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Sukanya Samriddhi Yojana: A Financial Boon for Girl Child

Writer's picture: Financial VinesFinancial Vines

The Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme specifically designed to promote the financial well-being of girl children in India. Launched in 2015 under the Beti Bachao, Beti Padhao initiative, the SSY aims to encourage parents to invest in their daughters' future by providing attractive interest rates and tax benefits.


Eligibility

To open an SSY account, a parent or legal guardian can do so for a girl child who is below 10 years old. Only one account can be opened for a girl child.


Account Opening

SSY accounts can be opened at designated post offices or authorized commercial banks. The initial deposit requirement is just ₹250, and subsequent deposits can be made in multiples of ₹50. The maximum annual deposit limit is ₹1.5 lakh per girl child.


Interest Rate

The current interest rate for SSY accounts is 7.6% per annum, which is compounded annually. This rate is higher than most other savings schemes, making it an attractive option for long-term investments.


Tax Benefits

SSY contributions qualify for tax deduction under Section 80C of the Income Tax Act. This means that parents can reduce their taxable income by the amount they invest in their daughter's SSY account.


Maturity

SSY accounts mature after 21 years from the date of account opening. At maturity, the account holder receives the entire accumulated amount, including the principal and interest.


Partial Withdrawals

Partial withdrawals from SSY accounts are allowed after the girl child attains the age of 18 years. These withdrawals can be used for specific purposes such as higher education and marriage expenses.


How to Apply

To apply for an SSY account, you will need to visit a designated post office or authorized commercial bank and fill out the application form. You will need to provide the following documents:


Proof of identity of the parent or guardian

Proof of address of the parent or guardian

Birth certificate of the girl child

Two passport-sized photographs of the girl child


Calculating Maturity Amount

If a person starts investing in an SSY account from the birth of their girl child, they can expect to accumulate a significant amount by the time the girl reaches maturity.


Using the current interest rate of 7.6%, a monthly deposit of ₹1,500 (₹18,000 per year) will result in a maturity amount of approximately ₹7.5 lakhs after 21 years. This amount can be a valuable contribution to the girl child's higher education, marriage, or other future expenses.


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9 Comments


Financial Vines
Financial Vines
Dec 06, 2023

The maturity amount of the Sukanya Samriddhi Yojana (SSY) is 100% tax-free. This means that you will not have to pay any income tax on the amount you receive when the account matures. This is a significant benefit, as it can make the SSY a very attractive investment option for parents of girl children.


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BabuRao
Dec 06, 2023

What if girl child goes to jail ? 🤣

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Financial Vines
Financial Vines
Dec 06, 2023
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If the girl child goes to jail, the SSY account will continue to accrue interest, and the funds will be available to her upon her release.

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Stockerage
Stockerage
Dec 06, 2023

My daughter is 11 years old. Can i apply ?

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Financial Vines
Financial Vines
Dec 06, 2023
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No, you cannot invest in the Sukanya Samriddhi Yojana (SSY) if the girl child is over 10 years old. The scheme is only open to girl children who are less than 10 years old at the time of opening the account.

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Parth Singal
Dec 06, 2023

What if girl child dies before Maturity?

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Financial Vines
Financial Vines
Dec 06, 2023
Replying to

If the girl child dies before the maturity date the Sukanya Samriddhi Yojana account will be prematurely closed and the accumulated balance, including accrued interest, will be paid to the account holder's legal guardian or nominee.

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BabuRao
Dec 06, 2023

For NRI ?

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Financial Vines
Financial Vines
Dec 06, 2023
Replying to

No, NRIs are not eligible to apply for Sukanya Samriddhi Yojana (SSY). The scheme is open only to Indian citizens who are residents of India.

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