Every parent wants to give their daughter the best education, opportunities, and a secure future. But with rising costs, achieving this dream requires smart financial planning. The Sukanya Samriddhi Yojana (SSY), launched by the Government of India, is one of the most effective small savings schemes for this purpose.
The best part? With just ₹104 per day, parents can create a financial cushion of around ₹17.5 lakh or more for their daughter by the time she turns 21.
What is Sukanya Samriddhi Yojana?
Sukanya Samriddhi Yojana is a government-backed scheme under the Beti Bachao, Beti Padhao initiative. It encourages parents to save systematically for their girl child’s future.
An SSY account can be opened anytime from the girl’s birth until she turns 10 years old. Each child can have only one account, and parents can open accounts for up to two daughters. The account matures after 21 years from the date of opening or earlier if the girl gets married after turning 18.
How ₹104 Per Day Becomes ₹17.5 Lakh
Investing ₹104 daily equals ₹3,120 per month or ₹37,440 annually. If parents contribute this amount consistently for 15 years and leave it to grow until maturity, the returns can be substantial.
At the current interest rate of 8.2% per annum (compounded annually), this regular saving builds up to approximately ₹17.5 lakh by the end of 21 years. This amount can support higher education or marriage expenses, reducing financial stress for parents.
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Eligibility and Account Opening
To open an SSY account:
- The girl child must be below 10 years of age and an Indian resident.
- Parents or legal guardians can open and operate the account.
- The minimum deposit is ₹250 per year, while the maximum is ₹1.5 lakh per year.
Accounts can be opened at post offices or authorized bank branches by submitting the girl child’s birth certificate, along with the parent’s identity and address proofs.
Key Features and Benefits
High Interest Rate – SSY offers one of the highest returns among small savings schemes, higher than bank FDs.
Triple Tax Benefit – It falls under the EEE category: deposits are deductible under Section 80C, interest is tax-free, and maturity proceeds are also exempt from tax.
- Safe and Secure – Being government-backed, the investment carries no market risk.
- Flexible Contributions – Deposits can range from ₹250 to ₹1.5 lakh annually.
- Encourages Discipline – With its long tenure, the scheme ensures systematic and dedicated savings.
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Withdrawal Rules and Lock-In Period
Deposit Period: Contributions are required for 15 years. After that, no deposits are needed, but the account continues to earn interest until 21 years.
- Partial Withdrawal: Up to 50% of the balance is allowed when the girl turns 18, for education or marriage expenses.
- Premature Closure: Permitted in exceptional cases like medical emergencies or death of the account holder.
- This structure ensures that the funds are used only for the girl child’s welfare.
Tax Benefits
One of SSY’s strongest advantages is its tax treatment. Parents can claim up to ₹1.5 lakh deduction under Section 80C each year. Additionally, the interest earned and maturity amount are fully exempt from tax.
This triple benefit makes it far superior to options like fixed deposits, where interest is taxable.
How SSY Compares with Other Savings Options
Fixed Deposits: Safe, but with lower returns and taxable income.
- Public Provident Fund (PPF): Offers good returns and tax benefits but is not dedicated to children’s goals.
- Mutual Funds/Equities: Potentially higher returns but come with market risks.
- SSY balances safety, decent returns, and tax savings, making it ideal for goal-based child planning.
Common Mistakes Parents Should Avoid
- Not maintaining minimum deposits: Failing to deposit ₹250 annually makes the account inactive.
- Depositing beyond 15 years: Contributions are only required for 15 years; after that, interest continues automatically.
- Starting late: Opening the account early maximizes compounding and gives higher maturity benefits.
Why Early Planning Matters
The earlier the account is opened, the longer the money has to compound. Parents who start just after their daughter’s birth can enjoy the full 21-year maturity period, ensuring maximum growth. Even small savings like ₹104 per day make a huge difference when given enough time.
Conclusion
The Sukanya Samriddhi Yojana is not just a savings plan but a thoughtful step toward securing your daughter’s dreams. With consistent contributions of just ₹104 per day, parents can build a fund of nearly ₹17.5 lakh, ensuring money is never a barrier to her education or marriage.
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Backed by the government, offering high returns, and providing tax exemptions, SSY remains one of the most reliable child savings schemes in India. By starting early and saving regularly, parents can give their daughters not only love and care but also a financially secure tomorrow.
Disclaimer: This article is for educational purposes only and should not be considered financial advice. Interest rates and rules are subject to change as per government updates. Please consult a financial advisor before investing.