The Sukanya Samriddhi Yojana (SSY), part of the Beti Bachao Beti Padhao initiative, is one of the most popular government-backed savings schemes in India, designed specifically for parents to save for their daughter's future. Whether for higher education or marriage, this scheme provides a secure way to ensure your daughter has a strong financial foundation. By contributing regularly, parents can accumulate a significant amount by the time their daughter reaches adulthood.

Key Features of SSY:

• Interest Rate: The scheme offers an attractive interest rate of 8.2%, which is higher than the rates offered by most banks on fixed deposits (FDs).
• Tax-Free Benefits: The interest earned is completely tax-free, making it an ideal option for long-term savings.
• Tax Deductions: Contributions made to the SSY qualify for tax deductions under Section 80C of the Income Tax Act, allowing parents to save up to Rs 1.5 lakh annually.

Who Can Open an SSY Account?

To open an SSY account, the following conditions apply:

• Eligibility: Parents or legal guardians can open an SSY account on behalf of a girl child who is 10 years old or younger. Only one account can be opened per daughter.
• Required Documents: A birth certificate, ID proof, and address proof are necessary to open the account.
• Where to Open: You can open the account at the nearest post office or bank branch.

How Does the Scheme Work?

• The SSY account matures 15 years after opening, giving full access to the funds.
• Partial withdrawals are allowed once the girl turns 18 for her higher education. If the daughter gets married before the account matures, the account must be closed.
• Full maturity benefits are available when the girl turns 21. By this time, the savings have grown significantly, thanks to the high interest rate and the power of compounding.

How to Reach Rs 71 Lakh?

By contributing the maximum allowed amount of Rs 1.5 lakh annually for 15 years, the final maturity amount will grow to approximately Rs 71.82 lakh. Here’s how it works:

• Initial Investment: Rs 22.5 lakh is your total investment (Rs 1.5 lakh annually for 15 years).
• Interest Growth: The remaining Rs 49.32 lakh comes from the interest earned at a rate of 8.2%, compounded annually.

The best part? This entire amount is tax-free when withdrawn after maturity, offering a solid return on your investment.

Who Can Manage the SSY Account?

As of October 1, 2024, only parents or legal guardians can manage the SSY account. If the account was opened by someone other than the legal guardian or parents, it must be transferred to the rightful guardian, or it will be closed. This ensures that the savings are being managed responsibly for the benefit of the child.

Why Choose the Sukanya Samriddhi Yojana?

The Sukanya Samriddhi Yojana offers an excellent way to secure your daughter’s financial future with:

• A high interest rate of 8.2%
• Tax-free maturity and tax deductions
• Government-backed security

By making regular contributions, parents can ensure that their daughter has a solid financial foundation by the time she turns 21, helping her pursue higher education, start a career, or even get married with financial stability.