Sukanya Samriddhi Account (SSA), popularly known as Sukanya Samriddhi Yojana (SSY), is one of the popular investment schemes for a girl child. This small savings scheme has been designed specifically for girl children and currently offers an interest rate of 8.2% per annum, compounded annually.
If the parent of a girl child consistently invests the full limit of annual deposits in Sukanya Samriddhi Yojana, they can create a substantial amount that can be used for the education or marriage of the girl child.
Sukanya Samriddhi Yojana details
Under SSY rules, parents or legal guardians can open an account in the name of a girl child before she turns 10 years old. Investments can continue for 15 years from the date of account opening, while the account matures after 21 years.
The minimum contribution in SSY in a financial year is Rs 250, while the maximum is Rs 1.5 lakh.
Here’s a look at how investments of Rs 50,000, Rs 1 lakh and Rs 1.5 lakh in a financial year in Sukanya Samriddhi Yojana may grow over the long term under the current interest rate structure.
Can you build a Rs 50 lakh corpus for your girl child through SSY?
If a parent invests Rs 50,000 every year in Sukanya Samriddhi Yojana for 15 years, the total investment made will be Rs 7.5 lakh. At the current interest rate of 8.2% per annum, compounded annually, the maturity corpus after 21 years can grow to more than Rs 23.94 lakh.
In SSY, you invest for 15 years, but since the maturity period is 21 years, you get compound interest for 6 more years without investing.
Can a Rs 1 lakh annual deposit in SSY generate a Rs 50 lakh corpus for your girl child?
Rs 1 lakh deposit per financial year× 15 years = Rs 15 lakh deposit
At the current SSY interest rate, the maturity corpus may grow to around Rs 47 lakh plus lakh after 21 years.
Can a Rs 1.5 lakh annual deposit in SSY generate a Rs 50 lakh corpus for your girl child?
Rs 1.5 lakh/financial year deposit × 15 years = Rs 22.5 lakh deposit
Yes, at the current rate of 8.2%, the maturity amount after 21 years can grow to approximately Rs 71 lakh.
Tax benefits under SSY
Sukanya Samriddhi Yojana also offers EEE (Exempt-Exempt-Exempt) tax status:
Investments qualify for deduction under Section 80C in the old tax regime
Interest earned is tax free
Maturity proceeds are also tax free
Is Aadhaar of the guardian of a girl child required to open a Sukanya Samriddhi Account?
Yes, an SSY account can be opened with Aadhaar as the primary identity source. If the Aadhaar number has not been assigned to the guardian, the proof of the Aadhaar enrolment number can be provided to open the SSY account. But a customer has to submit Aadhaar within six months from the SSY account opening date for linking. If Aadhaar has not been submitted within six months from the account opening date, the account shall cease to be operational till the time he submits his Aadhaar card number.
How many SSY accounts can be opened in one family?
An account under the SSY scheme may be opened for a maximum of two girl children in one family.
Additionally, more than two accounts may be opened in a family if such children are born in the first or in the second order of birth or in both, on submission of an affidavit by the guardian. Such an affidavit should be supported with birth certificates of twins/triplets regarding the birth of such multiple girl children in the first two orders of birth in a family.
However, the above proviso shall not apply to the girl child of the second order of birth, if the first order of birth in the family results in two or more surviving girl children.
