Sukanya Samriddhi Yojana

What is Sukanya Samriddhi Yojana (SSY)?

  • This government scheme aims to securing a bright future for the girl child in India. This is done by facilitating the parents of a girl child in building a fund for the proper education and marriage expenses of their child. The beneficiary of this scheme can be any girl child who is a resident Indian, from the time of opening the account and till the time of maturity or closure.
  • Parents or legal guardian of a girl child who has not attained the age of 10 years can easily open the account. The guardian is allowed to deposit the amount and operate the account. Do note that the account has to be mandatorily operated by the girl child after she attains 18 years age. There will be only one account per girl child. Also, accounts can be opened for a maximum of two girl children in one family, including those adopted.
  • The SSY account can be opened in any post office or authorized branch of bank. A minimum of ₹ 250 and a maximum of ₹ 1.5 lakh can be invested every financial year. The investment tenure is up to 15 years. You should remember that no interest will be payable after the completion of tenure of the SSY, i.e. 21 years from account opening.
  • Premature closure of SSY account is allowed. The reasons for premature closure include if the child either becomes a non-resident or a non-citizen of India. Withdrawal from SSY account is allowed for purposes of higher education if the girl child has either attained 18 years, or she has completed 10th standard of school. The withdrawal is allowed for meeting the actual fee or other charges required at the time of admission. Withdrawal has a maximum limit of 50% of the balance in the SSY at the end of the previous financial year.
  • The SSY has been provided with certain tax benefits like investments made in the SSY scheme are eligible for deductions under Section 80C, interest that accrues against this account is exempt from tax, and the proceeds received upon maturity/withdrawal are exempt from income tax.

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