Sukanya Samriddhi Yojana Calculator
Plan your daughter's future with this government-backed savings scheme
Investment Details
Projected Returns
Your daughter will be 21 years old at maturity
She can use the funds for higher education or marriage
Investment Breakdown
Complete Guide to Sukanya Samriddhi Yojana (SSY) - Benefits, Eligibility & How to Invest
The Sukanya Samriddhi Yojana (SSY) is a transformative savings scheme launched by the Government of India as part of the "Beti Bachao, Beti Padhao" campaign. This small savings scheme is specifically designed to secure the financial future of the girl child in India. With attractive interest rates and tax benefits, SSY has become one of the most popular long-term investment options for parents planning for their daughter's education and marriage expenses.
Key Takeaway: SSY offers an interest rate of 8.2% for the October-December 2025 quarter, with deposits eligible for tax deduction under Section 80C of the Income Tax Act up to ₹1.5 lakh per year.
What is Sukanya Samriddhi Yojana?
Sukanya Samriddhi Yojana is a government-backed savings scheme that aims to encourage parents to build a corpus for their daughter's future expenses. Launched in 2015 by Prime Minister Narendra Modi, this scheme helps in addressing the issue of gender inequality by promoting financial independence for the girl child.
The scheme operates as a dedicated savings account that can be opened in the name of a girl child below 10 years of age. The account matures after 21 years from the date of opening, providing a substantial corpus that can be used for the girl's higher education or marriage expenses.
Key Features of Sukanya Samriddhi Yojana
Scheme Overview
- Government-backed savings scheme
- Account for girl child below 10 years
- 21-year maturity period
- Deposits for 15 years from opening
Investment Details
- Minimum deposit: ₹250 per year
- Maximum deposit: ₹1.5 lakh per year
- Current interest: 8.2% p.a.
- Tax benefits under Section 80C
Withdrawal Rules
- Partial withdrawal after age 18
- Up to 50% for higher education
- Account closure after age 21
- Premature closure in special cases
Eligibility Criteria for Sukanya Samriddhi Yojana
To open an SSY account, certain eligibility criteria must be met:
- Age of Girl Child: The account can be opened for a girl child until she attains the age of 10 years. The earlier you open the account, the longer the compounding period and higher the returns.
- Number of Accounts: Parents or legal guardians can open only one SSY account per girl child, with a maximum of two accounts for two girl children in a family. In case of twin girls or triplets, special provisions may apply.
- Residential Status: The scheme is available to Indian residents only. NRIs are not eligible to open new SSY accounts, though accounts opened before obtaining NRI status can continue until maturity.
- Documents Required: Birth certificate of the girl child, address proof, identity proof of parent/guardian, and passport-sized photographs are typically required.
Interest Rates and Calculation
The interest rate for Sukanya Samriddhi Yojana is reviewed and revised by the government every quarter. Historically, SSY has offered higher interest rates compared to other small savings schemes. The interest is compounded annually and credited to the account at the end of each financial year.
Our SSY calculator helps you project the potential returns based on current interest rates. The power of compounding in a long-term scheme like SSY can significantly multiply your investment over the 21-year period.
Pro Tip: Starting an SSY account when your daughter is born maximizes the compounding effect. A monthly investment of just ₹1,000 can grow to approximately ₹6.3 lakhs over 21 years at the current interest rate.
Tax Benefits of Sukanya Samriddhi Yojana
SSY offers a triple tax benefit under the Income Tax Act, making it one of the most tax-efficient investment options:
- Section 80C Deduction: Contributions up to ₹1.5 lakh per year are eligible for deduction from taxable income.
- Tax-Free Interest: The interest earned on the SSY account is completely tax-free.
- Tax-Free Maturity: The entire maturity amount, including interest, is exempt from tax upon withdrawal.
This EEE (Exempt-Exempt-Exempt) status makes SSY more attractive than many other investment options that may offer tax benefits only on contribution or may tax the maturity amount.
How to Open an SSY Account
Opening an SSY account is a straightforward process:
- Visit any authorized bank or post office that offers the scheme
- Fill out the SSY account opening form
- Provide necessary documents including birth certificate of the girl child
- Make the initial deposit (minimum ₹250)
- Collect the passbook and account details
Many banks also offer the facility to open SSY accounts online through their internet banking portals, making the process even more convenient.
Withdrawal Rules and Premature Closure
The SSY scheme has specific rules regarding withdrawals and account closure:
- Partial Withdrawal: After the account holder attains 18 years of age, up to 50% of the balance can be withdrawn for higher education expenses.
- Maturity: The account matures after 21 years from the date of opening, when the entire corpus can be withdrawn.
- Premature Closure: In case of the account holder's marriage after 18 years or in the event of her death, the account can be closed prematurely.
- Default in Deposits: If minimum deposits are not made, the account becomes inactive but can be revived with a penalty.
Comparing SSY with Other Investment Options
When compared to other popular investment avenues, SSY offers several advantages:
- Higher Interest Rates: SSY typically offers higher interest rates compared to bank fixed deposits and some other small savings schemes.
- Tax Efficiency: The triple tax benefit is unmatched by most other investment options.
- Government Backing: As a government scheme, it carries minimal risk compared to market-linked investments.
- Long-Term Focus: The 21-year lock-in period encourages disciplined long-term saving.
However, the long lock-in period and restrictions on withdrawals may not suit everyone's financial needs. It's important to consider your overall financial plan before investing.
Frequently Asked Questions (FAQs)
The current interest rate for Sukanya Samriddhi Yojana is 8.2% per annum for the October-December 2025 quarter. Interest rates are revised quarterly by the government and compounded annually.
Yes, legal guardians including adoptive parents can open an SSY account for their daughter. You will need to provide relevant legal documents proving guardianship during account opening.
If you miss depositing in a particular financial year, the account becomes inactive. You can reactivate it by paying a penalty of ₹50 per year along with the minimum deposit of ₹250 for each missed year.
Yes, SSY accounts can be transferred between authorized banks and post offices. You need to submit a transfer application along with the necessary documents at the new location.
No, the interest rate for SSY is not fixed for the entire tenure. It is revised by the government every quarter. However, the rate applicable at the time of deposit remains locked for that particular deposit.
No, NRIs cannot open new SSY accounts. However, if an account was opened when the parents were residents of India, it can continue until maturity even after they become NRIs.
The maximum deposit limit for an SSY account is ₹1.5 lakh per financial year. There is no limit on the number of deposits you can make in a year as long as the total doesn't exceed this limit.
Yes, grandparents can open an SSY account for their granddaughter provided they are her legal guardians. Otherwise, the natural or adoptive parents should open the account.
Conclusion
The Sukanya Samriddhi Yojana is an excellent investment vehicle for securing your daughter's financial future. With its attractive interest rates, tax benefits, and government backing, it provides a safe and rewarding way to build a substantial corpus for her education and marriage expenses.
By starting early and investing consistently, you can leverage the power of compounding to create significant wealth over the 21-year tenure. Use our SSY calculator to plan your investments and visualize the potential returns based on your contribution pattern.
Remember, while SSY is a great scheme, it should be part of a comprehensive financial plan that includes other investments, insurance, and emergency funds to ensure complete financial security for your family.
