year. You can also invest in multiple installments in a financial year, but the total deposit should not be more than ₹1.5 lakh.
The account may become inactive if the minimum condition of ₹250 is not met.
There is no interest or tax deduction on the additional amount if the maximum deposit is more than ₹1.5 lakh
Tax benefits (exemptions)
SSY falls under the EEE (Exempt-Exempt-Exempt) category, which provides tax exemption at all three levels of investment, interest and maturity:
Discount on investment: The amount deposited in your SSY is eligible for tax deduction up to ₹1.5 lakh under Section 80C.
Discount on interest: The interest earned on SSY is completely tax-free.
Discount on Maturity: The entire amount received when the account matures is also tax-free.
This is the reason why SSY is better in terms of tax-free returns even compared to schemes like PPF and NPS, as the interest on PPF and EPF is tax-free but there is complete exemption on investment or maturity, while SSY offers discounts at all three levels.
Conditions for opening an account
An SSY account can be opened in the name of only one daughter (maximum 2 daughters).
The age of the girl should be less than 10 years.
The account is opened in a post office or bank with identity proof and birth certificate.
The account remains active until the age of 18 is married or the account matures.
Is it possible to withdraw money before the completion of 21 years?
Partial withdrawal (up to 50%) is allowed before the account matures under certain circumstances, such as for a daughter's education or marriage. This is possible only if the daughter is above 18 years of age and has passed the 10th or 12th examination.
However, the account is fully matured only at the age of 21, provided the daughter is not married at the age of 18.
Conclusion
Sukanya Samriddhi Yojana is one of the best and safe schemes for the future of the daughter. With 8.2 per cent interest, tax exemption up to Rs 1.5 lakh, and completely tax-free returns, this scheme is a disciplined investment opportunity for every parent.
If you want to create a fund of Rs 50 lakh, an annual investment of Rs 1.05 lakh (Rs 8,750 per month) can provide your daughter with a strong financial security at the age of 21.
If you have not yet been able to take advantage of this scheme, open an SSY account in your daughter's name as soon as possible and contribute to fulfilling her dreams. Stay tuned to timesbull.com for more such financial information, investment plans and government schemes.