If you want to create a large, safe, and tax-free fund for your daughter’s future, Sukanya Samriddhi Yojana (SSY) is one of the most reliable schemes to consider. Run by the Government of India, this scheme not only offers attractive interest but also provides tax savings. What makes it more impressive is how small monthly savings can grow into a huge amount by the time your daughter turns 21.
Let’s understand how an investment of ₹15 lakh in 15 years can turn into more than ₹47 lakh on maturity.
What Is Sukanya Samriddhi Yojana (SSY)?
Sukanya Samriddhi Yojana is a government savings scheme meant for the girl child. The scheme is specially designed to promote savings for a daughter’s higher education and marriage. Parents or guardians can open an account under this scheme in the name of their girl child before she turns 10 years old.
As of now, SSY offers an annual interest rate of 8.2%, which is among the highest in government small savings schemes. The scheme comes with the benefit of compound interest and tax exemptions under Section 80C of the Income Tax Act.
Key Features of SSY
- Interest Rate: 8.2% per annum (compounded yearly)
- Investment Tenure: Contribute for 15 years, maturity at 21 years from account opening
- Tax Benefit: Up to ₹1.5 lakh under Section 80C; interest and maturity amount are also tax-free
- Minimum Investment: ₹250 per year
- Maximum Investment: ₹1.5 lakh per year
- Eligibility: Girl child below 10 years of age
- Account Limit: Two girl children per family (third allowed in case of twins)
How ₹15 Lakh Investment Becomes ₹47 Lakh
Let’s break down the investment journey using a simple example:
- Monthly Investment: Around ₹8,350
- Yearly Investment: ₹1,00,000
- Total Investment (15 years): ₹15,00,000
- Interest Earned (till maturity): ₹32,88,079
- Maturity Amount (after 21 years): ₹47,88,079
The beauty of the scheme lies in compound interest and no investment needed after 15 years. Even though you stop contributing after 15 years, your money continues to earn interest for the next 6 years.
Why SSY Is a Smart Choice for Parents
1. Safe and Government-Backed
Since this is a government scheme, it comes with almost zero risk. It’s ideal for those who want peace of mind along with decent returns.
2. Tax-Free Growth
Not only do you get deductions under Section 80C, but the interest and the final amount at maturity are also completely tax-free.
3. Encourages Long-Term Discipline
By locking the funds for 21 years, this scheme builds discipline and ensures you create a meaningful corpus for your daughter’s future.
Who Can Open an SSY Account?
Parents or legal guardians can open this account in the name of their daughter before she turns 10. One account per girl child is allowed, with a maximum of two accounts in a family. In the case of twins or triplets, more than two accounts may be permitted.
How to Open an SSY Account?
You can open an SSY account at any:
- Post Office
- Authorized public bank (e.g., SBI, Bank of Baroda)
- Select private banks (e.g., ICICI Bank, Axis Bank)
You need to submit:
- Girl child’s birth certificate
- Parent/guardian’s identity and address proof
- Passport-size photographs
Once the account is opened, you can deposit online or offline, monthly or yearly.
Important Rules to Remember
- You must deposit at least ₹250 per year to keep the account active
- If not, the account gets deactivated and can be revived by paying a penalty
- Premature withdrawal is allowed only in specific cases like the girl’s marriage after 18 or higher education
- Full withdrawal is only allowed after 21 years from the account opening
Who Should Consider Investing in SSY?
- Parents who want to secure their daughter’s future
- Families looking for safe, long-term investments
- Taxpayers who want to save tax and earn high interest without market risk
This scheme works best when you invest regularly without break and wait till full maturity.
