The Sukanya Samriddhi Yojana (SSY), a small deposit savings scheme introduced by the Indian government in 2015, continues to offer attractive returns to parents who invest in their daughters’ future. As part of the Beti Bachao Beti Padhao campaign, ssy It aims to support the educational and financial needs of girls across India.
For the current quarter, from July 1 to September 30, 2024, SSY accounts offer an interest rate of 8.2 percent per annum, compounded annually. This rate, revised quarterly, remains one of the highest among small savings schemes in the country.
The SSY account maturity period is 21 years from the date of account opening or marriage after turning 18. However, contributions can only be made during the first 15 years. Thereafter, the SSY account will continue to earn interest until maturity.
For example, if the parents of a 5-year-old girl invest ₹1.2 lakh annually for 15 years at the current interest rate, could potentially accumulate to around ₹55.61 lakh on maturity, after 21 years of account opening. This sum would include your total investment of ₹17.93 lakh plus an estimate ₹37.68 lakh in interest earned.
The SSY scheme also offers significant tax benefits. An official statement from the Ministry of Finance explains: “Sukanya Samriddhi Yojana enjoy the ‘Triple E’ (Exempt-Exempt-Exempt) tax benefit available on investments made in this. Investments made in the SSY scheme are eligible for deductions under Section 80C, subject to a maximum limit of ₹1.5 lakh. The interest accruing in this account, which is compounded annually, is also exempt from tax under Section 10 of the Income tax law. Income received upon maturity/withdrawal is also exempt from income tax.”
One of the key features of SSY is its long-term nature. Accounts mature 21 years after opening or, in the case of marriage, 18 years. This extended investment period creates a substantial fund for the child’s future needs.
While the scheme offers security and high returns, it is important to note that it comes with certain restrictions. Partial withdrawals are allowed under specific circumstances, but depositors cannot borrow against SSY deposits. However, the scheme’s government backing provides investors with assurances about the safety of their funds.
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