What is Sukanya Samriddhi Yojana (SSY)?
Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme in India aimed at the welfare of the girl child. Launched under the “Beti Bachao Beti Padhao” campaign, it encourages parents to save for their daughter’s education and marriage expenses.
- Eligibility: Parents or guardians of a girl child below 10 years of age can open an account.
- Account Duration: The account matures after 21 years from the date of opening or upon the girl’s marriage after 18 years of age.
- Deposit Period: Contributions can be made for up to 15 years.
- Interest rate: Compounded annually (set by the government and revised quarterly).
Benefits of Sukanya Samriddhi Yojana (SSY)
| Benefit | Description |
|---|---|
| High Interest Rate | Typically higher than fixed deposits and many savings schemes. |
| Tax Benefits | Contributions qualify for deduction under Section 80C; interest and maturity amount are tax-free. |
| Long-term Savings | Helps in building a corpus for girl child’s education and marriage. |
| Low Minimum Deposit | Starts from as low as ₹250 per year. |
| Partial Withdrawal Allowed | Up to 50% withdrawal for education or marriage after the girl turns 18. |
| Safe and Government-backed | Minimal risk since it’s backed by the Government of India. |
Risks of Sukanya Samriddhi Yojana (SSY)
| Risk | Description |
|---|---|
| Lock-in Period | Funds are locked for a long period (21 years maturity), limited liquidity. |
| Interest Rate Fluctuation | Interest rates are reset quarterly, so returns may vary. |
| Premature Closure Restrictions | Allowed only in exceptional cases (death or marriage after 18), no partial premature withdrawal except specific cases. |
| Limited Contribution Window | Deposits allowed only for first 15 years after account opening. |
Top 10 Sukanya Samriddhi Yojana Plans in India?
Actually, SSY is a single government scheme and does not have multiple competing “plans” like private financial products. Instead, it is offered by multiple authorized banks and post offices with the same terms and conditions set by the government.
However, I can compare SSY accounts offered by different banks and post offices based on some parameters like ease of access, customer service, and digital facilities. Here’s a tabular comparison for the most popular providers:
| Institution | Interest Rate* | Account Opening Mode | Digital Access | Customer Service | Pros | Cons |
|---|---|---|---|---|---|---|
| India Post | 8.0% (as of May 2025) | In-person at Post Office | Limited online services | Good reach in rural areas | Widest accessibility, trusted by many | Digital access limited, manual process |
| State Bank of India | 8.0% | Online & Offline | Good | Excellent | Easy online account opening and tracking | Slightly complex documentation |
| Punjab National Bank | 8.0% | Online & Offline | Moderate | Good | Decent digital services | Some branch dependency |
| Bank of Baroda | 8.0% | Offline only | Limited | Average | Good presence in semi-urban areas | No full digital services |
| HDFC Bank | 8.0% | Online & Offline | Very Good | Excellent | User-friendly online portal | May have higher KYC requirements |
* Interest rates are uniform as per government notifications but may differ slightly by provider in actual service delivery speed and ease.
Summary Table of Pros and Cons of SSY Across Providers
| Provider | Pros | Cons |
|---|---|---|
| India Post | Accessibility, trust, low fees | Manual processes, limited tech |
| SBI | Easy online process, reliability | Documentation can be complex |
| PNB | Decent digital access | Partial branch dependency |
| Bank of Baroda | Good regional presence | No full digital account management |
| HDFC Bank | Excellent digital interface | KYC procedures might be complex |
Frequently Asked Questions (FAQs) about Sukanya Samriddhi Yojana (SSY)
- Who can open SSY account?
Parents/guardians of a girl child below 10 years can open the account. - What is the minimum and maximum deposit?
Minimum ₹250 per year; maximum ₹1.5 lakh per year. - Can I open more than one SSY account for my daughter?
No, only one account per girl child. - When can I withdraw money from SSY?
Partial withdrawal (up to 50%) allowed after the girl turns 18 for education/marriage expenses. - What is the maturity period of SSY?
21 years from the date of account opening. - Is SSY interest rate fixed?
No, the government revises it quarterly. - Is premature closure allowed?
Yes, only in case of the girl’s marriage after 18 or death. - Are contributions tax-deductible?
Yes, under Section 80C. - Is interest earned taxable?
No, the interest earned and maturity amount are exempt from tax. - Can a guardian other than parents open the account?
Yes, legal guardians can also open the account.