Sukanya Samriddhi Yojana (SSY) – Eligibility, Interest Rate, and Returns in 2023
Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme in India that aims to provide financial security to the girl child. The scheme was launched in 2015 as a part of the “Beti Bachao, Beti Padhao” campaign, and offers attractive interest rates and tax benefits to encourage parents to save for their daughter’s future. In this article, we will provide a detailed overview of the Sukanya Samriddhi Yojana, meaning, including its features, advantages, disadvantages, benefits, eligibility criteria, and how to open an account.

If you are a parent looking to secure your daughter’s future or an investor seeking a reliable savings scheme, this article will provide you with all the information you need to know about the Sukanya Samriddhi Yojana. So, let’s explore this scheme and find out how it can help you secure your daughter’s future.
What is Sukanya Samriddhi Yojana (SSY) Key Details
Key details about Sukanya Samriddhi Yojana (SSY):
Key Details | Information |
---|---|
Scheme Name | Sukanya Samriddhi Yojana |
Launched By | Government of India |
Year of Launch | 2015 |
Target Audience | Parents or legal guardians of girl children |
Minimum Age of Girl Child | 10 years |
Maximum Age of Girl Child | 18 years |
Account Opening | Only one account can be opened for a girl child |
Minimum Deposit | Rs. 250 per year |
Maximum Deposit | Rs. 1.5 lakh per year |
Interest Rate | 8.0% |
Interest Rate Revised On | 1st April 2023 |
Maturity Period | 21 years from the date of opening the account |
Partial Withdrawal | Allowed after the girl child reaches the age of 18 years |
Tax Benefits | Contributions are eligible for deduction under Section 80C of the Income Tax Act, 1961 |
Eligibility for Account Transfer | The account can be transferred anywhere in India |
Penalty for Non-Deposit | If the minimum deposit is not made, the account becomes inactive and can be revived by paying a penalty of Rs. 50 per year along with the minimum deposit amount |
Note: The information provided in the table is subject to change, and readers are advised to verify the latest details with the concerned authorities before taking any financial decisions.
What is Sukanya Samriddhi Yojana (SSY) and Meaning?
Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme in India that is designed to provide financial security to the girl child. The scheme was launched in 2015 as a part of the “Beti Bachao, Beti Padhao” campaign and is available to parents or legal guardians of a girl child under the age of 10 years.
Under the Sukanya Samriddhi Yojana, parents can open a savings account in the name of their daughter and make regular contributions towards her future expenses, such as education, marriage, and other important life events. The account can be opened with a minimum deposit of Rs. 250 and a maximum deposit of Rs. 1.5 lakh per financial year.
The account has a tenure of 21 years or until the girl child gets married, whichever is earlier. The account offers an attractive interest rate, which is set by the government every quarter and is currently at 7.6% per annum. The interest earned on the account is compounded annually and is tax-free.
One of the main benefits of the Sukanya Samriddhi Yojna is the tax benefits it offers. Contributions made towards the account are eligible for a tax deduction of up to Rs. 1.5 lakh per financial year under Section 80C of the Income Tax Act, 1961. Additionally, the interest earned and the maturity amount are tax-free.
To open a Sukanya Samriddhi Yojna account, parents or legal guardians need to provide the girl child’s birth certificate or school certificate as proof of age, as well as their own identity proof and address proof. The account can be opened at any post office or authorized bank branch.
Sukanya Samriddhi Yojana is a reliable and attractive savings scheme for parents looking to secure their daughter’s futures. With its high-interest rates, tax benefits, and long tenure, the scheme is a great investment option for those seeking to provide financial security to their girl child.
What are the Rules for Sukanya Samriddhi Yojana?
As per DEA India Below are the rules for Sukanya Samriddhi Yojana:
- The account can be opened in the name of a girl child till she attains the age of 10 years.
- Only one account can be opened in the name of a girl child.
- The account can be opened in the Post office and branches of authorized banks.
- The birth certificate of the girl child in whose name the account is opened must be submitted.
- The account can be opened with a minimum of Rs. 250/- and thereafter any amount in multiples of Rs. 100/- can be deposited. A minimum of Rs. 250/- must be deposited in a Financial year.
- A maximum of Rs. 1,50,000/- can be deposited in a financial year.
- Interest @ as may be notified by the government from time to time will be calculated on a yearly compounded basis and credited to the account.
- One withdrawal shall be allowed upon attaining the age of 18 years of the account holder to meet education expenses up to 50 % of the balance at the credit of the preceding financial year.
- The account can be transferred anywhere in India from one post office/bank to another.
- The account shall mature on completion of 21 years from the date of opening of the account or on the marriage of the Account holder whichever is earlier.
Looking for investment for your daughter? Consider reading: Top 10 Best investment options in India
What are the Advantages of Sukanya Samriddhi Yojana?
Here are some of the key advantages of the Sukanya Samriddhi Yojana (SSY) scheme:
- High rate of interest: The Sukanya Samriddhi Yojna (SSY) account earns a fixed rate of interest, which is determined by the government every quarter. The interest rate is currently set at 7.6% per annum.
- Tax benefits: The interest earned on a Sukanya Samriddhi Yojana (SSY) account is tax-free under the Income Tax Act. In addition, deposits made to the account are eligible for tax deductions under Section 80C of the Income Tax Act.
- Long-term savings: The Sukanya Samriddhi Yojna (SSY) account matures when the girl reaches the age of 21 or when the account has been in operation for 21 years, whichever is earlier. This encourages long-term saving and financial planning for the future.
- Security: The SSY scheme is backed by the government, which adds an element of security to the investment.
- Easy to open and operate: The Sukanya Samriddhi Yojna (SSY) account can be opened at a bank or a post office and requires a minimum deposit of INR 250. Deposits can be made in cash, by check, or through electronic transfer.
- Promotes the welfare of girls: The SSY scheme is part of the “Beti Bachao, Beti Padhao” campaign, which aims to promote the welfare of girls in India. By encouraging parents to save for their daughter’s future, the scheme helps to reduce the economic burden on families and promotes gender equality.
What are the Disadvantages of Sukanya Samriddhi Yojana?
Here are some potential disadvantages of the Sukanya Samriddhi Yojana (SSY) scheme:
- Limited flexibility: The SSY scheme is designed specifically for saving for the education and marriage expenses of a daughter. While withdrawals are allowed under certain circumstances, premature withdrawal is not allowed before the completion of 18 years from the date of opening the account, except in case of the death of the depositor or the girl. This can limit the flexibility of the investment.
- Limited investment options: The SSY scheme only allows for the investment of funds in a fixed deposit account, which may not provide the same level of potential returns as other investment options.
- Limited to daughters: The SSY scheme is only available for daughters, which may not be suitable for families with only sons or families that want to save for the education and marriage expenses of both daughters and sons.
- Limited to Indian residents: The SSY scheme is only available to residents of India, which may not be suitable for non-residents or foreign investors.
Is Premature Withdrawal Allowed in Sukanya Samriddhi Yojana?
Premature withdrawal is allowed in Sukanya Samriddhi Yojana in 2 cases:
1. In the event of the death of the account holder, the account shall be closed immediately upon production of the death certificate issued by the competent authority, and the balance at the credit of the account shall be paid along with interest till the month preceding the month of premature closure of the account, to the guardian of the account holder.
2. Where the Central Government is satisfied that operation or continuation of the account is causing undue hardship to the account holder, it may, by order, for reasons to be recorded in writing, allow pre-mature closure of the account only in cases of extreme compassionate grounds such as medical support in life-threatening diseases, death, etc.
Is it Good to Invest in Sukanya Samriddhi Yojana?
Investing in Sukanya Samriddhi Yojna may not be the best decision if you are looking for good returns for your girl child. But If you are looking for a secure investment that gives the highest interest rates along with tax benefits then you can invest in Sukanya Samriddhi Yojana.
If you are looking for better returns than Sukanya Samriddhi Yojana then you should look at investing in equity mutual funds which historically have given better returns.
When does Sukanya Samriddhi Yojana Mature?
The Sukanya Samriddhi Yojna account shall mature on completion of 21 years from the date of opening of the account or on the marriage of the Account holder whichever is earlier.
One withdrawal shall be allowed upon attaining the age of 18 years of the account holder to meet education expenses up to 50 % of the balance at the credit of the preceding financial year.
Is Investment in Sukanya Samriddhi Yojana Better than Mutual Funds?
Sukanya Samriddhi Yojana gives 7.6% interest rates as of January 2023. The historic returns of equity mutual funds over 20 years are more than 10% CAGR. So if you are not willing to take any risk of market fluctuation and want safe steady returns then you Sukanya Samriddhi Yojana is a better investment than mutual funds.
But if you are willing to take a bit of risk then investing in an equity mutual fund may give you far better returns than Sukanya Samriddhi Yojana.
Consider reading: Top 10 Best Mutual Funds to Start SIP
How much should I Invest in Sukanya Samriddhi Yojana?
Although Sukanya Samriddhi Yojana is an excellent choice for safe investments you shouldn’t all of your savings for your girl child in Sukanya Samriddhi Yojana; Equity mutual funds have given far better returns over the long term as compared to Sukanya Samriddhi Yojana. You should look to diversify your investments and look for instruments like equity mutual funds, Stocks, and Hybrid funds which can give you excellent returns compared to Sukanya Samriddhi Yojana over the long term.
Sukanya Samriddhi Yojana / SSY FAQs
How to Open Sukanya Samriddhi Yojana Account?
Sukanya Samriddhi Yojana can be opened in any post office or most public/private sector banks.
Can I Open Sukanya Samriddhi Yojana Online?
No. You can not open a Sukanya Samriddhi Yojana account online as of January 2023. You need to either visit a bank or post office to open the Sukanya Samriddhi Yojna account.
What are the Documents Required to open a Sukanya Samriddhi Yojana Account?
You will need the below documents to open the Sukanya Samriddhi Yojana account.
1. Sukanya Samriddhi Yojna Account Opening Form
2. Birth Certificate of girl child (mandatory)
3. Identity proof (as per RBI KYC guidelines)
4. Residence proof (as per RBI KYC guidelines)What is the Latest Interest Rate for Sukanya Samriddhi Yojana in 2023?
As of April 2023, the rate of interest for Sukanya Samriddhi Yojana is 8.0%.
What are the Disadvantages of Sukanya Samriddhi Yojana?
The biggest disadvantage of the Sukanya Samriddhi Yojana is the lock-in period. You can not withdraw the money before the girl child turns 18.
What is the Maximum Amount that can be Invested in Sukanya Samriddhi Yojana?
You can invest a maximum of 150000 in a financial year in a Sukanya Samriddhi Yojana account.
Does Sukanya Samriddhi Yojana Qualify for Tax Savings as part of 80C?
Yes, investments in Sukanya Samriddhi Yojana account will qualify for tax benefits under section 80C.
What is the Age Limit for Investing in Sukanya Samriddhi Yojana?
10 years. The girl should be less than 10 years old to be eligible to qualify for Sukanya Samriddhi Yojana account.
Is Sukanya Samriddhi better than PPF?
Sukanya Samriddhi account fetches slightly higher interest than PPF in January 2023. Although both of them have a longer lock-in period, PPF matures in 15 years which is slightly earlier than the Sukanya Samriddhi account which is locked for at-least 18 years before you can make a partial withdrawal.
Is Sukanya Samriddhi Maturity Tax Free?
Yes. The maturity amount of Sukanya Samriddhi account is exempted from tax.
Can both parents claim the Tax Benefits of Sukanya Samriddhi Yojana?
No. Only one parent can claim tax benefits of investment in the Sukanya Samriddhi Yojana.
How many Sukanya Samriddhi Yojana Accounts can be opened?
Only one. You can open only one Sukanya Samriddhi Yojana account for a girl child.