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Sukanya Samriddhi Yojana, or SSY, is a benefit plan for girls. It was created as a part of the government’s ‘Beti Bachao, Beti Padhao’ initiative. Investing in this insurance plan helps parents to provide financial stability for a female child aged 10 or less. A girl’s account can be created in any bank for a period of 21 years under this scheme. The investment term under SSY is 21 years, beginning with the account’s commencement. Read on to know more about Sukanya Samriddhi Yojana.

What is Sukanya Samriddhi Yojana?

Sukanya Samriddhi Yojana (SSY) is a government-sponsored modest savings plan for a female child’s financial requirements. It debuted as part of the ‘Beti Bachao, Beti Padhao’ campaign. The program qualifies for an income tax deduction under Section 80C. The refunds are also tax-free. The SSY is valid for 21 years from the date of account establishment or until after reaching the age of 18. It can be created at approved banks or post offices. The initiative helps parents to save up money for their female child’s future education.

When can you open a Sukanya Samriddhi account?

A Sukanya Samriddhi Account can be started at any time following the birth of a female child until she reaches the age of ten. In later years, a minimum deposit of Rs 250 and a maximum deposit of Rs 1.5 lakh can be made within the current fiscal year. 

The account will be active for 21 years from the moment it is opened, or until the girl marries after she reaches the age of 18. A partial withdrawal of 50% of the balance is permitted to cover the child’s further education expenditures after the girl child reaches the age of 18. After the age of 18, a girl child can manage her account. After presenting the relevant documentation to the post office/bank where the account is maintained, she is entitled to operate the SSY once she reaches the age of 18.

Benefits of SSY

• Sukanya Samriddhi Account has a greater interest rate than other Savings Plans that provide financial stability for girls. The government releases the relevant interest rate for each fiscal year, although the interest on your assets is compounded yearly. The assets in your Sukanya Samriddhi Yojana account will have multiplied by the time you reach adulthood.
• If you are the parent or guardian of a girl under the age of ten, you may register an SSY Account for up to two daughters. Now for the big one. After the daughter reaches the age of 18, she can take 50% of the remaining amount to cover school expenditures. Proof of admission is required.
• A minimum deposit of Rs. 250 and a maximum deposit of Rs. 1.5 lakh can be made every year. This guarantees that persons of varying financial means can participate in the program.
• A tax deduction is available for your donations to the Sukanya Samriddhi Yojana for your daughter’s future under Section 80C of the Income Tax Act of 1961. As a result, you may claim tax benefits up to Rs 1.5 lakh invested in the plan. Furthermore, tax breaks are possible on both the investment earnings and the amount received upon maturation or withdrawal.

Sukanya Samriddhi Yojana Interest Rate

SSY falls within the range of small savings and post office plans for which the government sets interest rates on a quarterly basis. Interest rates are declared on a quarterly basis based on returns on government securities. The relevant interest rate is 7.6% from April 1 through June 30, 2022. The interest rate on the plan is established by the Indian government and is adjusted on a monthly basis. Interest is not due once the program’s tenure has expired or if the girl becomes a Non-resident Indian (NRI) or a non-citizen.

Eligibility of Sukanya Samriddhi Yojana

• A female child’s parent or legal guardian can create an SSY account on her behalf.
• The girl child must be under the age of ten at the time the account is opened.
• The child must be a resident of India.
• A household may only have two SSY accounts, one for each girl child.
• A girl child’s name can only be used to create one account.
• The first investment can start at ₹250 and has a yearly ceiling of ₹150,000.
• A third account can be created if a girl child is born before twin or triplet girls, or if triplets are conceived first.

What is the maturity period of SSY?

Sukanya Samriddhi Yojana is valid till the girl child reaches the age of 21 or until she marries after reaching the age of 18. However, investments are only required for 15 years. Even if no deposits are made into the SSY account, it will continue to accrue interest until expiration.