The Sukanya Samriddhi Yojana (SSY) was launched in January 2015 under the Beti Bachao Beti Padhao campaign. It is a small savings scheme for the girl child, backed by the Government of India. A Sukanya Samriddhi account offers one of the highest interest rates among small savings schemes along with full tax benefits.
Who can open an account
A parent or legal guardian can open the account in the name of a girl child below 10 years of age. Only one account is allowed per girl, and a family can open accounts for up to two girls. An exception is allowed for twins or triplets, as per the rules.
Where to open
You can open the account at any post office or at authorised banks, including major public sector banks and some private banks. You need the girl’s birth certificate, and KYC documents of the parent, such as Aadhaar and PAN.
Deposit rules
- Minimum deposit: Rs 250 in a financial year.
- Maximum deposit: Rs 1.5 lakh in a financial year.
- Deposits can be made for 15 years from the date of opening.
- If the minimum is not deposited in a year, the account becomes defaulted and can be revived with a penalty of Rs 50 per year plus the minimum amount.
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Interest rate
The interest rate is set by the government every quarter. It has been among the highest of all small savings schemes in recent years. Check the current rate on the National Savings Institute or India Post website, since it can change each quarter. Interest is compounded yearly.
Maturity and withdrawal
The account matures 21 years after the date of opening. Partial withdrawal of up to 50 percent of the balance at the end of the previous financial year is allowed after the girl turns 18 or passes Class 10, for higher education or marriage. The account can be closed early for the girl’s marriage after she turns 18, under the rules.
Premature closure is also allowed in some cases, such as the death of the account holder or on compassionate grounds like a serious illness.
Tax benefits
SSY has EEE status, meaning:
- Deposits qualify for deduction under Section 80C up to Rs 1.5 lakh a year under the old tax regime.
- Interest earned is tax free.
- The maturity amount is tax free.
Under the new tax regime, the 80C deduction is not available, but interest and maturity remain tax free.
Who should consider it
Parents looking for a safe, long term savings option for a daughter’s education or marriage can consider SSY. Since money is locked in for long, plan your deposits carefully.
Bottom line
The Sukanya Samriddhi account is safe, tax free and offers good returns. Open it early, as the girl must be under 10, and deposit regularly to make the most of compounding.
Source / स्रोत: National Savings Institute, Ministry of Finance, India Post: Savings schemes, Department of Economic Affairs
