The Sukanya Samriddhi Yojana (SSY) is one of India’s most popular savings schemes aimed at securing the financial future of the girl child. Launched on 22 January 2015 under the Beti Bachao, Beti Padhao campaign by the Government of India, SSY is a small deposit scheme for the girl child to encourage parents or guardians to save for her education and marriage expenses.
1. Objective of the Scheme
The main goals of Sukanya Samriddhi Yojana are:
- To promote the welfare and empowerment of the girl child.
- To provide financial security for her future educational and matrimonial needs.
- To encourage parents to build a long-term corpus for their daughter’s future.
2. Key Features of Sukanya Samriddhi Yojana
a) High Interest Rate
- The scheme offers one of the highest interest rates among government-backed savings schemes.
- As of April to June 2025, the interest rate is 8.2% per annum, compounded annually. This rate is revised quarterly by the Ministry of Finance.
b) Tax Benefits
- SSY offers Triple Tax Exemption (EEE status):
- Exempt at the time of deposit.
- Exempt on the interest earned.
- Exempt on maturity proceeds.
- Contributions are eligible for tax deduction under Section 80C of the Income Tax Act, 1961, up to a limit of ₹1.5 lakh per annum.
c) Minimum and Maximum Deposit
- Minimum deposit: ₹250 per financial year.
- Maximum deposit: ₹1.5 lakh per financial year.
- Deposits can be made monthly or in lump sum.
d) Tenure of the Account
- The account matures after 21 years from the date of opening.
- Contributions are required for the first 15 years only.
- The amount continues to earn interest even after 15 years until maturity.
e) Partial Withdrawal
- Up to 50% of the balance can be withdrawn for higher education after the girl child turns 18 years old or has completed 10th standard, whichever is earlier.
3. Eligibility Criteria
To open an SSY account:
- The account must be opened in the name of a girl child.
- The girl child must be below 10 years of age at the time of account opening.
- Only one account per girl child is allowed.
- A maximum of two accounts per family can be opened for two girl children. A third account is allowed only in case of twin or triplet girls.
4. Where to Open the Account
The SSY account can be opened at:
- Authorized post offices
- Nationalized banks and some private banks like ICICI, HDFC, Axis Bank, etc.
You can also manage the account through online banking, including depositing funds, checking balance, and downloading account statements (if supported by the bank/post office).
5. How to Open the Sukanya Samriddhi Account
Required Documents:
- Birth certificate of the girl child.
- Identity proof of the parent/guardian (Aadhaar, PAN, Passport).
- Address proof of the parent/guardian (Utility bill, Aadhaar, Passport).
- Passport-size photographs of the guardian and child.
Steps:
- Visit the nearest authorized bank/post office.
- Fill the Sukanya Samriddhi Account opening form.
- Submit the required documents.
- Make the initial deposit (minimum ₹250).
- The passbook will be issued after account creation.
6. Benefits of Sukanya Samriddhi Yojana
a) Financial Security
The scheme helps build a strong financial corpus for the girl’s higher education and marriage without worrying about inflation, as the interest rate is higher than many traditional schemes.
b) Tax Saving
It allows tax deductions up to ₹1.5 lakh under 80C and tax-free returns at maturity.
c) Government-Backed Safety
Being a central government-backed scheme, SSY is low-risk and completely safe.
d) Encourages Discipline
Since the deposit is required every year, it instills financial discipline in the guardian or parent.
e) Girl Child Empowerment
The scheme is part of a broader initiative to reduce gender disparity and promote girl child education.
7. Interest Rate Trend
Here is a table of interest rates over the years:
| Financial Year | Interest Rate (%) |
|---|---|
| 2015-16 | 9.2% |
| 2016-17 | 8.6% |
| 2017-18 | 8.3% |
| 2018-19 | 8.5% |
| 2019-20 | 8.4% |
| 2020-21 | 7.6% |
| 2021-22 | 7.6% |
| 2022-23 | 7.6% |
| 2023-24 | 8.0% |
| 2024-25 | 8.2% (as of Q1) |
8. Calculation Example
Suppose you invest ₹1.5 lakh every year for 15 years.
- Total Contribution = ₹22,50,000
- Assuming an average interest rate of 8%
- Maturity Amount after 21 years = ₹65–75 lakh (approx)
This amount is completely tax-free and can be used for the child’s higher education or marriage.
9. Premature Closure of Account
Premature closure is allowed in the following situations:
- Death of the account holder (the girl child).
- Medical emergency or life-threatening disease of the girl child.
- Marriage of the girl child after 18 years, with an affidavit submitted one month prior or three months after the wedding.
- In exceptional cases of financial hardship (with government approval).
Penalty: If a minimum deposit is not made in a financial year, the account is considered defaulted, and a penalty of ₹50 is charged along with the minimum deposit to reactivate it.
10. How to Transfer the Account
The SSY account can be transferred from:
- One post office to another
- One bank to another
- Post office to bank or vice versa
You need to:
- Submit a transfer request form.
- Provide the original passbook and KYC documents.
There is no charge for transfer if it is due to a change in residence. Otherwise, a small fee may be applicable.
11. Comparison with Other Schemes
| Scheme | Interest Rate | Lock-in Period | Tax Benefits | Purpose |
|---|---|---|---|---|
| Sukanya Samriddhi | 8.2% | 21 years or until marriage | 80C + tax-free maturity | Girl child |
| PPF | 7.1% | 15 years | 80C + tax-free | General savings |
| FD | ~6-7% | Flexible | Taxable | General savings |
| RD | ~6-7% | 5 years typical | Taxable | Short term |
Clearly, SSY offers better returns and tax benefits than most conventional options for child-specific saving goals.
12. Important Rules to Remember
- Marriage before 18 years disqualifies the girl child from the scheme.
- Keep the passbook safe and updated for all deposits and withdrawals.
- The scheme is strictly for the benefit of the girl child—funds cannot be diverted.
- Deposits can be made online or via standing instructions from a bank account.
13. Criticisms and Suggestions
a) Lack of Flexibility
Unlike mutual funds or SIPs, the amount and tenure are rigid. There’s no liquidity before 18 years.
b) Only for Girls
While the intention is noble, families with only boys have no similar targeted scheme.
c) Online Access
Although some banks offer online management, post office accounts still lack full online features.
14. Conclusion
The Sukanya Samriddhi Yojana is a wise, long-term, and safe investment option for those who want to secure their daughter’s financial future. With high interest, tax benefits, and government backing, it stands out as a leading savings instrument tailored for the girl child’s development and empowerment.
By investing early and consistently, families can build a significant corpus that ensures the girl child has financial support for higher education and marriage without debt or compromise.
