Update Sukanya Samriddhi Yojana Interest Rate 2025, Change in Benefits

Sukanya Samriddhi Yojana Interest Rate Prime Minister Narendra Modi introduced the "Sukanya Samriddhi Yojana (SSY)" as part of the Beti Bachao Beti Padhao campaign. The campaign's name roughly translates to "Girl Child Prosperity Scheme," in keeping with the aforementioned goals. On January 22, 2015, it was introduced in Panipat, Haryana.

What is Sukanya Samriddhi Yojana (SSY)?

A social campaign was initiated by the Government of India on January 22, 2015, with the primary goal of addressing the issue of the dropping child sex ratio in our nation. "Educate the girl child, save girls" is the message of the Beti Bachao Beti Padhao (BBBP) program. Together, the Ministry of Women and Child Development, the Ministry of Health and Family Welfare, and the Ministry of Human Resource Development are spearheading this nationwide effort.

BBBP aims to achieve the following:

• to outlaw sex determination and prevent gender discrimination against youngsters.
• to guarantee girls' survival and safety.
• to guarantee that girls participate more in school and other activities.

SSY seeks to address the financial burden of marriage and education, which is a significant issue affecting girls. In India, it aims to provide a bright future for girls by helping their parents save money for their child's proper education and carefree marriage. This is precisely why SSY created the Sukanya Samriddhi Account.

Sukanya Samriddhi Yojana Age Limit and Maturity Period

Opening SSY Account

Girls are only allowed to have one SSY account. You can open an SSY account at any authorized commercial bank branch or post office. It can be opened till the girl child turns ten years old.

Beneficiary of SSY

From the time the account is opened until it matures or is closed, any girl child who resides in India may get benefits under SSY.

Deposits under SSY

The guardian may make deposits and keep the account open until the girl child turns eighteen. By the time the girl kid reaches the age of 18, she must handle the SSY account. A minimum deposit of Rs. 250 is required for an SSY account, followed by multiples of Rs. 50. The maximum deposit amount is Rs. 1,50,000 for each fiscal year up to 15 years. Deposits may be done online, by check, demand draft, or cash.

Interest on Deposits

For the second quarter of FY 2024–2025, which runs from July 1, 2024, to September 31, 2024, the interest rate is 8.2% p.a. Taxes do not apply to the interest generated on this account. 

If the whole deposit in an "Account under default" (where a minimum of Rs. 250 annually has not been placed) is not regularized within the allotted time, interest will be paid until the account's maturity date. If a penalty of Rs. 50 is paid for each defaulted year, and an "account under the default" can be regularized within 15 years of the account establishment.

After the SSY's tenure is up, which is 21 years from the account opening date, no interest is due. Once the girl kid is no longer a resident or a citizen of India, no interest is charged. Any deposits made in excess of the annual maximum, which is Rs. 1,50,000, will not accrue interest and the depositor may withdraw them at any time.

Maturity Period of SSY

SSY's maturity period is 21 years from the account opening date or, if she marries after turning 18, after 18 years. Contributions must only be made for the first 15 years, though. The SSY account will thereafter keep earning interest until it matures.

Benefits of Sukanya Samriddhi Yojana

• Minimal Deposit: An SSY account must have a minimum deposit of Rs. 250 per fiscal year. Deposits up to Rs. 1.5 lakh every fiscal year can be made whenever it is most convenient for you. For people from all walks of life, the payments appear to be fairly reasonable. A penalty of just Rs. 50 will be applied to the missing minimum payment of Rs. 250, even if you are unable to make payments for a year. After that, the account will be restored to normal.
• Interest Rate Attractiveness: SSY accounts have one of the highest compound annual interest rates among modest savings plans, at 8.2% (for the period of July 1, 2024, to September 31, 2024).
• Tax Benefits: Section 80C of the Income Tax Act allows you to receive a complete tax deduction on your principal investments up to ₹1.5 lakh annually. The amounts at maturity and interest are both tax-free.
• Long Tenure: Invest in the future of your daughter by allowing her to mature for 21 years or until she marries after 18 years, whichever comes first.
• Covered Educational Costs: To cover your female child's educational costs, you can take out half of the account amount as of the end of the preceding fiscal year. This can only be obtained by presenting documentation of admittance once the girl child has reached the age of eighteen or completed the tenth grade.
• Guaranteed Returns: SSY is a government-backed program, therefore when it matures, returns are guaranteed.
• Easy Transfer: In India, the SSY account can be moved from any post office to a bank or the other way around.

Tax Benefits of Sukanya Samriddhi Yojana

Additionally, the SSA has been given the following tax advantages to promote investments in SSY:

• Section 80C allows for deductions for investments made in the SSY plan, up to a maximum of Rs 1.5 lakh.
• According to Section 10 of the Income Tax Act, the interest that accumulates on this account and is compounded annually is likewise tax-exempt.
• Additionally, income tax is not applied to the proceeds received upon maturity or withdrawal.

Sukanya Samriddhi Yojana Interest Rate 2025

Sukanya Samriddhi Yojana Interest Rate

The lowest balance for the calendar month—that is, the period from the fifth day of the month to the end of the month—is used to compute interest for the SSY account. At the conclusion of every fiscal year, the interest will be credited once.

In general, you may compute the interest earned on an SSY account using the formula below:

A = P(1+r/n)^nt

Here:

P = Initial Deposit
r = Rate of interest
n = Number of years the interest compounds
t = Number of years
A = Amount at maturity

Because interest on an SSY account is compounded annually, figuring out the interest by hand might not be easy. Alternatively, by inputting the information, including the girl child's age, the account start year, and the likely annual investment amount, you can use our Sukanya Samriddhi Yojana Calculator to determine the maturity amount.