Sukanya Samriddhi Scheme

Hi all,

This time I would like to talk on the scheme which the government initiated. “Beti Bachao, Beti Padhao” is one of the important initiatives of the government. How Parents should be responsible and girl child can become independent is something unique which the government implemented through “Sukanya Samriddhi Scheme”.

Who Can Invest?

Indian resident parents of a girl child whose age is below 10 years can invest and everyone should be a resident Indian.

Tenure of Sukanya Samriddhi Yojana Account:

Sukanya Samriddhi Yojana has a tenure equal to the time the girl child is 21 years of age or upon her marriage attaining the age of majority (18 years). However, contributions only need to be made for 15 years. Thereafter the account continues to earn interest until maturity even if no deposits are made into it.

Minimum and Maximum Amount for Sukanya Samruddhi Yojana Account:

The minimum annual contribution to the Sukanya Samriddhi Account is Rs.250 and the maximum of Rs.1.50 lakh in a financial year. You have to invest at least the minimum amount every year for up to 15 years from the date of account opening. Thereafter the account will continue to earn interest till maturity. If the investment is not maintained there will be a penalty of Rs. 50/- per year.


The amount can be withdrawn once the girl child attains the age of 18 years. However, you can withdraw only 50% if it is for higher education and 100% in case of marriage. Otherwise, the full amount can be withdrawn only after attaining the age of 21 years. Apart from the above premature withdrawal is allowed if the status changes to NRI, if the parents cannot afford to invest (minimum 5 years has to be completed) or death of the girl child.

Tax Rules of Sukanya Samriddhi Yojana:

From a taxation perspective, SSY investments are designated as an EEE (Exempt, Exempt, Exempt) investment. This means that the principal invested, the interest earned as well as the maturity amount are tax-free. Under existing taxation rules of Sukanya Samriddhi Yojana, the tax deduction benefit on the principal amount invested is up to Rs 1.5 lakh per annum under Section 80C of the Income Tax Act, 1961.

1.Opening an Account:

It can be open in post office or any commercial bank authorized by the government.


The calculation is done on the basis of last 10 years govt yield return + 0.75%. The interest is calculated monthly however the compounding effect is calculated annually.

3.The calculation:

1.50 lacs X 15 years= 22, 50,000/-

On the approximate earning interest of 8.50%= 75,00,000/-


This is one of the best debt investment instrument where the needs and goals are properly planned. Equity investment is also must, but for someone who is risk avert and don’t want to put the entire amount, this is a planned investment, with less risk and better returns at the end of the tenure.

Sukanya Samriddhi Yojana (SSY) is a small deposit scheme for the girl child launched as a part of the ‘Beti Bachao Beti Padhao’ campaign. It is currently 8.1 per cent and provides an income-tax benefit under section 80 C of the Income Tax Act,1961. Even the returns are tax-free in the scheme. 

A Sukanya Samriddhi Account can be opened any time after the birth of a girl till she turns 10, with a minimum deposit of Rs 250 (Earlier it was Rs 1,000). In subsequent years, a minimum of Rs 250 and a maximum of Rs 1.5 lakh can be deposited during the ongoing financial year.  
The account can be opened in any post office or authorized branches of commercial banks. The account will remain operative for 21 years from the date of its opening or till the marriage of the girl after she turns 18. 
To meet the requirement of her higher education expenses, partial withdrawal of 50 per cent of the balance is allowed after she turns 18. 

The account can be opened by the natural or legal guardian in the name of the girl from her birth till she turns 10. 

A depositor may open and operate only one account in the name of the girl child under these rules. One can’t open two accounts for one girl. The birth certificate of the girl in whose name the account is opened should be submitted by the guardian at the time of the opening of the account in the post office or bank, along with other documents relating to identity. The deposit in the account can be made in cash or by cheque or demand draft and an endorsement on the back of such instrument has to be made and signed by the depositor, indicating the name of the account holder and the account number in which the deposit is to be credited. 

Deposits may also be made through electronic means (e-transfers) in the concerned post office or banks if there is CBS (core banking solutions) availability in them. 

So as we teach girl child about responsibilities, now let us teach them how to handle the money matter also.

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