Sukanya Samriddhi Yojana - Girl Child Savings Scheme

Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme designed exclusively to promote financial security of the girl child. Launched in 2015 under the Beti Bachao, Beti Padhao campaign, it encourages parents and guardians to save for a daughter's education and marriage expenses. Accounts can only be opened for girls under 10 years of age; only one account per girl is permitted. The account is opened at post offices or participating banks by the father, mother, or legal guardian. Annual deposits range from a minimum of Rs. 250 to a maximum of Rs. 1.5 lakhs per financial year; deposits need not be continuous. The scheme offers a fixed interest rate of 7.6% per annum (2024-25), compounded quarterly and credited annually on July 1. The maturity period is 21 years from the date of opening; the entire principal and accrued interest are available at maturity. Partial withdrawal is permitted from the financial year in which the girl turns 18 for higher education or other purposes, up to 50% of the balance of the immediately preceding financial year or the balance at the end of the immediately preceding financial year, whichever is lower. SSY contributions are eligible for deduction under Section 80C of the Income Tax Act (up to Rs. 1.5 lakhs annually combined with other Section 80C instruments). Interest earned and maturity proceeds are completely tax-free. The account can be transferred along with the balance if the girl changes residence. A critical pitfall: SSY accounts are not transferable to the girl herself until maturity; guardianship details remain unchanged throughout the tenure, even if the girl turns 18.