Saving early for your girl child’s future, be it her higher education or marriage – is a smart goal. The Sukanya Samriddhi Yojana (SSY) is a government-backed scheme in India designed for precisely this. It offers a high interest rate, tax advantages and a long time-horizon suited for a girl’s future. Here’s a simple guide, no finance jargon - covering who can join, what interest you get, tax perks, and what you must check.

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What is the Sukanya Samriddhi Yojana (SSY)

SSY is a long-term savings scheme launched in 2015 under the “Beti Bachao-Beti Padhao” campaign.
It allows a guardian (parent or legal guardian) to open an account in the name of a girl child (resident Indian) and build a corpus over years. The scheme is fully backed by the Government of India, which means very low risk of losing principal.

Eligibility – Who can open & what are the rules

Here’s what you need to know:

The account must be opened in the name of a girl child who is a resident Indian.
A guardian (parent or legal guardian) opens and operates the account until the girl attains the age of 18 years.
Maximum two accounts per family are permitted (one for each girl child). Exception in case of twins/triplets in first birth.
You must deposit at least ₹250 in a financial year to keep the account active. Maximum deposit allowed is ₹1.5 lakh per year.
The account matures after 21 years from opening or when the girl gets married after age 18 (in certain conditions) though the primary deposit period is 15 years.

Interest Rate – What return you earn

The current interest rate is 8.2% per annum compounded yearly (for Oct-Dec 2025 quarter) for SSY.
Interest is calculated on the lowest balance between the end of the month and the 5th of the following month.
Because the scheme runs for many years, the benefit of compounding helps build a larger corpus despite modest annual contributions. (For example, one calculator shows investing maximum yearly deposit may yield over ₹70 lakh in 21 years).

Tax Benefits – Why SSY is tax-smart

SSY enjoys favourable tax treatment, making it an attractive long-term savings option:

Deposits qualify for deduction under Section 80C of the Income Tax Act, up to ₹1.5 lakh per year (subject to overall 80C limit) in many cases.
Interest earned in the account is tax-free.
The maturity proceeds (principal + interest) are also exempt from tax – making the scheme EEE (Exempt-Exempt-Exempt).

Key Features & Benefits

Minimum deposit very low (₹250) makes it accessible for many families.
Government-backed safety ensures your capital isn’t at high risk.
Long horizon (15 years deposit period, 21 years maturity) aligns with girl child’s higher education/marriage needs.
Flexible, you can deposit up to ₹1.5 lakh per year (depending on your capacity).
Account is transferable across post offices/banks if you move; usually easier than many other schemes.

Things to Keep in Mind / Conditions

If you stop depositing the minimum amount in any year, the account becomes ‘in default’. You’ll have to pay penalty (₹50 per year) + minimum deposit to regularise.
Withdrawals before maturity are restricted: you can partially withdraw (up to 50%) only after the girl turns 18 years (and passed class 10) for higher education or marriage.
Excess deposits above the ₹1.5 lakh cap in a financial year may not earn interest (or may be refunded).
The interest rate is reviewed periodically by the government, it might change in future.

Summary

If you are looking for a safe, long-term savings plan specifically for a girl child’s future, SSY stands out. With eligibility tailored for girl child, high interest (around 8.2 %), and full tax exemption, it is ideal for planning ahead. The scheme demands consistent savings over years, but the benefit is a substantial tax-free corpus when your daughter needs funds for education or marriage.

Frequently Asked Questions (FAQs)

Who can open an SSY account?

A parent or legal guardian can open an account in the name of a girl child who is a resident of India and under 10 years old.

What is the minimum and maximum deposit per year?

Minimum is ₹250 per financial year; maximum is ₹1.5 lakh per year.

What is the interest rate for SSY currently?

The rate is 8.2% per annum for the Oct-Dec 2025 quarter, compounded annually.

What tax benefits does SSY offer?

Deposits qualify under Section 80C (up to ₹1.5 lakh); interest and maturity amount are both tax-free (EEE status).

For how many years must I deposit into SSY?

Deposits are required for 15 years from account opening date. The account matures in 21 years from opening.

Can I withdraw the money before maturity?

Yes, but only partially (up to 50% of balance) after the girl turns 18 (or passed class 10) for education or marriage. Full withdrawal is at maturity or in special cases (death of holder).

How many SSY accounts can a family have?

Generally up to two accounts per family (one for each girl child). Exception if twins or triplets in the first birth.

What happens if I don’t deposit the minimum amount in a year?

The account becomes ‘in default’. You’ll need to deposit the minimum amount plus penalty (₹50 per year) to reactivate.

Is the investment under SSY safe?

Yes, it’s fully backed by the Government of India, hence very low risk of capital loss.

What happens if the girl child moves abroad or becomes non-resident?

If the account holder becomes a non-resident Indian (NRI), the account may stop earning the notified interest rate; you may have to close or transfer. (General small-savings rule)

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