Sukanya Samriddhi Yojana is a government-initiated small savings scheme to benefit the female child. The scheme is included in the Beti Bachao Beti Padhao Yojana, wherein parents of a girl child below the age of 10 can open an account in her name.
 

This account can be opened at designated post offices or banks. The SSY scheme has a tenure of 21 years until the girl child gets married at 18. This scheme offers a higher interest rate and entails tax benefits as well.
 

The family will have to deposit a minimum of ₹ 250. In subsequent years the amount can range between a maximum deposit of ₹ 1.5 lakhs and a minimum deposit of ₹ 250 during the ongoing financial year.
 

The Sukanya Yojana allows for partial withdrawal of 50% of the balance after the girl child turns eighteen to meet the child's higher education requirements.
 

This blog includes all important information that you must know about the Sukanya Samriddhi Yojana.
 

Eligibility of Sukanya Samriddhi Yojana
 

Just like every government-backed investment scheme, the Sukanya Yojana has certain eligibility criteria:

• Only legal guardians or parents of a girl child can open a Sukanya Samriddhi Yojana account 
• The girl child must be below ten years of age at the time of account initiation
• Only a single account can be opened in the name of a girl child 
• Only two accounts are allowed for a family under the Sukanya Samriddhi Yojana. Which means one for each girl child. 
   

However, a Sukanya Samriddhi Yojana can be opened for more than two girls in special cases such as: 

• A third account can be allowed if the child is born before the birth of a triplet or twins, or vice versa. 
• A third account cannot be allowed if the girl is born after the birth of twin or triplet female children.
   

Interest Rates in Sukanya Samriddhi Yojana 2023
 

Sukanya Samriddhi Yojana's interest rates are declared by the Indian government quarterly. For quarter 2, from July to September of 2023-24, the interest rates are 8% annually.
 

Deposit Limits for Sukanya Samriddhi Yojana
 

The minimum annual contribution that can be made under this scheme is ₹ 250, while the maximum is ₹ 1.5 lakh in a financial year. The parents must invest at least the minimum amount every year for up to 15 years from the account's opening date. And after that, the account will continue to earn interest until maturity.
 

The maturity period arrives when the girl attains is 21 years old or gets married after 18 years. However, contributions toward the Sukanya Samriddhi Yojana account must only be made for 15 years.
 

What are the Benefits of Investing in Sukanya Samriddhi Yojana?
 

Introduced as a part of the Indian government's scheme to promote the education and progress of the girl child, the Sukanya Samriddhi Yojana offers the following benefits: 
 

• High-Interest Rate

  Sukanya Samriddhi Yojana offers a higher fixed income rate than other government-initiated tax-saving schemes like the Public Provident Fund. As mentioned, it currently offers 8% per annum as interest for Q2 FY 2023-23. One can calculate the interest rate via the Sukanya Samriddhi Yojana calculator or SSY calculator, as it is usually called. 
   

• Flexibility

  The scheme offers a flexible investment allowing one to make a minimum deposit of ₹ 250 to a maximum deposit of ₹ 1.5 lakhs. This indicates that people can invest in this scheme as per their financial standing. 
   

• Tax benefits and guaranteed returns

  Sukanya Samriddhi Yojana is a government investment scheme. Hence, it offers guaranteed returns. It also provides tax deduction benefits. This is encompassed under Section 80C of the Indian Income Tax Act of up to ₹ 1.5 lakh annually. 
   

• The benefit of compounding

  Sukanya Samriddhi Yojana is an efficient long-term investment scheme. It provides the benefit of annual compounding, which means even small investments will give you higher returns. 
   

• The convenience of transfer

  The account under the scheme can be transferred from one part of the country to another via post offices and banks.  Such transfer can occur if the parent or guardian in charge of the Sukanya Samriddhi account is transferred elsewhere.
   

Ways to invest in the Sukanya Samriddhi Yojana
 

One can easily invest in the Sukanya Samriddhi Yojana scheme through your nearby designated public and private bank or post office. For the documents, you will need to submit KYC documents like Aadhar Card, Passport, etc. You must submit a form and send the initial deposit by cheque or draft.
 

Investors of the Sukanya Samriddhi Yojana scheme can download the Sukanya Samriddhi Yojana new account application form from the following portals: 
 

• India Post Website
• The Reserve Bank of India Website
• Individual websites of public sector banks (SBI, PNB, BoB, etc.)
• The websites of private sector banks participating in the scheme like ICICI Bank, Axis Bank, and HDFC Bank)

Irrespective of the sources of download, the fields and criteria in the form remain the same.
 

Conclusion
 

Besides rendering higher investment benefits, Sukanya Samriddhi Yojana is designed to be EEE (Exempt, Exempt, Exempt) investments. EEE means the amount invested, the interest earned, and the maturity amount are tax-free! 
 

Moreover, withdrawals can be made from the SSY account up to 50% of the balance at the end of the previous financial year once the girl has passed 10th grade or is above 18. This withdrawal is primarily designed to meet the expenses of the girl child's higher education. 
 

A maximum of one withdrawal can be made in a year. This withdrawal can either be in a lump sum or instalments for a maximum period of 5 years, subject to the ceiling amount and actual requirement of fees or other charges.
 

You can easily know the interest and maturity amount on the Sukanya Samriddhi Yojana Calculator. The SSY calculator is available on multiple online portals for easy access.