Building a financial cushion for your daughter’s future requires more than just good intentions. It needs a solid plan. The Sukanya Samriddhi Yojana (SSY) is a savings scheme that helps parents put aside money in a structured way, ensuring long-term financial security. With attractive interest rates, tax benefits and a disciplined savings approach, this scheme is more than just another investment option. In this blog, we’ll break down five key facts about SSY that make it a reliable choice for securing your child’s future.
A girl can only have one SSY account
Each girl child is allowed to have only one SSY account in her name. Parents or legal guardians can open a maximum of two accounts if they have two daughters. However, in the case of twins or triplets, an exception is made, and more than two accounts may be permitted. This ensures that families can save equally for their daughters’ future.
The account can be opened till the age of 10
Parents or legal guardians can open an SSY account for their daughter anytime from birth until she turns 10 years old. This early age limit encourages parents to start saving as soon as possible, giving the investment more time to grow. The earlier the account is opened, the longer the savings can accumulate interest, making it a smart choice for long-term financial planning.
A minimum deposit of ₹250/year is required
To keep the SSY account active, a minimum deposit of ₹250 per year is mandatory. If the required amount is not deposited, the account is considered inactive or in default. A penalty of ₹50 per year is charged to reactivate the account. While ₹250 is the minimum deposit, parents can contribute up to ₹1.5 Lakh annually, helping them build a significant fund for their daughter’s future.
The sum matures when the person is 21 years old
The SSY account reaches full maturity when the account holder turns 21 years old. At this point, the entire balance, including accumulated interest, can be withdrawn for any purpose. If the account is not withdrawn after maturity, it will no longer earn interest. Therefore, it’s advisable to withdraw or reinvest the funds in other financial instruments once the account reaches its maturity period.
A premature withdrawal is allowed after the age of 18
A partial withdrawal of up to 50% of the account balance is allowed once the girl turns 18. However, this withdrawal is permitted only for specific purposes like higher education or marriage. The remaining balance continues to earn interest until the account matures at 21. This feature ensures financial support when the child needs it the most, while still maintaining disciplined long-term savings.
Last words
The Sukanya Samriddhi Yojana offers a safe and rewarding way to secure your daughter’s financial future. With an attractive interest rate of 8.2% per annum (effective from January 1, 2025, to March 31, 2025), this child education plan ensures steady growth of savings. The account can also be transferred between banks and post offices, making it flexible for parents who relocate. Opening an SSY account is simple—just visit a bank or post office with your daughter’s birth certificate, your KYC documents and the initial deposit. With disciplined savings and long-term benefits, this scheme provides financial security.
