Sukanya Samriddhi Yojana (SSY) – A detailed Guide for Parents for their Girl Child’s Future
Introduction
Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme in India, specifically designed for the benefit of the girl child. It is part of the ‘Beti Bachao Beti Padhao’ campaign, launched by the Hon’ble Prime Minister on 22nd January 2015.
Key Features of Sukanya Samriddhi Yojana (SSY)
- Objective: The scheme aims to ensure a bright future for girl children in India by facilitating their education and marriage expenses.
- Eligibility: It is exclusively for the girl child and can be opened by a parent or legal guardian for a girl child below the age of 10 years. A family can open up to two SSY accounts.
- Account Opening Venues: SSY accounts can be opened at Post Offices and authorized branches of Public Sector Banks, along with selected Private Sector Banks including HDFC Bank, Axis Bank, and ICICI Bank.
Financial Aspects
- Minimum and Maximum Investment: The minimum annual contribution is ₹250, while the maximum is ₹1,50,000.
- Maturity Period: The account matures in 21 years from the date of opening.
- Interest Rate: For the period from 01.04.2023 to 30.06.2023, the scheme offers an interest rate of 8.0%.
- Tax Benefits: The principal amount, interest earned, and maturity benefits are tax-exempt under section 80C, up to ₹1,50,000.
Impact and Reach of Sukanya Samriddhi Yojana
- Since its inception, around 2.73 crore SSY accounts have been opened, with nearly ₹1.19 Lakh Crore in deposits, reflecting the scheme’s widespread acceptance and success.
The Sukanya Samriddhi Yojana is a significant step towards empowering the girl child in India by providing financial support for their education and marriage, thereby promoting gender equality and education. For further information or specific queries, please feel free to ask to us by filling the contact form to your right side.
Additional Details on Sukanya Samriddhi Yojana (SSY) and Investment Calculations
Investment Calculations for SSY
If you invest ₹1.5 lakh per year in the Sukanya Samriddhi Yojana scheme, here’s an estimate of the returns you can expect, considering the current interest rate of 7.6%:
- For an Annual Investment of ₹1.5 Lakh: By investing this amount yearly, starting from 2023, you can accumulate approximately ₹63,65,155 by 2044 in the name of your girl child.
Investment Scenarios at Different Amounts
- Investing ₹10,000/Year: You would accumulate around ₹4,24,344 by 2044.
- Investing ₹20,000/Year: This would result in approximately ₹8,48,687 by 2044.
- Investing ₹50,000/Year: Expected accumulation would be about ₹21,21,718 by 2044.
- Investing ₹75,000/Year: You would gather around ₹31,82,577 by 2044.
- Investing ₹1 Lakh/Year: This would result in approximately ₹42,43,436 by 2044.
Key Points to Note
- Interest Rate Variability: The SSY interest rate is subject to periodic revision by the Government, which means it could increase or decrease in the future. Therefore, actual returns might vary.
- Interest Rate Revision Expectations: It’s anticipated that the SSY interest rate may be revised upwards in future cycles, enhancing the potential returns.
Scheme Overview
- Tax Benefits: The investments made under SSY are eligible for deduction under Section 80C of the Income Tax Act.
- Purpose: Sukanya Samriddhi Yojana is tailored to accumulate a significant corpus for the girl child’s future, particularly for education and marriage expenses.
The Sukanya Samriddhi Yojana provides a secure and beneficial investment opportunity for the girl child’s future, with attractive interest rates and tax benefits. The scheme’s flexibility allows for varying amounts of investment, catering to different financial capabilities.
Detailed Information on Sukanya Samriddhi Yojana (SSY) for ₹1.5 Lakh Annual Investment
Key Features of SSY
- Launched: Part of the ‘Beti Bachao Beti Padhao’ campaign, launched on 22 January 2015.
- Objective: To support the girl child’s education and marriage expenses.
- Eligibility: For girl children up to the age of 10 years. Only one account per girl child and a maximum of two accounts per family.
Financial Aspects
- Investment Value: Minimum of ₹250 and a maximum of ₹1.5 lakh per annum.
- Current Yearly Interest Rate: 8% per annum (as of the 2nd quarter of FY 2023-2024).
- Maturity Duration: 21 years from the date of investment.
Account Operation and Withdrawal
- Account Operation: The guardian operates the account until the girl child reaches 18 years, after which it is operated by the girl child.
- Withdrawals: Partial withdrawals are allowed for educational purposes when the girl child reaches 18 or completes the 10th standard. Withdrawals are limited to 50% of the account balance at the end of the previous financial year.
Tax Benefits of Sukanya Samriddhi Yojana (SSY)
- Investment Deduction: Eligible for deductions under Section 80C, up to ₹1.5 lakh.
- Tax-Free Returns: Both interest and maturity amounts are exempt from income tax.
Interest Calculation and Maturity
- Interest Calculation: The interest for SSY is calculated on the lowest balance in the account between the 5th and the end of each month. It is credited annually.
- Maturity: The account matures after 21 years, or upon the girl child’s marriage after reaching 18 years.
Investment of ₹1.5 Lakh/Year
- Returns: Investing ₹1.5 lakh per year from 2023 can accumulate approximately ₹63,65,155 by 2044.
- Interest Rate Variability: The actual returns may vary as SSY interest rates are revised periodically.
Account Transfer and Closure
- Transfer: The SSY account can be transferred anywhere in India from/to post offices and banks, free of cost, upon furnishing proof of a change of residence.
- Closure: The account matures after 21 years, or upon the girl child’s marriage after she turns 18. Premature closure is allowed under specific conditions like marriage, the death of the guardian, or life-threatening diseases.
The Sukanya Samriddhi Yojana offers a secure and high-return savings option for the girl child’s future, with benefits like attractive interest rates, tax exemption, and flexible withdrawal options. It’s a significant initiative under the government’s campaign to promote the welfare and empowerment of the girl child in India. For more detailed calculations or specific queries, feel free to ask.
Returns Chart for Sukanya Samriddhi Yojana
Here is the estimated return chart for an annual investment of ₹1.5 lakh in the Sukanya Samriddhi Yojana for a newborn girl child, assuming a constant interest rate of 8%:
| Year | Total Balance (₹) |
| 1 | 162,000 |
| 2 | 336,960 |
| 3 | 525,916.8 |
| 4 | 729,990.14 |
| 5 | 950,389.36 |
| 6 | 1,188,420.50 |
| 7 | 1,445,494.14 |
| 8 | 1,723,133.68 |
| 9 | 2,022,984.37 |
| 10 | 2,346,823.12 |
| 11 | 2,696,568.97 |
| 12 | 3,074,294.49 |
| 13 | 3,482,238.05 |
| 14 | 3,922,817.09 |
| 15 | 4,398,642.46 |
| 16 | 4,750,533.85 |
| 17 | 5,130,576.56 |
| 18 | 5,541,022.69 |
| 19 | 5,984,304.50 |
| 20 | 6,463,048.86 |
| 21 | 6,980,092.77 |
- Investment Period: For the first 15 years, an annual investment of ₹1.5 lakh is made.
- Maturity: The account matures after 21 years, and no further investments are made after 15 years. The balance continues to grow with the accrued interest.
- Total Maturity Amount: At the end of 21 years, the total estimated balance would be approximately ₹6,980,092.77.
This chart illustrates the power of compounding interest and how it contributes significantly to the growth of the investment over time in the Sukanya Samriddhi Yojana.
Comparison Between Sukanya Samriddhi Yojana (SSY) and Public Provident Fund (PPF)
Key Differences
- Interest Rate:
- SSY: 8.00%
- PPF: 7.10%
- Eligible Age to Enter:
- SSY: From birth up to the age of 10 years.
- PPF: No specific age limit, generally 18 years for independent accounts.
- Minimum and Maximum Deposit:
- SSY: ₹250 minimum, ₹1,50,000 maximum per annum.
- PPF: ₹500 minimum, ₹1,50,000 maximum per annum.
- Tenure:
- SSY: 21 years.
- PPF: 15 years.
- Premature Withdrawal:
- SSY: After the age of 18, for the girl child’s higher education or marriage.
- PPF: After 5 financial years, under certain conditions.
- Tax Benefits:
- Both SSY and PPF investments qualify for a deduction under Section 80C, up to ₹1,50,000.
- Nomination Facility:
- SSY: Not available.
- PPF: Available.
- Loan Facility:
- SSY: Not available.
- PPF: Available.
In-Depth Analysis
- Account Opening:
- SSY can be opened only for a girl child by her parents or legal guardians.
- PPF can be opened by any Indian resident, including for minors.
- Deposit Limit:
- Both schemes have similar annual deposit limits.
- Interest Rate Provided:
- SSY offers a slightly higher interest rate compared to PPF.
- Tax Benefits:
- Both provide tax benefits on the deposit, accrued interest, and maturity amounts.
- Withdrawal:
- SSY allows partial withdrawals after the girl child turns 18.
- PPF allows partial withdrawals after a specific duration.
- Account Maturity:
- SSY matures when the girl child reaches the age of 21.
- PPF has a tenure of 15 years but can be extended.
On a Closing Note
Both SSY and PPF are excellent investment options backed by the Government of India, offering safe and substantial financial growth with minimal risk. The choice between the two should be based on the investor’s specific needs, with SSY being more beneficial for saving for a girl child’s future, while PPF offers more flexibility for general savings and retirement planning.
For additional information or specific details, feel free to ask by filling our contact form.
