Sukanya Samriddhi Yojana is a government-supported savings plan initiated by the Ministry of Finance in 2015. It enables parents or legal guardians to open a Sukanya Samriddhi Account in the name of the girl child at a post office or an authorised bank.
The scheme would help the child save towards his/her future education and marriage costs, while offering high interest rates and tax-free returns.
Objective of Sukanya Samriddhi Yojana (SSY)
The key points of the Sukanya Samriddhi Yojana are:
- To advance the economic stability of female child education and marriage.
- To help parents save regularly so that they can secure the future of their daughter.
- To offer a safe and long-term investment opportunity with assured returns.
- In order to empower families through the mission of Beti Bachao Beti Padhao.
Eligibility Requirements of Sukanya Samriddhi Yojana
It is worth noting that one should know who is eligible to open a Sukanya Samriddhi Account and under what conditions before one opens an account.
- It is possible to open an account only in the name of a girl child.
- The girl child should be under 10 years of age when opening the account.
- Parents or legal guardians may open the account.
- Each girl child should have only one account.
- A family is allowed to open two accounts for the daughters.
- When the case involves twin or triplet girl children, more than two accounts are allowed with sound evidence.
Where to Open a Sukanya Samriddhi Account?
Sukanya Samriddhi Account may be easily opened at:
- Any Post Office in India
- Public Sector Banks, e.g. SBI, PNB, Bank of Baroda, etc.
- The Government of India approved the Private Banks.
The procedure to open the account is not complicated: the Form SSA-1 must be completed, with documents such as the girl child’s birth certificate and the address proof of her guardian attached, and a deposit must be made.
Minimum and Maximum Classification of Deposits
The minimum deposit required to open an SSY account is Rs. 250, and the maximum deposit made during a financial year is Rs. 1,50,000.
Deposits can be made:
- As a single lump sum or in several instalments during the year.
- Cash, cheque, or online transfer, as available at the bank or post office.
If the minimum is not deposited within one year, a penalty of Rs. 50 is payable, and an account can be reinstated on payment.
The Interest Rate under the Sukanya Samriddhi Yojana
The interest rate of the Sukanya Samriddhi Yojana is not fixed; the government adjusts it every quarter based on market conditions.
The current financial-year interest rate for the SSY is 8.2% per annum (as of 2025), among the highest charged on the small savings scheme. Interest is multiplied at the end of each financial year and accrued to the account.
This is a high-interest rate coupled with tax-free maturity, making the SSY scheme an optimal long-term investment for securing your daughter’s future.
Maturity and Withdrawal Rules of SSY
The Sukanya Samriddhi Account matures after 21 years from the date of opening. The depositor, however, is free to cease making contributions after 15 years, and the account will continue to earn interest until maturity.
The withdrawals, in part, can be made after the girl reaches the age of 18 years, as long as the money is used in:
- Increase in higher education costs, or
- Marriage purposes
These purposes allow the withdrawal of up to 50 percent of the account balance of the preceding financial year.
Eventually, in the event of the unfortunate death of the girl, the account is closed, and the balance is rendered to the guardian with the accrued interest.
Tax Benefits in Sukanya Samriddhi Yojana
A tax-free scheme under the EEE (Exempt-Exempt-Exempt) category is one of the greatest benefits of Sukanya Samriddhi Yojana.
The workings of the tax benefits are as follows:
- The deposit amount in SSY is eligible for deduction under Section 80C of the Income Tax Act, up to Rs. 1.5 lakh per annum.
- Interest on deposits is not taxed at all.
- The amount and withdrawals of the maturity are also tax-free.
This triple tax exemption makes SSY one of the most desirable and safe investments for parents.
Transfers of Sukanya Samriddhi Account
Sukanya Samriddhi Yojana also allows easy transfer of the account to any post office or bank in India.
This has been very useful, especially for families who have to move frequently due to job changes or other factors. It is an easy process that can be undertaken at no cost by filing a transfer request with valid identification documents.
Premature Closure of the Account
Although the SSY account is a long-term savings account, there are some circumstances where it can be closed prematurely, which include:
- Death of the girl child.
- Life-threatening illness of the account holder.
- Residency change (in case the girl becomes an NRI).
In such situations, the balance and interest due to the date of closing are paid to the guardian.
The Benefits of Sukanya Samriddhi Yojana
Sukanya Samriddhi Scheme can be ranked among the most suitable governmental investment schemes that parents choose, as the benefits of this scheme are many:
- Large interest rate relative to other small savings programs.
- Guaranteed government investments that are safe.
- Creation of a corpus in the long term to educate or remarry.
- Tax exemption on deposit, interest and maturity in full.
- Account management by banks and postal offices is easy.
These benefits make the Sukanya Samriddhi Yojana a sure and safe financial plan for your girl child’s future.
Conclusion
Sukanya Samriddhi Yojana (SSY) is one of the initiatives to empower girls financially in India. It is a quality, long-term savings account that any parent can use because it offers a high interest rate, flexible deposit options, and tax-free withdrawals.
By opening a Sukanya Samriddhi Account at a young age, parents can ensure that their daughter’s education and marriage costs are financially secured, with no burden on the family in the future.
To seek professional help with learning the rules, eligibility, and opening an account, speak to the financial and legal advisory services section of Kanakkupillai. Kannakupillai offers government savings schemes, tax planning, and end-to-end investment documentation to assist the government in making informed financial decisions.
