Sukanya Samriddhi Yojana - Details, Benefits, Age Limit

Sukanya Samriddhi Yojana – Details, Benefits, Age Limit

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Sukanya Samriddhi Yojana ( सुकन्या समृद्धि योजना ) is a government-backed small savings scheme for the benefit of a girl child. It is a part of the Beti Bachao, Beti Padhao Yojana and can be opened by the parents of a girl child below the age of 10. SSY accounts can be opened at designated banks or post offices. The Sukanya Samriddhi Yojana Account has a tenure of 21 years or until the girl child marries after the age of 18. The SSY scheme comes with a higher interest rate along with several tax benefits. Read the complete article to know more about Sukanya Samriddhi Yojana details.

Sukanya Samriddhi Yojana Highlights

Interest Rates	8.2% per annum (Q4 FY 2024-25)
Investment Period	Till 15 years from the date of account opening
Maturity Period (Sukanya Samriddhi Yojana Age Limit)	21 years or until girl child marries after the age of 18
Minimum Deposit Amount	Rs. 250
Maximum Deposit Amount	Rs. 1.5 Lakh in a financial year
Eligibility	Parents or the legal guardian of a girl child below the age of 10 are eligible to open the SSY in the girl child’s name
Income Tax Rebate	Eligible for rebate under section 80C of the Income Tax Act, 1961 (Maximum cap of Rs. 1.5 Lakh in a year)

Eligibility Criteria for Sukanya Samriddhi Yojana

Here are the Sukanya Samriddhi Yojana details about the eligibility criteria-

The account can be opened by a parent or legal guardian of the girl’s child
The girl child must be below the age of 10 years
Only one account is allowed for a girl child
A family can open only 2 SSY scheme accounts

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Benefits of Investing in Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana introduced as part of the Beti Bachao, Beti Padhao Yojana initiative, provides investors with a range of benefits. Some of the key Sukanya Samriddhi Yojana benefits are as follows:

High Interest Rate- SSY offers a higher fixed rate of return (currently 8.2% per annum for Q1 FY 2024-25) as compared to other government-backed tax saving schemes such as PPF.

Guaranteed Returns- Since SSY is a government-backed scheme, it provides guaranteed returns.

Tax Benefit- SSY provides tax deduction benefits under Section 80C up to Rs. 1.5 Lakh annually.

Flexible Investment- One can make a minimum deposit of Rs. 250 in a year and a maximum deposit of Rs. 1.5 Lakh in a year. This ensures people with different financial standing can invest in the SSY scheme.

Benefit of Compounding- Sukanya Samriddhi Yojana (SSY) is a great long-term investment scheme as it provides the benefit of annual compounding. So, even small investments will give higher returns over the long term.

Convenient Transfer- SSY account can be freely transferred from one part of the country to another (bank/post office) in case of transfer of parent/guardian operating the Sukanya Samriddhi Account.

Sukanya Samriddhi Yojana Advantages

High Interest Rate: SSY accounts earn a fixed rate of interest, currently at 7.6% per annum.
Tax-Free: Interest earned and the maturity amount are tax-free.
Long-Term Savings: Encourages long-term saving and financial planning for the girl child’s future.
Government-Backed Security: Adds an element of security to the investment.
Promotes Welfare of Girls: Part of a campaign to promote the welfare of girls in India.

Sukanya Samriddhi Yojana Disadvantages

Limited Flexibility: Premature withdrawal is restricted, and the scheme is specifically for girls.
Limited Investment Options: Only allows investment in a fixed deposit account.
Geographical Limitation: Only available to residents of India.

Sukanya Samriddhi Yojana Premature Withdrawal

Allowed in two cases: the account holder’s demise or in cases of undue hardship, subject to stringent scrutiny.

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Sukanya Samriddhi Yojana- Interest Rates

The rate of interest that you will receive in your Sukanya Samriddhi Yojana account currently stands at 7.6% p.a. This interest rate is applicable from 1st April 2020.This is lower than the previous rate that was 8.4%.

However, if you have deposited between 12th December 2019 to 31st March 2020 then you will earn 8.4% p.a.

Interest is payable to you yearly
Interest is credited at the end of every financial year only
Interest rate is decided by the government and change every quarter
No interest will be provided if the girl becomes an NRI

Here is a table that shows the interest rates offered by the SSY scheme since its inception:

YEAR	RATE
April 2020 – Present	7.6% p.a.
1 January 2019 – 31 March 2019	8.5% p.a.
1 October 2018 – 31 December 2018	8.5% p.a.
1 July 2018 – 30 September 2018	8.1% p.a.
1 April 2018 – 30 June 2018	8.1% p.a.
1 January 2018 – 31 March 2018	8.1% p.a.
1 July 2017 – 31 December 2017	8.3% p.a.
1 October 2016 – 31 December 2016	8.5% p.a.
1 July 2016 – 30 September 2016	8.6% p.a.
1 April 2016 – 30 June 2016	8.6% p.a.
1 April 2015 – March 31 2016	9.2% p.a.
3 December 2014 – March 31 2015	9.1% p.a.

Sukanya Samriddhi Yojana age limit

Guardians can open an account in the name of a girl child below the age of 10 years. The account can be opened for a maximum of two girls in the family. In case of twins/triplets, more than two accounts can be opened. The account can be operated by the guardian until the girl reaches the age of 18 years.

Banks Offering Sukanya Samriddhi Yojana

The following is a list of public and private sector banks which are currently offering Sukanya Samriddhi Accounts for all the eligible individuals-

1. HDFC Bank	2. Axis Bank	3. Punjab National Bank
4. Canara Bank	5. Union Bank of India	6. ICICI Bank
7. Central Bank of India	8. IDBI Bank	9. Canara Bank
10. Indian Bank	11. State Bank of India	12. Bank of Maharashtra
13. Punjab & Sind Bank	14. Indian Overseas Bank	15. UCO Bank
16. Bank of India	17. Bank of Baroda

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An important step in the direction of empowering girls in India is the Sukanya Samriddhi Yojana. It combines the advantages of long-term savings emphasis, tax efficiency, and appealing interest rates. Many parents find it to be an enticing alternative, despite its limits with regard to flexibility and investment possibilities. These advantages stem from its capacity to help girls develop financial security.