Sukanya Samriddhi Yojana (SSY) – The Sukanya Samriddhi Yojana (SSY) is a special savings plan launched by the Government of India in 2015 under the Beti Bachao, Beti Padhao campaign. It’s designed to help parents or guardians build a fund for a girl child’s education and marriage. With high interest rates, valuable tax perks, and full government backing, SSY stands out as one of the best long-term investment choices you can open at any India Post branch.

Key Features of Sukanya Samriddhi Yojana (SSY)

1. Eligibility:

   • A parent or legal guardian can open an SSY account for a girl child below the age of 10 years.

   • Only resident Indian girls are eligible; Non-resident Indians (NRIs) cannot open an account.

   • A maximum of two SSY accounts can be opened per family (one for each girl child). In the case of twins or triplets, more than two accounts are allowed.

2. Investment Amount:

   • Minimum annual deposit: ₹250.

   • Maximum annual deposit: ₹1.5 lakh.

   • Deposits can be made in multiples of ₹50, up to the annual cap.

   • Deposits must be made for the first 15 years of the account.

3. Tenure:

   • The scheme has a tenure of 21 years from the date of account opening.

   • Deposits are required for the first 15 years; the account continues to earn interest for the remaining 6 years.

4. Interest Rate:

   • As of 2025, the interest rate is 8.2% per annum, compounded annually and credited to the account.

   • The rate is set by the Government of India and reviewed quarterly.

5. Account Opening:

   • SSY accounts can be opened at any post office or authorized commercial bank in India.

   • Required documents include the girl child’s birth certificate, parent/guardian’s identity and address proof (e.g., Aadhaar, PAN), and photographs.

6. Tax Benefits:

   • Contributions to SSY qualify for tax deductions up to ₹1.5 lakh per year under Section 80C of the Income Tax Act.

   • Interest earned and maturity proceeds are tax-exempt, making SSY an EEE (Exempt-Exempt-Exempt) scheme.

7. Withdrawals:

   • Partial withdrawal (up to 50% of the account balance) is allowed after the girl child turns 18, for higher education or marriage expenses.

   • Full withdrawal is permitted upon maturity (21 years) or if the girl child gets married after turning 18.

8. Premature Closure:

   • Premature closure is allowed only in exceptional cases, such as the death of the account holder or extreme compassionate grounds, subject to approval.

   • If the girl child becomes an NRI or loses Indian citizenship, the account can be closed with interest calculated at the Post Office Savings Account rate (4% as of 2025).

9. Nomination:

   • No nomination facility is available, as the account is exclusively for the benefit of the girl child.

10. Transferability:

    • The SSY account can be transferred to any post office or authorized bank across India free of charge.

Benefits of Sukanya Samriddhi Yojana (SSY)

• High Returns: The 8.2% interest rate is among the highest for government-backed savings schemes, with annual compounding.

• Tax Advantages: Contributions, interest, and maturity proceeds are fully tax-exempt, maximizing returns.

• Government Backing: SSY is a low-risk investment with assured returns, backed by the Government of India.

• Long-Term Savings: The 21-year tenure ensures a substantial corpus for the girl child’s future needs.

• Flexibility: Deposits can be made in small, affordable amounts starting at ₹250 annually.

Limitations of Sukanya Samriddhi Yojana (SSY)

• Long Lock-In Period: The 21-year tenure may not suit those seeking shorter-term investments.

• Deposit Cap: The ₹1.5 lakh annual limit may restrict high-income families from saving more.

• No Nomination: The absence of a nomination facility limits flexibility in case of unforeseen circumstances.

• Penalty for Non-Deposit: Failure to deposit the minimum ₹250 annually incurs a penalty of ₹50 per year.

How to Open an Sukanya Samriddhi Yojana (SSY) Account

1. Visit a post office or authorized bank offering SSY accounts.

2. Fill out the SSY application form (available at the post office/bank or online).

3. Submit KYC documents: the girl child’s birth certificate, parent/guardian’s Aadhaar, PAN, address proof, and photographs.

4. Deposit the initial amount (minimum ₹250, maximum ₹1.5 lakh).

5. Receive the SSY passbook upon account activation.

Who Should Invest in Sukanya Samriddhi Yojana (SSY)?

SSY is ideal for:

• Parents or guardians planning for their girl child’s education or marriage.

• Individuals seeking a safe, long-term investment with tax benefits.

• Families looking for a disciplined savings plan with high returns.

• Those who prefer government-backed schemes over market-linked investments.

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Frequently Asked Questions (FAQ) about Sukanya Samriddhi Yojana (SSY)

1. Who can open an SSY account?

   • A parent or legal guardian can open an SSY account for a girl child below 10 years of age. Only resident Indian girls are eligible.

2. What is the interest rate for SSY in 2025?

   • The interest rate is 8.2% per annum, compounded annually.

3. What are the tax benefits of SSY?

   • Contributions up to ₹1.5 lakh annually qualify for tax deductions under Section 80C. Interest earned and maturity proceeds are tax-exempt.

4. What is the minimum and maximum deposit amount?

   • The minimum annual deposit is ₹250, and the maximum is ₹1.5 lakh, in multiples of ₹50.

5. Can I open SSY accounts for more than two daughters?

   • Generally, only two accounts are allowed per family (one per girl child). Exceptions are made for twins or triplets.

6. When can I withdraw money from an SSY account?

   • Partial withdrawal (up to 50% of the balance) is allowed after the girl child turns 18 for education or marriage. Full withdrawal is permitted at maturity (21 years) or after marriage post-18.

7. What happens if I miss the minimum annual deposit?

   • A penalty of ₹50 per year is charged if the minimum ₹250 is not deposited annually.

8. Can the SSY account be transferred?

   • Yes, the account can be transferred to any post office or authorized bank in India free of charge.

9. What happens if the girl child becomes an NRI?

   • If the account holder becomes an NRI, the account can be closed, with interest calculated at the Post Office Savings Account rate (4% as of 2025).

10. Can I close the SSY account prematurely?

    • Premature closure is allowed only in cases like the account holder’s death or extreme compassionate grounds, subject to approval.

Website : https://www.indiapost.gov.in/Financial/pages/content/post-office-saving-schemes.aspx

Also visit : https://postofficefd.com/post-office-savings-account/