The Sukanya Samriddhi Yojana (SSA) is a government-backed savings scheme in India specifically designed to promote the welfare and financial security of the girl child.
Launched under the “Beti Bachao, Beti Padhao” campaign, this scheme offers a high-interest rate and significant tax benefits, making it an ideal long-term investment option for parents.
Current Interest Rate and Tax Benefits
As of 2020-2021, the Sukanya Samriddhi Account offers an attractive interest rate of 7.6% annually.
The government reviews this interest rate quarterly, and it is generally higher than those offered by other fixed deposit schemes in India.
Notably, the interest earned on SSA deposits is compounded annually and is tax-free under Section 80C of the Income Tax Act. Additionally, deposits made into the SSA account qualify for a tax deduction of up to Rs. 1.5 lakh.
Eligibility and Account Details
Any parent or legal guardian can open the SSA for a girl child under the age of 10. A minimum deposit of Rs. 250 is required to open the account, and there is no upper limit on deposits.
Contributions can be made until the girl child reaches the age of 18. The account matures 21 years from the date of opening, and upon maturity, the balance will continue to earn interest if not withdrawn.
Maturity Value
| Monthly Deposit(In Rupees) | Yearly Contribution(In Rupees) | Total Contribution For 14 Years(In Rupees) | Maturity Value After 21 Year(In Rupees) |
|---|---|---|---|
| 1000 | 12X1000 = 12000/- | 168000 | 607128 |
| 2500 | 12X2500 = 30000/- | 420000 | 1517820 |
| 5000 | 12X5000 = 60000/- | 840000 | 3035640 |
| 7500 | 12X7500 = 90000/- | 1260000 | 4553460 |
| 10000 | 12X10000 = 120000/- | 1680000 | 6071280 |
| 12500 | 12X12500 = 150000/- | 2100000 | 7589103 |
Interest Rate on SSA (Sukanya Samriddhi Yojana) :
For the coming financial year 2015-16, the government will pay 9.2 percent interest on the Sukanya Samriddhi scheme(this interest rate was recently declared), higher than the 8.7 percent announced for PPF accounts.
The government declares the interest rate of small savings schemes like the Sukanya Samriddhi scheme and PPF every year. In this Financial Year 2014-2015, the Sukanya Samriddhi scheme earned 9.1 percent, compared to 8.7 percent for the PPF.
Sukanya Samriddhi Account Interest Rate
| Financial Year | Date Range | Interest Rate | Minimum Investment | Maximum Investment |
|---|---|---|---|---|
| 2014-15 | 1 April 2014 to 31 March 2015 | 9.1 % | 1,000 | 1,50,000 |
| 2015-16 | 1 April 2015 to 31 March 2016 | 9.2 % | 1,000 | 1,50,000 |
| 2016-17 | 1 April 2016 to 30 Sep 2016 | 8.6 % | 1,000 | 1,50,000 |
| 2016-17 | 1 Oct 2016 to 31 Mar 2017 | 8.5 % | 1,000 | 1,50,000 |
| 2017-18 | 1 April 2017 to 30 June 2017 | 8.4 % | 1,000 | 1,50,000 |
| 2017-18 | 1 July 2017 to 31 December 2017 | 8.3 % | 1,000 | 1,50,000 |
| 2017-18 | 1 January 2018 to 31 March 2018 | 8.1 % | 1,000 | 1,50,000 |
| 2018-19 | 1 April 2018 to 30 September 2018 | 8.1 % | 250 | 1,50,000 |
| 2018-19 | 1 October 2018 to 31 March 2019 | 8.5 % | 250 | 1,50,000 |
| 2019-20 | 1 April 2019 to 30 June 2019 | 8.5 % | 250 | 1,50,000 |
| 2019-20 | 1 July 2019 to 31 March 2020 | 8.4 % | 250 | 1,50,000 |
| 2020-21 | 1 April 2020 to 31 December 2020 | 7.6 % | 250 | 1,50,000 |
Withdrawal and Maturity Options
Parents can withdraw up to 50% of the balance for the girl child’s higher education or marriage once she turns 18.
Full withdrawal is allowed when the girl child reaches 21. In the event of premature closure due to marriage after the age of 18, the account holder can withdraw the entire balance.
Opening and Operating the Account
The account can be opened at any post office or authorized bank branch with the necessary KYC documents and the girl’s birth certificate.
Once the girl child turns 10, she can operate the account herself. For 2024, a one-year grace period has been provided, allowing accounts to be opened for girls born on or after December 2, 2003.
The Sukanya Samriddhi Yojana is one of the best savings schemes for securing a girl child’s future. With a competitive interest rate of 7.6% and considerable tax benefits, it is an excellent option for parents looking to invest in their daughter’s education and marriage.
This scheme ensures financial security and aligns with the government’s mission to empower women and support the welfare of the girl child.