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Everything you need to know about Sukanya Samriddhi Yojana

Personal Finance

The well-being of girls is one of the core things which should be focused on. This is especially needed in rural areas. For decades, women weren’t provided with the same facilities and benefits as men in India. Its damage to the progress of society can’t be denied. In today’s society, there are many aspects of girls which can be improved. Some of them include:

  • Education for girls.
  • Healthcare.
  • Employment.
  • Safety.

Education for girls is one of the areas which needs the most upgrade. For this, PM Narendra Modi launched the “Beti Bachao Beti Padhao” campaign on 22nd January 2015. One of the most prominent schemes of this campaign was Sukanya Samriddhi Yojana. The article below will discuss everything you need to know about it.

What is Sukanya Samriddhi Yojana?

This scheme is a worthy choice for parents to fund their daughter’s future until her marriage. Under the scheme, the girl’s family should set up a Sukanya Yojana account for her. This should be done before she is ten years old. The account will expire 21 years after being set up.

This limit does not apply if the girl marries before the end of that period. The Sukanya Samriddhi Yojana account does not work after marriage. If there are no deposits in any of the years, the banks consider the account “default”. The minimum amount that you can invest is ₹250 per year. This is very helpful for low-income families. The maximum amount is ₹1,50,000 annually. 

You can set up a Sukanya Samriddhi Yojna account in most authorized post offices and banks. The process is done through online means as well. You should submit the documents for the girl’s identity. These include birth certificates, an Aadhaar card, etc.

Other Sukanya Samriddhi Yojna Details

You must make annual deposits to the Sukanya Samriddhi Yojna account for 15 years after setting it up. The deposit will continue to accumulate until the account expires. Annual interest will be charged on it as determined by the Government of India. This interest is calculated based on your minimum account balance from the 5th to the end of the month. Henceforth, your best option would be to pay the instalments before the fifth day of every month.

Upon maturity, the girl will receive the entire accrued amount. Usually, the account is established and handled by her parents or guardians. Yet, she has permission to operate it herself from the age of 18 by submitting the required documents.

When the girl reaches 18 years of age, partial withdrawal of up to 50% of the balance is allowed to meet the need for her education.

Besides a written application, you will need a fee slip from the institution. A certified admission offer from the school stating the necessary funds will also do. The withdrawal amount will only be as much as the true demand for the fee. The charges in the admission offer or the apt fee slip given during admission are also covered.

The early closure/withdrawal of the account is only valid in the following cases:

  • If the girl suddenly passes away.
  • If the girl is no longer a citizen. The change in citizenship should be informed one month before the bank.
  • The depositor is financially unable to contribute to the account.
  • If the girl marries as soon as she turns 18. The owner of the account should appeal twice:
    •  One month before the marriage
    •  Three months after the marriage.

Calculation of Interest:

The Government uses G-sec yields as a basis to determine the interest rates quarterly. Currently, the Sukanya Samriddhi Yojana has a 7.5% interest rate differential over the G-sec rate for a similar maturity. The account will be credited with annual compound interest at the rate that the government will announce.

If the account holder chooses monthly interest, it will be calculated on the following basis:

  • On the account’s balance in completed thousands
  • On the balance that will be paid to the account holder
  • In the fraction of thousands that remain, which will continue to earn interest at the rate in effect. 

The amount rounded off to thousands is considered for monthly interest. The remaining balance will continue to accumulate interest at the current rate. The deposits between the end of the 10th day and the end of the calendar month are used to calculate the interest. It will calculate interest for the entire month. The calculation is based on the account’s lowest balance.


The returns offered by the Sukanya Samriddhi Yojana are a huge source of comfort to families. Currently, its interest rate is 7.6% annually. It is higher than the interest earned on bank deposits and other scheme instruments. This makes it a safe option for families to invest in a girl’s higher education or future marriage.

Let’s sum up all the advantages of the SSY scheme.

  • The account can be opened with a deposit of a mere Rs.250, making it affordable for millions of families in India.
  • You can withdraw nearly half of the entire accumulation. This will likely meet the needs in studies and marriage. 
  • There is no tax on the annually compounded interest. The same goes for the sum received when the account expires.
  • You are not required to make further investments as soon as the account reaches fifteen years. The collected savings will keep accumulating interest until the owner shuts it down.


Families often search for an income source for the bright future of their daughters. Sukanya Yojana is highly useful for them. The scheme provides stable financial support to the family. It includes a sovereign guarantee. It is an EEE program that allows parents and daughters to utilize it in many ways. 

You can check out further details and queries about the Sukanya Samriddhi Yojna on our website Piramal Finance. It’ll be our sincere pleasure to help you out.