Sukanya Samriddhi Yojana (SSY) is a government-backed small savings scheme introduced by the Government of India as part of its ‘Beti Bachao Beti Padhao’ initiative. It is aimed at encouraging parents to save for the future education and marriage expenses of their girl child. Launched in 2015, the scheme provides attractive returns along with tax benefits, making it one of the most popular saving options for parents.
Key Features of Sukanya Samriddhi Yojana
- Eligibility:
- The account can be opened for a girl child below the age of 10.
- Only one account is allowed per girl child.
- A family can open a maximum of two accounts, one for each girl child.
- Minimum and Maximum Deposit:
- The minimum annual deposit is ₸250.
- The maximum annual deposit is ₸1,50,000.
- Tenure:
- The account matures after 21 years from the date of opening or upon the marriage of the girl child after she turns 18.
- Partial Withdrawal:
- Up to 50% of the balance can be withdrawn after the girl child attains the age of 18 for higher education expenses.
- Interest Rate:
- The scheme offers an attractive interest rate, revised quarterly by the government. For the latest quarter, the interest rate is 8.0% per annum (as of January 2025).
- Tax Benefits:
- Contributions are eligible for tax deduction under Section 80C of the Income Tax Act.
- The interest earned and the maturity amount are entirely tax-free.
Objectives of the Scheme
The Sukanya Samriddhi Yojana was designed with specific objectives to empower the girl child and support families. These include:
- Promoting Financial Inclusion: Ensuring access to a secure savings mechanism for families, particularly in rural and underprivileged areas.
- Reducing Gender Inequality: Encouraging families to invest in their daughters’ future, thereby promoting equality.
- Encouraging Long-Term Savings: Building a culture of disciplined savings among parents.
- Providing Financial Security: Creating a reliable corpus for the education and marriage of the girl child.
How to Open a Sukanya Samriddhi Yojana Account
Opening an SSY account is a simple process that can be completed at your nearest bank or post office. Here’s a step-by-step guide:
- Locate an Authorized Bank or Post Office: Most major banks and all post offices in India are authorized to open SSY accounts.
- Gather the Required Documents:
- Birth certificate of the girl child.
- Identity proof (Aadhar, PAN, Voter ID) of the parent or guardian.
- Address proof (Aadhar, Passport, Utility bills).
- Fill Out the Application Form: Obtain and complete the Sukanya Samriddhi Yojana application form.
- Deposit the Initial Amount: Make a minimum deposit of ₸250 to activate the account.
- Collect the Passbook: The bank or post office will issue a passbook containing account details and transactions.
Benefits of Sukanya Samriddhi Yojana
- Financial Security: Ensures a secure future for the girl child by building a substantial corpus over time.
- High Returns: Offers a higher interest rate compared to other small savings schemes, making it a lucrative investment option.
- Tax Savings: Triple tax benefits—investments, interest earned, and maturity proceeds are all tax-free.
- Flexibility in Deposits: Parents can deposit as low as ₸250 annually, making it accessible across income groups.
- Encourages Education: Funds can be used for higher education, ensuring the child’s academic aspirations are not hindered.
- Government-Backed Security: The scheme is backed by the Government of India, ensuring safety and reliability.
Interest Rate and Calculation
The Sukanya Samriddhi Yojana offers a competitive interest rate, which is compounded annually. The government reviews and adjusts the interest rate quarterly. As of January 2025, the interest rate is 8.0% per annum. Here’s how the interest is calculated:
- Interest is calculated on the lowest balance in the account between the close of the 5th day and the end of the month.
- Deposits made after the 10th of a month will not earn interest for that month.
Illustrative Example: If a parent deposits ₹1,00,000 annually for 15 years, the corpus grows significantly due to compounding. Here’s a breakdown:
| Year | Annual Deposit (₹) | Total Deposit (₹) | Interest Earned (₹) | Total Balance (₹) |
|---|---|---|---|---|
| 1 | 1,00,000 | 1,00,000 | 8,000 | 1,08,000 |
| 5 | 1,00,000 | 5,00,000 | 2,19,815 | 7,19,815 |
| 10 | 1,00,000 | 10,00,000 | 6,33,910 | 16,33,910 |
| 15 | 1,00,000 | 15,00,000 | 13,93,325 | 28,93,325 |
Comparison with Other Savings Schemes
The Sukanya Samriddhi Yojana stands out among other savings schemes due to its high returns and targeted benefits for the girl child. Below is a comparison:
| Feature | Sukanya Samriddhi Yojana | Public Provident Fund (PPF) | Fixed Deposit (FD) |
| Eligibility | Girl child below 10 years | Any individual | Any individual |
| Interest Rate | 8.0% (as of Jan 2025) | 7.1% (as of Jan 2025) | 6-7% |
| Tax Benefits | Section 80C + tax-free returns | Section 80C | Taxable interest |
| Maximum Deposit (Annual) | ₸1,50,000 | ₸1,50,000 | No limit |
| Maturity Period | 21 years or marriage | 15 years | Flexible |
Key Points to Remember
- Penalty for Non-Deposit:
- A penalty of ₸50 is charged if the minimum deposit (₸250) is not made in a financial year.
- Premature Closure:
- Allowed only in cases of the death of the account holder or extreme compassionate grounds like medical emergencies.
- Transferability:
- The account can be transferred from one bank or post office to another anywhere in India.
- Operation After Maturity:
- The account continues to earn interest even after maturity if it is not closed.
Importance of Sukanya Samriddhi Yojana
- Promotes Girl Child Education: By earmarking funds for education, the scheme reduces the financial burden on families.
- Encourages Early Savings: With an entry age limit of 10 years, parents are encouraged to start saving early.
- Reduces Gender Disparity: The scheme is a step towards addressing the financial discrimination faced by girl children in India.
- Boosts National Savings: By encouraging small savings, the scheme contributes to the overall economic development of the country.
Final Thoughts
Sukanya Samriddhi Yojana is more than just a savings scheme; it’s a commitment to the future of the girl child. Its high returns, tax benefits, and government backing make it an ideal investment for parents looking to secure their daughters’ future. Early planning and disciplined savings can ensure that your child’s education and marriage expenses are well taken care of.
Start investing today to take full advantage of this beneficial scheme and contribute to the mission of empowering India’s daughters.
For more updates and detailed guides on government schemes, visit SarkariPMYojana.