Sukanya Samriddhi scheme: Key features of saving plan for girl child

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Sukanya Samriddhi Yojana (scheme) (SSY) is a government small saving scheme encouraging parents to invest for the girl child. Launched to support the government’s Beti Bachao Beti Padhao initiative, SSY offers attractive tax benefits and incentives to help secure the girl child’s finances. Here are key features of the Sukanya Samridhi Yojana.

Parents can open an SSY account for the girl child until she is 10 years of age.

A parent can open only one SSY account for a girl child.

You can deposit a minimum of Rs 250 and a maximum of Rs 1,50,000 in a financial year. If the minimum amount is not deposited, you have to pay a fine of Rs 50.

Only one account can be opened in the name of a girl child.

Amounts invested in SSY can be deducted from taxable income up to Rs 150,000 per year under Section 80C of the Income Tax Act.

Interest earned and the amount on maturity are tax free.

Withdrawals from a SSY account are permitted for funding the higher education expenses of a girl child. A beneficiary can withdraw 50 per cent of the corpus at the age of 18 to meet the costs of higher education.

A SSY account matures on completion of a period of 21 years from the date of its opening.

Once a beneficiary turns 18, they gain control over the SSY account.

The account can be prematurely closed in case of a beneficiary when she turns 18.

The account can be transferred anywhere in India from one post office/ bank to another.

SSY offers an 8.2 per cent interest rate slightly higher than that of the 7.1 per cent of the Public Provident Fund. However, it’s essential to note that these rates are subject to change periodically.

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Pooja Gupta

CA Pooja Gupta (CA, ISA, having 15 years of experience. Educator and Digital Creator

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CA Pooja Gupta (CA, ISA, having 15 years of experience. Educator and Digital Creator

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