The Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme launched by Prime Minister Narendra Modi in 2015 under the Beti Bachao Beti Padhao campaign. It is designed to secure the financial future of girl children in India by offering high-interest rates, tax benefits, and long-term savings.
If you’re a parent looking for a safe and high-return investment for your daughter’s education or marriage, this 1,500-word guide covers everything—eligibility, interest rates, tax benefits, withdrawal rules, and how to open an SSY account.
Table of Contents
- What is Sukanya Samriddhi Yojana (SSY)?
- Key Features of SSY Scheme
- Eligibility Criteria for SSY
- Documents Required to Open an SSY Account
- How to Open a Sukanya Samriddhi Yojana Account? (Online & Offline)
- Sukanya Samriddhi Yojana Interest Rate (2024)
- Tax Benefits Under SSY (Section 80C)
- Deposit Rules & Maximum Investment Limit
- Withdrawal Rules & Maturity Period
- SSY vs Other Child Savings Schemes (Comparison)
- Frequently Asked Questions (FAQs)
1. What is Sukanya Samriddhi Yojana (SSY)?
The Sukanya Samriddhi Yojana (SSY) is a small savings scheme operated by the Government of India under the Ministry of Finance. It encourages parents to save for their girl child’s future expenses, such as education and marriage.
- Launched: January 22, 2015
- Account Type: Savings account (only for girls)
- Interest Rate: 8.2% (Q1 2024) – Compounded annually
- Tenure: 21 years (or until marriage after age 18)
- Minimum Deposit: ₹250/year
- Maximum Deposit: ₹1.5 lakh/year
✅ Best for: Parents who want safe, high-return, tax-free savings for their daughters.
2. Key Features of Sukanya Samriddhi Yojana
- Higher Interest Rate (Currently 8.2%)
- Tax-Free Returns (Exempt under Section 80C)
- Flexible Deposits (Minimum ₹250 – Maximum ₹1.5 lakh/year)
- Long-Term Savings (Maturity: 21 years)
- Partial Withdrawal Allowed (After age 18 for education)
- Government-Backed Scheme (Zero risk)
3. Eligibility Criteria for SSY
| Parameter | Details |
|---|---|
| Who can open? | Parents/legal guardians of a girl child below 10 years |
| Child’s Age Limit | Below 10 years at account opening (Can be extended to 14 years in some cases) |
| Number of Accounts | Max 2 per family (Only 1 account per girl child) |
| NRI Eligibility | No (Only Indian residents) |
⚠️ Note: Twin girls can have separate accounts, but the third girl’s account is not allowed under SSY.
4. Documents Required to Open an SSY Account
- Birth Certificate of the girl child
- Aadhaar Card of parent/guardian & child
- Address Proof (Passport, Voter ID, Aadhaar)
- PAN Card (Mandatory for tax benefits)
- Passport-size photos (Child & Guardian)
5. How to Open a Sukanya Samriddhi Yojana Account?
A. Offline Method (Via Post Office/Bank)
- Visit nearest Post Office or authorized bank (SBI, PNB, etc.).
- Fill Form-1 (SSY Application Form).
- Submit KYC documents (Aadhaar, Birth Certificate).
- Deposit minimum ₹250 to activate the account.
- Get SSY passbook & account number.
B. Online Method (Via Net Banking)
- Log in to net banking (SBI, ICICI, etc.).
- Go to “Sukanya Samriddhi Yojana” under “Schemes”.
- Fill details & upload documents.
- Make initial deposit (₹250-₹1.5 lakh).
- E-Account is created instantly.
6. Sukanya Samriddhi Yojana Interest Rate (2025)
- Current Interest Rate (2024): 8.2% per annum (Quarterly updates by Govt.)
- Interest Calculation: Compounded annually
- Historical Rates:
- 2023-24: 8.0% → 8.2% (Increased)
- 2022-23: 7.6%
- 2021-22: 7.6%
💡 Why SSY Beats FD & PPF?
- Higher returns than Bank FDs (6-7%) & PPF (7.1%).
- Tax-free maturity (Unlike FDs, which are taxable).
7. Tax Benefits Under SSY (Section 80C)
✅ Eligible for Deduction: Up to ₹1.5 lakh/year under Section 80C.
✅ Tax-Free Interest: No tax on accumulated interest.
✅ Maturity Amount Tax-Free: Entire withdrawal is tax-exempt.
Example:
- If you invest ₹1.5 lakh/year for 15 years, total investment = ₹22.5 lakh.
- At 8.2% interest, maturity value ≈ ₹65-70 lakh (tax-free).
8. Deposit Rules & Maximum Investment Limit
| Rule | Details |
|---|---|
| Minimum Deposit | ₹250/year |
| Maximum Deposit | ₹1.5 lakh/year |
| Deposit Frequency | Yearly/Lump-sum |
| Payment Mode | Cash/Cheque/Online |
| Account Validity | 21 years (or until marriage after 18) |
⚠️ Penalty: If minimum ₹250/year is not deposited, a ₹50 penalty applies.
9. Withdrawal Rules & Maturity Period
✅ Partial Withdrawal (After 18 Years):
- 50% of balance can be withdrawn for higher education.
- Requires admission proof (College/University).
✅ Full Withdrawal (Maturity):
- After 21 years, full amount is paid.
- If girl turns 21 before maturity, account earns interest till maturity.
✅ Premature Closure (Special Cases):
- Allowed in medical emergencies or death of guardian.
10. SSY vs Other Child Savings Schemes (Comparison)
| Scheme | Interest Rate | Tax Benefit | Lock-in Period |
|---|---|---|---|
| SSY | 8.2% | 80C (₹1.5L) | 21 years |
| PPF | 7.1% | 80C (₹1.5L) | 15 years |
| Bank FD | 6-7% | Taxable | 1-10 years |
| Mutual Funds | Market-linked | LTCG Tax | 3+ years |
Why SSY Wins?
✔ Higher interest than PPF & FDs
✔ Tax-free maturity
✔ Government-guaranteed returns
11. Frequently Asked Questions (FAQs)
Q1. Can I open an SSY account for a 12-year-old girl?
No, the maximum age limit is 10 years (extendable to 14 in some cases).
Q2. What happens if I miss a yearly deposit?
A ₹50 penalty is charged, but the account remains active.
Q3. Can NRI parents open an SSY account?
No, only Indian residents are eligible.
Q4. Is SSY better than PPF for a girl child?
Yes, because of higher interest (8.2% vs 7.1%) and tax-free maturity.
Q5. Can I transfer my SSY account to another bank/post office?
Yes, by submitting a transfer request form.
Conclusion – Should You Invest in SSY?
✅ Best for: Parents who want risk-free, high-return savings for their daughter’s education & marriage.
✅ Benefits: 8.2% interest, tax-free returns, govt-backed security.
🚀 Action Step: Open an SSY account before your daughter turns 10 to maximize benefits!
📌 Pro Tip: Invest ₹1.5 lakh/year to get ₹65L+ tax-free at maturity!