Planning for your daughter’s education and marriage can feel overwhelming, especially with rising costs. To support families in securing a better future for their girl child, the Indian government introduced the Sukanya Samriddhi Yojana (SSY) under the Beti Bachao Beti Padhao campaign in 2015.
This small savings scheme offers attractive returns, tax advantages and long-term benefits, making it one of the best government savings schemes for girl children.
What Is Sukanya Samriddhi Yojana (SSY)?
The Sukanya Samriddhi Yojana (SSY) is a dedicated savings scheme launched by the Government of India to encourage savings for a girl child’s future education and marriage expenses. It can be opened by parents or guardians for a girl child under the age of 10.
The scheme offers one of the highest interest rates among all small savings schemes and enjoys tax benefits that make it especially appealing to Indian families.
Benefits of Sukanya Samriddhi Yojana
1. Low Minimal Investment to Open an SSY Account
You can open a Sukanya Samriddhi Yojana account with just ₹250, making it accessible to almost everyone. The maximum annual deposit limit is ₹1.5 lakh. Deposits must be made for 15 years from the account opening date. If you miss a year, you can still revive the account by paying a penalty of ₹50 per year along with the minimum deposit amount. This flexibility makes the SSY deposit easy to maintain even during financial hardships.
2. Helps Secure Your Daughter’s Education
One of the biggest Sukanya Samriddhi Yojana benefits is that it helps build a fund for higher education. Once your daughter turns 18, up to 50% of the balance can be withdrawn to cover educational expenses. Admission proof from a recognised institution is required. This early withdrawal option ensures that your daughter’s academic ambitions are not compromised due to financial constraints.
3. Triple Tax Advantage
Among all government savings schemes, SSY stands out with its EEE (Exempt-Exempt-Exempt) tax status. This means:
- Deposits of up to ₹1.5 lakh per year qualify for deduction under Section 80C of the Income Tax Act.
- The interest earned on your SSY deposit is completely tax-free.
- The maturity amount is also exempt from tax.
4. Attractive Interest Rates
The Sukanya Samriddhi scheme (SSS) offers one of the most attractive interest rates among government-backed saving instruments. While the rates are revised quarterly, they typically remain higher than those offered by fixed deposits or other savings accounts. For example, in Q1 FY25-26 quarter, the interest rate has hovered around 8.2%, making it a solid long-term investment option for parents.
5. Deposit for 15 Years, Benefits for 21 Years
Under the Sukanya Samriddhi Yojana, deposits are only required for the first 15 years, even though the scheme matures after 21 years from the date of account opening. During the remaining 6 years, the account continues to earn interest, which significantly adds to the final corpus without requiring any additional deposits.
6. Premature Withdrawal for Special Situations
The scheme is designed with sensitivity to real-life hardships. After completing 5 years, premature withdrawal is permitted under special conditions such as:
- Medical emergencies involving life-threatening diseases
- Death of the parent or guardian
Additionally, the account can be closed once the girl child turns 18, provided she is getting married. The intention must be declared at least one month before or within three months after the marriage date.
7. Account Revival and Flexibility
If an account becomes inactive due to non-payment, it can be revived by paying a nominal fee of ₹50 per year of default, along with the minimum deposit for that year. This flexibility makes the Sukanya Samriddhi scheme (SSS) practical for families who may experience temporary financial difficulty.
8. Multiple Account Facility
Families can open an SSY account for up to two girl children. In cases of twins or triplets, a third account is also permitted. This ensures that all eligible daughters in a family can benefit from the scheme, making it a family-friendly option among government savings schemes.
Conclusion
The Sukanya Samriddhi Yojana benefits are not just financial—they reflect a commitment to empowering the girl child through education and security. With tax reliefs, high returns, and flexibility, the scheme provides both peace of mind and a strong financial foundation. Whether you’re saving for your daughter’s education or planning for her wedding, Sukanya Samriddhi Yojana (SSY) is a reliable and rewarding investment choice.
