Sukanya Samrudhi Yojana. (SSY) is a government-backed small savings scheme that provides tax benefits to girls. The Sukanya Samrudhi Yojana helps families raise funds for their daughter’s higher education and wedding expenses.
Parents of a girl child can open an SSY account from the birth of their daughter till the age of 10 years. A regular investment in Sukanya Samrudhi Yojana, especially by making maximum annual deposits, can yield several lakhs over time. Maturity of SSY Account.
Let’s have a look at the top facts about Sukanya Samrudhi Yojana interest rate, deposit requirements, maturity details and tax benefits.
Sukanya Samrudhi Yojana Interest Rate Details
The scheme currently provides annual compounding with an interest rate of 8.2% per annum. The Ministry of Finance reviews and adjusts these rates quarterly. Interest calculation takes into account the lowest balance maintained between the sixth and last day of each calendar month. The interest amount is credited to the accounts at the end of the financial year.
Sukanya Samrudhi Yojana Deposit Details
An initial deposit of Rs 250 is required to open an account. The annual deposit limit is Rs 1.5 lakh, with contributions accepted in increments of Rs 50. Depositors can make unlimited transactions throughout the financial year.
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Sukanya Samrudhi Yojana Calculator
According to HDFC Bank calculations, an investment of Rs 1.5 lakh per annum at the current interest rate of 8.2% yields Rs 71,82,119/- on maturity. SSY account matures 21 years after opening. This amount includes principal investment of Rs.22,50,000/- and interest of Rs.49,32,119/-.
Sukanya Samrudhi Yojana Account Eligibility
Legal guardians can set up accounts for girls under 10 years of age. Families are generally limited to two accounts, one per female child. Special provisions allow additional accounts for multiple births, such as twins or triplets.
Sukanya Samrudhi Yojana collection period
Account holders can deposit funds for a period of 15 years from the date of opening the Sukanya Samrudhi Yojana account. If the minimum deposit requirement is not met in a financial year, the account becomes inactive. To restore the active status of the account, a penalty of Rs.250 plus additional Rs.50 has to be paid for each year of default.
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Tax Benefits of Sukanya Samrudhi Yojana
Under Section 80C of the Income Tax Act, deposits in the Sukanya Samrudhi Yojana account are eligible for tax deductions up to Rs 1.5 lakh per annum. The scheme offers full tax exemption on interest income, making it a tax-efficient investment option.
Sukanya Samrudhi Yojana Account Operation
Until the girl reaches the age of 18, the guardian controls the Sukanya Samrudhi Yojana account. After that, control of the account is transferred to the girl, allowing her to manage it independently.
Withdrawal provisions of Sukanya Samrudhi Yojana
The account holder can access the funds after turning 18 or completing 10th. The withdrawal limit is set at 50% of the closing balance of the previous financial year. This amount can be withdrawn either as a lump sum or in annual installments spread over a period of five years.