The Sukanya Samriddhi Yojana (SSY), a government-backed savings scheme for the girl child in India, continues to be a popular investment option, and recent updates bring welcome news for beneficiaries. As of October 2025, the scheme offers an attractive interest rate of 8.2% per annum, compounded annually, making it one of the highest-yielding small savings schemes available. This rate has remained unchanged since April 1, 2024, providing stability for investors.

Key Features and Benefits

The Sukanya Samriddhi Yojana was launched on January 22, 2015, as part of the Beti Bachao, Beti Padhao campaign, aimed at promoting the welfare and education of the girl child. The scheme provides a range of benefits, including:

• High-Interest Rate: The current interest rate of 8.2% per annum is significantly higher than many fixed deposits and other government-backed schemes like the Public Provident Fund (PPF) and National Savings Certificate (NSC).
• Guaranteed Returns: As a government-backed scheme, SSY offers guaranteed returns, providing a safe and secure investment option.
• Tax Benefits: Investments in SSY qualify for tax deductions under Section 80C of the Income Tax Act, up to Rs. 1.5 lakh annually. The interest earned and the maturity amount are also completely tax-free, offering a triple tax benefit.
• Flexible Investment: The scheme allows for a minimum annual deposit of Rs. 250 and a maximum of Rs. 1.5 lakh, making it accessible to individuals with varying financial capabilities.
• Power of Compounding: The annual compounding of interest allows even small investments to grow substantially over the long term.
• Convenient Transfer: The SSY account can be easily transferred from one bank or post office to another across the country, in case of a change in the parent/guardian's location.

Eligibility and Account Details

An SSY account can be opened by parents or legal guardians for a girl child below the age of 10 years. Key eligibility criteria include:

• The girl child must be a resident citizen of India.
• Only one account can be opened per girl child.
• A family can open a maximum of two SSY accounts, one for each girl child. However, an exception is made for twins or triplets, where more than two accounts can be opened.

The account is operated by the guardian until the girl child turns 18, after which she can manage it herself by submitting the necessary documents.

Maturity and Withdrawals

The Sukanya Samriddhi Yojana account matures after 21 years from the date of opening or upon the girl's marriage after she turns 18. However, contributions need to be made only for the first 15 years. After that, the account continues to earn interest until maturity.

Partial withdrawals of up to 50% of the balance are allowed after the girl turns 18, primarily for education or marriage expenses. Premature closure is permitted if the girl gets married after turning 18.

Impact of Interest Rate Changes

While the current interest rate of 8.2% is attractive, any change in the SSY interest rate can affect the final maturity amount. Even a small increase of 0.5% can significantly boost the maturity value for long-term investors. However, a cut in the interest rate can reduce the overall corpus. The Finance Ministry reviews the SSY interest rate every quarter.

Conclusion

The Sukanya Samriddhi Yojana remains a valuable investment option for parents looking to secure their daughter's future. With its high-interest rate, tax benefits, and flexible investment options, SSY helps build a substantial corpus for education and marriage expenses. The current stable interest rate environment provides reassurance to existing and prospective investors, making it an attractive choice for long-term financial planning for the girl child.