Deposit in your Daughter’s future!


In line with the above objectives, Prime Minister Narendra Modi launched a child education plan called ‘Sukanya Samriddhi Yojana (SSY)’ as part of the Beti Bachao Beti Padhao Campaign.

On January 22, 2015, the Government of India launched a social campaign to address the major issue of our country’s declining child sex ratio. The Beti Bachao Beti Padhao (BBBP) campaign’s message is ‘Save girls, educate girl children.’

This is a national initiative co-led by the Ministries of Women and Child Development, Health and Family Welfare, and Human Resource Development.

What is the Sukanya Samriddhi Yojana (SSY)?

Sukanya Samriddhi Yojana aims to address a major issue concerning the girl child: education and marriage. It seeks to secure a bright future for the girl child in India by assisting parents of a girl child in establishing a fund for their child’s proper education and carefree marriage expenses. For this purpose, Sukanya Samriddhi Yojana has created the Sukanya Samriddhi Account.

Benefits of Investing in Sukanya Samriddhi Yojana (SSY) 

Sukanya Samriddhi Yojana, introduced as part of the Beti Bachao, Beti Padhao Yojana initiative, offers a variety of benefits to investors. The following are some of the main advantages of this child education plan:

1. Affordable Payments

The Sukanya Samriddhi Yojana account requires a minimum deposit of Rs.250 per fiscal year. You can deposit up to Rs.1.5 lakh per fiscal year whenever convenient for you.

The payments appear to be very affordable for people from all walks of life. Even if you miss a year’s worth of expenses, a penalty of Rs.50 will be levied on the missed minimum payment of Rs.250, but the account will be kept open.

2. Educational Expenses Covered

You can withdraw 50% of the account balance from the previous fiscal year’s end to cover your girl child’s educational expenses. This is available after submitting proof of admission.

3. Tax Benefits

You can withdraw 50% of the account balance from the previous fiscal year’s end to cover your girl child’s educational expenses. This is available after submitting proof of admission.

4. Attractive Interest Rates

Compared to any other government-backed child education plan, the interest rate on Sukanya Samriddhi Yojana accounts has always been high. The current annual rate is 7.6 percent.

Tax Benefits Of Sukanya Samriddhi Yojana (SSY) 

To encourage investments in SSY, the SSA has been granted the following tax breaks:

● Investments in the Sukanya Samriddhi Yojana scheme are eligible for Section 80C deductions, up to Rs 1.5 lakh.

● The interest earned on this account, compounded annually, is also tax-free.

● The proceeds received upon maturity/withdrawal are also tax-free.

Eligibility For Sukanya Samriddhi Yojana (SSY) 

● Only a girl child’s parents or legal guardians are eligible to open a Sukanya Samriddhi Yojana account.

● The girl child must be under the age of ten when the account is opened.

● Only one account can be opened in the name of a girl child.

● A family may only have two SSY versions, one for each girl child.

Note: Sukanya Samriddhi Accounts can be opened for more than two girls in the following circumstances:

● A third account can be opened if a girl child is born before twin or triplet girls or if triplets are taken first.

● A third SSY account cannot be opened if a girl child is born after twin or triplet girls.

Withdrawal Rules For Sukanya Samriddhi Yojana

The following are the withdrawal rules for the Sukanya Samriddhi Yojana account:

● The girl child can withdraw the entire amount available in the account, including the interest, once the report’s duration has expired. The following documents, however, must be submitted:

1. Application form for the withdrawal of the amount.

2. ID proof

3. Address proof

4. Citizenship documents

● Withdrawal for higher education is permitted if the girl child has reached the age of 18 and has completed the 10th grade. The money, however, must be used for the admission fee or any other charges levied at the time of admission.

● When applying for a withdrawal, documents such as admission to the university or college and the fee receipt must be submitted.

● The maximum amount that can be withdrawn is half of what was available the previous year. The funds can be removed in five equal installments or one lump sum.

How to claim/withdraw sukanya samriddhi yojana? 

The duly completed withdrawal form and the SSY account passbook must be submitted to the bank or Post Office branch where the account is maintained.

To claim or withdraw prematurely, you must meet certain conditions, such as paying for marriage expenses or the girl child’s higher education. The amount will be delivered to the girl child who holds the account when it matures.

In another case, you may close the account prematurely and claim the deposit amount only after five years of account opening for the following reasons:

● When the account holder dies.

● A/C holder’s life-threatening sickness.

● The guardian who ran the account died.

Frequency Of Investment Allowed Under Sukanya Samriddhi Yojana

You can fund your Sukanya Samriddhi Yojana account once per fiscal year or in smaller, regular installments. To keep the account active and running, you must make a minimum payment of Rs.250 per fiscal year and adhere to this criterion for a minimum payment period of 15 years.

If you choose to make payments in installments, the interval between installments can be as long as you like. There are no limits to the number of deposits you can make in a month or fiscal year.

Wrapping It Up

The Sukanya Samriddhi Yojana aims to improve girls’ lives in the country. It was launched to provide a means of saving for every family’s girl child. The Sukanya Samriddhi Yojana is valid for 21 years from the date of opening the account or until the girl reaches the age of marriage after 18.

Read Also: Verifying Your Eligibility For the Received Income Credit (EIC)