Sukanya Samriddhi Yojana Calculator Guide - SSY Investment Planning
What is Sukanya Samriddhi Yojana (SSY)?
Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme designed specifically for the girl child under the 'Beti Bachao Beti Padhao' campaign. Launched in 2015, this scheme offers attractive interest rates, tax benefits, and helps secure your daughter's financial future for education and marriage expenses.
SSY Key Features and Benefits
- High Interest Rate: Currently offering 8.2% per annum (reviewed quarterly)
- Tax Benefits: Triple tax benefit - EEE (Exempt-Exempt-Exempt)
- Government Backed: 100% safe investment guaranteed by Government of India
- Long-term Compounding: Interest compounds annually for 21 years
- Flexible Investment: Minimum ₹250 to maximum ₹1.5 lakh per year
- Partial Withdrawal: 50% withdrawal allowed after age 18 for higher education
SSY Eligibility Criteria
- Age Limit: Girl child must be below 10 years at account opening
- Citizenship: Indian citizen or resident
- Account Limit: Maximum 2 accounts per family (for 2 girl children)
- Parent/Guardian: Natural or legal guardian can open account
- Documentation: Birth certificate and KYC documents required
SSY Investment Rules and Limits
| Parameter | Details |
|---|---|
| Minimum Investment | ₹250 per year |
| Maximum Investment | ₹1,50,000 per year |
| Investment Period | 15 years from account opening |
| Maturity Period | 21 years from account opening |
| Interest Rate | 8.2% p.a. (current rate, subject to revision) |
SSY Tax Benefits Under Income Tax Act
- Section 80C Deduction: Investment amount qualifies for tax deduction up to ₹1.5 lakh
- Tax-free Interest: Annual interest earned is completely tax-free
- Tax-free Maturity: Entire maturity amount is exempt from tax
- No TDS: No tax deduction at source on interest or maturity
- EEE Status: Exempt at entry, exempt during investment, exempt at exit
SSY vs Other Investment Options for Children
| Investment | Interest Rate | Tax Benefit | Lock-in Period |
|---|---|---|---|
| Sukanya Samriddhi Yojana | 8.2% | EEE (Triple Benefit) | 21 Years |
| PPF | 7.1% | EEE (Triple Benefit) | 15 Years |
| Child FD | 6-7% | Interest Taxable | 5-10 Years |
| Child Mutual Fund | 10-12% | LTCG Tax | No Lock-in |
SSY Withdrawal Rules and Conditions
- Partial Withdrawal: 50% of balance allowed after girl turns 18 for higher education
- Premature Closure: Allowed after 5 years with penalty and reduced interest
- Account Transfer: Can be transferred anywhere in India
- Marriage Withdrawal: Full withdrawal allowed after age 18 for marriage
- Maturity: Full amount available when girl turns 21
How to Open SSY Account
- Visit any authorized bank or post office
- Fill the SSY account opening form
- Submit girl child's birth certificate
- Provide KYC documents of parent/guardian
- Make minimum initial deposit of ₹250
- Receive passbook and account details
SSY Account Management
- Annual Deposits: Must make deposits for 15 consecutive years
- Default Penalty: ₹50 penalty if minimum ₹250 not deposited in a year
- Account Revival: Defaulted accounts can be revived with penalty payment
- Account Transfer: Transfer to girl child after she turns 18
- Nominee: Parent/guardian remains nominee until maturity
SSY Investment Strategies
- Maximum Investment: Invest ₹1.5 lakh annually for maximum returns
- Early Start: Open account when child is 1-2 years old for maximum benefit
- Consistent Investment: Maintain regular deposits to avoid penalties
- Step-up Investment: Gradually increase investment amount each year
- Combined Strategy: Use with other child investment options
Who Should Invest in SSY?
- Parents of Girl Child: Ideal for securing daughter's future
- Tax Savers: Those looking for Section 80C benefits
- Conservative Investors: Risk-averse investors preferring guaranteed returns
- Long-term Planners: Parents planning for daughter's education and marriage
- Government Scheme Believers: Those trusting government-backed investments
Common SSY Mistakes to Avoid
- Late Start: Opening account when child is close to 10 years
- Irregular Deposits: Missing annual deposits and incurring penalties
- Minimum Investment: Investing only minimum ₹250 instead of maximizing
- Ignoring Updates: Not keeping track of interest rate changes
- Wrong Documentation: Providing incorrect details in application
Pro Tip: Use our SSY calculator to plan the optimal investment strategy for your daughter's future. Start early, invest consistently, and maximize the investment to ₹1.5 lakh per year for the best results. SSY offers the perfect combination of safety, tax benefits, and attractive returns for your girl child's financial security.