Let us see Sukanya Samriddhi Yojana investment scheme in India below in detailed.
The Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme launched in 2015 under the Beti Bachao Beti Padhao initiative to promote the welfare of girl children in India. It offers secure, long-term savings with an attractive interest rate of 8.2% per annum for Q2 FY 2025-26, compounded annually, and full EEE tax benefits—meaning exemptions on investments up to ₹1.5 lakh under Section 80C, tax-free interest earnings, and tax-free maturity proceeds. Tailored for parents or guardians of girls under 10 years, SSY ensures capital protection and supports goals like higher education or marriage.
Where Should I Apply for an SSY Account?
Open SSY accounts at authorized post offices or banks with basic KYC documents like Aadhaar, PAN, birth certificate, photo, and address proof.
- Post Offices: All head and sub-post offices; ideal for rural access with cash deposits allowed.
- Authorized Banks: SBI, PNB, Bank of Baroda, HDFC, ICICI, Axis, Kotak Mahindra (designated branches).
- Online Options: Through net banking of select banks using Aadhaar eKYC for quick setup.
Use Form SSY-1, include nominee details, guardians open for girls under 10. Accounts are transferable nationwide between banks/post offices.
Eligibility Criteria
SSY targets Indian resident families for girl child savings, with strict rules for focus and compliance.
- Girl Child: Under 10 years at opening, one account per girl.
- Parents/Guardians: Legal guardians can open and operate until girl turns 18.
- Family Limit: Max two accounts per family (three for twins).
NRIs cannot open new accounts, existing continue till maturity without deposits. No joint or institutional accounts allowed.
Who is Not Eligible
SSY restricts participation to ensure targeted benefits for resident girl children.
- Boys: Not for boys, Exclusively for girls.
- Girls Over 10: Girls over 10 years cannot open new accounts.
- NRIs/Non-Residents: No new openings post-status change.
- Multiple Accounts per Girl: Only one nationwide per child.
Excess accounts lead to consolidation or forfeiture of excess deposits without interest.
Example
In a family with two daughters (ages 2 and 5), parents can open two SSY accounts, each with up to ₹1.5 lakh annual deposits under the guardian’s PAN (shared with other 80C investments).
Scenario 1: Father Alone Creates Both Accounts (Under His PAN)
- Max per girl: ₹1.5 lakh each (total ₹3 lakh/year across both).
- Father’s 80C limit: Only ₹1.5 lakh deductible tax (e.g., ₹75k in Girl 1 + ₹75k in Girl 2). Excess ₹1.5 lakh still grows tax-free but no deduction.
- Practical split: Father invests full ₹1.5 lakh per girl, claims ₹1.5 lakh tax benefit.
Scenario 2 : Father and Mother both Create/Invest in Accounts for Two Girls
- Max per girl: Still ₹1.5 lakh each (total ₹3 lakh/year).
- Father’s 80C: ₹1.5 lakh (e.g., full ₹1.5 lakh in Girl 1’s account).
- Mother’s 80C: ₹1.5 lakh (e.g., full ₹1.5 lakh in Girl 2’s account).
- Total family tax benefit: ₹3 lakh (₹45k savings each at 30% slab).
- Flexibility: They can split any way (Father ₹1.5 lakh Girl 1 + Mother 1.5 lakh Girl 2), as long as each stays under their ₹1.5 lakh 80C cap.
Key Features
Interest rate stands at 8.2% p.a. for Q2 FY 2025-26, set quarterly by the government and compounded annually.
- Tenure: Deposits for 15 years, maturity at 21 years from opening account.
- Deposit Limits: ₹250 min to ₹1.5 lakh max per year, lump sum or installments (up to 12).
- Taxation: Full EEE status for tax-free growth.
No market risk, government guarantee ensures principal safety.
How Interest Works in SSY
Interest calculates on the lowest monthly balance (5th to month-end) and credits annually on March 31.
Deposits before the 5th earn full month’s interest; tax-free under Section 10. Post-15 years, account continues earning till maturity. Early timing maximizes returns due to compounding.
How to Calculate?
Let us take example of three girls aged 3, 6 and 9 from three different families. Girl1 age 3, Girl2 age 6, Girl 3 age 9, in 2025.
Girl 1 age 3, Girl 2 age 6, Girl 3 age 9 (in 2025)
Yearly investment – 1,50,000
Girls age – 3, 6, 9
Start period – 2025
Investment in total in 15 years (1.5lakh /year till 2040) – 22,50,000
Interest earned in total – 46,77,578
Total maturity amount (at 21 year tenure) – 69,27,578
Maturity year – 2046
Live example – Withdrawal/Without withdrawal (50% amount at her age 18)
Suppose a girl with age 3 is taken for example, her father wants to withdraw 50% of money accumulated in end of previous year (her age is now 18) for her higher studies or for her marriage. Let us see how much her father is eligible to withdraw from her SSY account.
| Stage/Year | Age | Deposits | Invested (₹) | Balance (₹) | 50% Withdrawal (₹) | After 50% (₹) |
|---|---|---|---|---|---|---|
| End Yr 1 | 4 | 1 | 1.5L | ~1.62–1.63L | Not allowed | N/A |
| End Yr 5 | 8 | 5 | 7.5L | ~10–10.5L | Not allowed | N/A |
| End Yr 10 | 13 | 10 | 15L | ~25–26L | Not allowed | N/A |
| End Yr 15 | 18 | 15 | 22.5L | ~43–45L | ~21.5–22.5L | ~21.5–22.5L |
| Maturity 21 (no wdrl) | 24 | 15 | 22.5L | ~69–71L | — | — |
| Maturity 21 (50%@18) | 24 | 15 | 22.5L | ~26–28L | Taken:~21.5–22.5L | ~26–28L |
If she never withdraws at 18:
Invested: ₹22.5 lakh over 15 years.
Gets roughly ₹69–71 lakh at 21-year maturity.
So girl gets total 69-71 lakhs, all tax free amount for investing 22.5 lakh total in 15 years, if not withdrawn 50% amount at her 18 years.
If she withdraws full 50% at 18:
At 18: Withdraws about ₹21.5–22.5 lakh (for education or marriage).
Remaining ~₹21.5–22.5 lakh continues 3 more years and becomes about ₹26–28 lakh at 21.
So girl gets total 21.5–22.5L (age 18) + 26–28L (age 21) ≈ 47–50 lakh, all tax-free amount for investing 22.5 lakh total in 15 years, if withdrawn 50% amount at her 18 years.
Loans, Withdrawals & Extensions
No loans available, emphasizing long-term commitment.
- Withdrawals: From age 18, up to 50% of prior year-end balance for education/marriage (one per year).
- Premature Closure: Allowed if girl marries after 18, dies, or extreme hardship (2-year lock-in min).
- Maturity: Full access at 21 years; continues earning post-deposit phase.
Common Mistakes & Penalties
- Multiple accounts per girl: Tracked via Aadhaar, excess forfeited.
- Missing min ₹250/year: Account discontinued, ₹50 penalty.
- Exceeding ₹1.5 lakh: Excess doesn’t earn interest, refunded. Use current 8.2% for calculations.
SSY Example (₹1.5 Lakh/Year for 15 Years at 8.2%)
Let us take example for an age 3 girl
| Year | Age | Deposit | Cumulative Principal | Approx Balance |
|---|---|---|---|---|
| 1 | 4 | ₹1.5L | ₹1.5L | ₹1.62L |
| 5 | 8 | ₹1.5L | ₹7.5L | ₹10.1L |
| 10 | 13 | ₹1.5L | ₹15L | ₹25.3L |
| 15 | 18 | ₹1.5L | ₹22.5L | ₹43-45L |
| 16-21 | 24 | ₹0 | ₹22.5L | ₹69-71L |
Final Totals: Investment ₹22.5 lakh
Maturity ~ 69-71 lakh
Interest ~₹46-47 lakh (tax-free)
Tax savings up to ₹45,000/year (30% slab, old regime) total ₹6.75 lakh for 21 years tenure.
This is all about Sukanya Samriddhi Yojana (SSY) investment scheme in India.
Exactly! That’s a clear and concise way to highlight SSY’s purpose and eligibility.
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