Introduction to Sukanya Samriddhi Scheme
The Indian government, in 2015, along with the Beti Bachao, Beti Padhao initiative, launched the Sukanya Samriddhi Scheme, focusing on the education and financial safety of girl children. With the rising cost of higher education and marriage, this scheme is aimed at helping parents build a corpus through disciplined long-term savings. This initiative further seeks to provide enhanced educational and financial opportunities for the girl child.
Eligibility and Account Opening
Sukanya Samriddhi Account can be opened by parents or guardians for any girl child under the age of 10 years. Each girl child is permitted only one account and two accounts are permissible per family. In the case of twins or triplets, family policy exceptions may apply. The account can be opened in any participating public or private sector bank branch and authorised post office.
To set up the account, the following information is needed:
* A girl's birth certificate
* Identity and residency documents of the parent or guardian
* Passport-sized photos
Rules of Contribution and Deposit
An account can be maintained as long as there is a minimum deposit of ₹250 for each financial year. The cap on the deposit in a financial year is, however, ₹1.5 lakh. Contributions towards the deposit can be made in a lump sum or in multiple instalments during the year. It is expected that deposits will be made only for a period of 15 years from the date of account opening, with the account maturing after 21 years.
In other words, the account has to be funded for 15 years, but if you stop funding it after 15 years, the account still earns interest until the maturity date.
Interest on Sukanya Samriddhi Scheme
A key benefit of the Sukanya Samriddhi Scheme is the **high interest rate** it offers. The interest rate stands at **8.2% per annum** for the April–June period of FY 2025–26, and will be revised quarterly. The average interest rate on small saving schemes is lower than this one.
The credited interest is added to the current balance of the account at the end of the year, without any tax deductions.
Tax Advantages of Sukanya Samriddhi Scheme
The Sukanya Samriddhi Scheme comes under the EEE (Exempt-Exempt-Exempt) classification. This means that:
* A deposit of ₹1.5 lakh in a year qualifies for tax exemption under Section 80C of The Income Tax Act.
* The interest earned is fully exempt from taxation.
* The maturity amount is also tax exempt.
This makes the account an especially favourable choice for investments requiring tax-advantage benefits while planning for the future.
Maturity and Withdrawal Rules
The Sukanya Samriddhi Account matures 21 years after the account has been opened. However, partial withdrawal of up to 50% of the balance can be made once the girl child turns 18, provided the purpose is related to higher education. A valid proof of admission is needed in order to facilitate the process.
Complete premature closure is allowed under the following conditions:
* Death of the account holder
* Life-threatening or critical illness
* Financially distressing situation of the claimant upon submission of relevant documents
In the normal case, the account matures either after 21 years or when the girl gets married above 18. If the girl gets married before 21, the account can be closed and funds withdrawn by providing proof of age and marriage.
Default and Account Revival
In the event that a user does not make the annual minimum deposit of ₹250 in any financial year, the account would be considered defaulted. This defaulted account can be revived by paying a penalty of 50 along with the minimum deposit for each defaulted year billed to the account.
An account must be regularly funded to maintain an active status and to earn interest without interruptions.
Why You Should Consider the Sukanya Samriddhi Scheme
The Sukanya Samriddhi Scheme is aimed at very conservative investors who seek reliable, long-term savings options for their daughters. This scheme does not involve market-linked investments because it has the backing of the Government of India and thus, offers guaranteed returns with full capital protection.
This scheme is highly recommended because of its combination of **high interest rates, tax savings, and a well-defined purpose-driven goal** which in this case is saving for a girl's future. This plan serves to foster early and disciplined financial planning among the child's parents or guardians.
Final Thoughts
These funds can be entirely withdrawn once they are no longer needed which provides families peace of mind, thus making the Sukanya Samriddhi Scheme not just a savings tool, but rather a financial instrument used to secure a girl's future.
The scheme is advantageous for Indian families because of the supported policies, managing inflated costs of education, and the need for secure long-term saving options. Parents can effortlessly enable their daughters' aspirations by building a strong, supportive financial foundation through sufficient investment and early starts.
