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Investing in Your Daughter’s Future: Sukanya Samriddhi Account for Higher Education


Last Updated on October 11, 2023 by Sumitha

Secure Your Daughter’s Higher Education with the SSY Scheme

On International Girl Child Day 2023, what better gift can you give your daughter than the promise of a bright future? This special day serves as a reminder of the significance of girls’ education, their rights, and the pursuit of gender equality. In this context, one of the most impactful ways to secure your daughter’s educational aspirations is through the Sukanya Samriddhi Yojana (SSY) account. This financial instrument is a government-backed, tax-free savings scheme designed explicitly for Indian female children. It enables parents to financially support their daughters’ higher education dreams, making it an ideal investment option for the future.

Understanding Sukanya Samriddhi Yojana (SSY)

The Sukanya Samriddhi account is a popular choice for parents in India who are looking to secure their daughter’s financial future. This scheme offers guaranteed, tax-free returns, making it a favoured choice among parents. Here’s a closer look at how this scheme works:

1. Flexible Deposits: Parents can contribute to the SSY account either on a monthly or yearly basis, making it adaptable to various financial situations.

2. Competitive Interest Rate: Currently, the SSY offers an impressive interest rate of 8 percent, although it’s worth noting that this rate is subject to quarterly adjustments.

Funding Higher Studies Through SSY

The SSY account can be a powerful tool to fund your daughter’s higher education. Parents should start investing as soon as their girl child is born to make the most of it. You have a 15-year window to contribute, with deposits allowed until the child reaches 14 years of age. This long-term approach aligns perfectly with the goal of financing your child’s education.

Once your daughter turns 18, the SSY account allows partial withdrawals for either marriage or higher education. However, withdrawals are limited to 50 percent of the account balance at the end of the preceding financial year. This feature makes it an excellent choice for parents who intend to support their daughter’s educational journey.

Personal finance experts often recommend the SSY for parents aiming to save for their daughters’ education. The investment horizon of the scheme is well-suited for funding a child’s graduation and higher studies. It provides a disciplined and structured way to ensure your child’s educational dreams are realized.

However, it’s important to start early. If you begin when your daughter is over 4-5 years old, you might find it challenging to accumulate sufficient funds for higher studies by the time she reaches the age of 18.

The Power of Compound Interest

To illustrate the potential of the SSY, consider this scenario: if you invest ₹1.5 lakhs annually or ₹12,500 per month for fifteen years with an 8 percent interest rate, the maturity amount at your daughter’s 21st birthday would be approximate ₹63,79,634, according to Groww’s Sukanya Samriddhi Yojana calculator. This impressive sum can go a long way in covering higher education expenses.

Tax Benefits

Apart from the substantial returns, the SSY also offers tax benefits. Deposits in this account qualify for an income tax deduction of up to ₹1.5 lakh under Section 80C of the Income Tax Act. Furthermore, the interest earned through the account and the maturity amount remain entirely tax-free. This makes the SSY an even more attractive investment option for parents.


In conclusion, the Sukanya Samriddhi Yojana is not just a savings scheme; it’s a financial tool designed to empower parents to invest in their daughter’s future. By starting early and making consistent contributions, you can secure the financial resources needed to fulfil her dreams of higher education. On International Girl Child Day, consider taking this step towards a brighter future for your daughter.


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