• Post Offices
• Public sector banks (like SBI, PNB, Bank of Baroda, etc.)
• Authorized private banks

Banks and post offices have simplified the account opening process, making it accessible even in remote areas.

4. Documents Required

To open an SSY account, the following documents are needed:

• Birth certificate of the girl child.
• Identity proof (Aadhaar, PAN, etc.) of the guardian.
• Address proof of the guardian.
• Passport-size photographs.

5. Deposit Rules

• The minimum deposit in a financial year is ₹250.
• The maximum deposit allowed in a financial year is ₹1.5 lakh.
• Deposits can be made in lump sum or in multiple installments.
• If the minimum deposit is not maintained, the account is considered “defaulted,” but can be revived by paying a small penalty plus the minimum deposit.

6. Interest Rate

SSY offers one of the highest interest rates among small savings schemes. The rate is revised quarterly by the government. As of the quarter ending June 2025, the interest rate is around 8.2% per annum, compounded yearly. (Note: Rates change over time.)

Compared to regular bank savings accounts or fixed deposits, this rate is significantly higher, making SSY an attractive option.

7. Duration and Maturity

• The account matures after 21 years from the date of opening.
• Deposits are required only for 15 years from the account opening date. No further deposits are mandatory after 15 years, but the account continues to earn interest until maturity.
• The account can be closed earlier in certain cases:
  • Marriage of the girl after attaining 18 years of age (proof required).
  • Death of the account holder or the girl child.
  • Life-threatening illness or medical emergencies (with permission from authorities).

8. Withdrawal Rules

The scheme allows:

• Partial withdrawal of up to 50% of the balance for the girl’s higher education after she turns 18 or passes 10th standard, whichever is earlier. The withdrawal can be done in one lump sum or in installments.
• Complete withdrawal at maturity (i.e. after 21 years).

This ensures the funds can be used at crucial milestones in the girl’s life, particularly for education.

9. Tax Benefits

SSY enjoys EEE (Exempt-Exempt-Exempt) status under the Income Tax Act:

1. Invested amount: Eligible for deduction under Section 80C (up to ₹1.5 lakh per year).
2. Interest earned: Completely tax-free.
3. Maturity proceeds: Fully exempt from tax.

This tax advantage makes SSY highly appealing compared to other fixed-income instruments.

10. Transfer Facility

If the family relocates, the SSY account can be transferred easily between post offices and banks across India, free of cost (if proof of relocation is provided). Otherwise, a nominal fee is charged.

11. Benefits of SSY

• High Interest Rate: Generally higher than other small savings schemes.
• Risk-Free: Being government-backed, the scheme offers complete safety.
• Disciplined Saving: Encourages regular saving habits.
• Tax-Free Returns: EEE status ensures no tax liability.
• Empowerment of Girls: Provides financial support for crucial life goals.

12. Limitations

While SSY is a robust scheme, it has some limitations:

• Lock-in period: Funds are largely locked until maturity except for partial withdrawals.
• Penalty for default: Missing annual deposits incurs penalties.
• Gender-specific: Exclusively for girl children.

However, these limitations are relatively minor when compared to the long-term benefits the scheme offers.

13. Maturity Example Calculation

Let’s see how SSY grows over time. Suppose:

• Annual deposit = ₹50,000
• Interest rate = 8.2%
• Period of deposit = 15 years
• Maturity period = 21 years

By the end of 21 years, the account could grow to nearly ₹21–23 lakhs, depending on the exact interest rates over the period. This sizable corpus is invaluable for higher education or marriage expenses.

How to Operate the Account?

• Deposits can be made via cash, cheque, demand draft, or online transfer (in banks).
• The passbook records transactions and is updated regularly.
• Statements can be downloaded in case of online banking facilities.

Conclusion

Sukanya Samriddhi Yojana is more than just a savings plan; it’s a social and financial tool empowering girl children. It helps parents secure the financial future of their daughters and contributes towards gender equality by easing the financial burden associated with education and marriage.

Given its attractive interest rates, tax-free status, and government guarantee, SSY remains one of the most beneficial small savings schemes in India for families planning for their daughter’s future. Whether you’re looking to save for higher education or ensure financial security, SSY is a reliable and purposeful investment avenue.

In summary, Sukanya Samriddhi Yojana stands as a symbol of hope and empowerment, transforming the way India saves for its daughters’ bright futures.