Sukanya Samriddhi Yojana: Hello friends, every parent desires that their daughter’s education and marriage be free from financial difficulties. Understanding this sentiment, the government launched the Sukanya Samriddhi Yojana (SSY).

This scheme is not just a way to save money, but a strong effort to secure a daughter’s dreams, where small savings today meet the big needs of tomorrow.

What is the Sukanya Samriddhi Yojana and why is it considered special?

The Sukanya Samriddhi Yojana is an important part of the Save the Daughter, Educate the Daughter campaign. The scheme aims to encourage parents to make long-term, secure savings in their daughter’s name.

It is a government-backed fixed-income scheme that can be opened at post offices or authorised banks. Due to the government-fixed interest rate, the risk is almost negligible, and the investment is completely safe.

Some highlights of the Sukanya Samriddhi Yojana

• This account is opened only in the name of a girl child.
• An account can be opened from the birth of a girl child until she reaches the age of 10.
• The scheme is government-run and secure.

Substantial interest and tax benefits under the SSY Scheme

Currently, the Sukanya Samriddhi Yojana offers an annual interest rate of 8.2 per cent, making it one of the most attractive government savings schemes.

The biggest strength of this scheme is its tax-free benefit. The amount deposited, the annual interest, and the entire maturity amount are completely exempt from income tax. This is why this scheme also provides peace of mind to parents.

• Tax and interest benefits of the SSY Scheme
• Attractive and stable interest rates
• No tax on interest
• The maturity amount is completely tax-free

Maturity period and withdrawal facility

The Sukanya Samriddhi Yojana has a maturity period of 21 years, calculated from the date of account opening. After the daughter turns 18, partial or full withdrawals are available for her higher education or marriage. This facility is extremely useful when major expenses arise, and parents do not need to take out a loan.

Key Withdrawals:

• The account fully matures at 21 years of age.
• Withdrawals are possible for studies after 18 years of age.
• The amount can also be withdrawn at the time of marriage.

Sukanya Samriddhi Yojana vs. PPF and Mutual Funds

Comparing SSY with PPF, both schemes are safe. However, SSY is specifically designed for the daughter’s future and often offers higher interest rates.

Mutual funds may offer higher returns, but they carry market risk. For parents who want to create a safe fund for their daughter while avoiding risk, SSY offers a balanced and reliable option.

Which families are best suited for SSY?

Sukanya Samriddhi Yojana is an ideal option for parents who want to plan for the long term and build a risk-free fund for their daughter’s education and marriage. This scheme is especially useful for families who prioritise safe returns along with tax savings.

Frequently Asked Questions (FAQs)

Question: When can an account be opened under the Sukanya Samriddhi Yojana?

Answer: An SSY account can be opened from the daughter’s birth until she reaches the age of 10.

Question: Is the interest earned under SSY completely tax-free?

Answer: Yes, there is no tax on the deposit amount, interest, or maturity amount.

Question: Can funds be withdrawn mid-term for studies?

Answer: Yes, partial withdrawals are allowed for higher education after the daughter turns 18.

Question: Is SSY safer than mutual funds?

Answer: Yes, SSY is a government scheme, whereas mutual funds are market-linked and carry risk.

Disclaimer: This article is for general information purposes only. Before investing, carefully read the terms and conditions of the scheme and consult a financial advisor if necessary.

Also Read:

How MP CM Kisan Kalyan Yojana Is Bringing Real Relief to Farmers