Financial Planning for Girl Child: Understanding Sukanya Samriddhi Yojana Scheme

The Sukanya Samriddhi Yojana empowers parents or guardians to begin saving for the future of the girl child, namely her education and marriage.

The concept of Financial Planning for the Girl Child in India carries significant weight, mostly due to societal and economic disparities. It is crucial to empower girls by ensuring their financial stability and independence from a young age. One such scheme aimed at strengthening the financial backbone of the Indian girl child is the Sukanya Samriddhi Yojana (SSY).

The Sukanya Samriddhi Yojana empowers parents or guardians to begin saving for the future of the girl child, namely her education and marriage. Introduced by the Government of India as part of the ‘Beti Bachao, Beti Padhao’ campaign, the scheme has been offering impressive benefits over time.

Structure of Sukanya Samriddhi Yojana

SSY, a small deposit scheme, accepts deposits from parents or legal guardians of a girl child until she turns ten years old. Currently, the Sukanya Samriddhi Yojana offers an impressive annual interest rate of 7.6% compounded annually, which is amongst the highest compared to other small savings schemes. The maximum amount that can be deposited in a single financial year is ₹1.5 lakh, and the minimum deposit amount required is ₹250.

Advantages of Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana is tax-exempt under section 80C of the Income Tax Act, and interest earned is also tax-free. Besides, the matured amount withdrawn by the girl upon reaching 21 years of age will also be completely non-taxable.

How Does the Sukanya Samriddhi Yojana Work?

The account under this scheme matures after 21 years from the date of opening, or till the girl’s marriage after she turns 18. An account holder can operate more than one account in the name of two separate children. However, the combined deposit in these accounts cannot exceed ₹1.5 lakh in a financial year.

Partial withdrawal of up to 50% of the balance is permitted after the child turns 18 to cater to the education expenditure. However, if the account isn’t closed, it continues to earn the applicable interest.

Understanding the Returns of Sukanya Samriddhi Yojana

The power of compounding is the key to earning substantial returns from the Sukanya Samriddhi Yojana. Let’s consider an example – if you invest ₹1.5 Lakhs every year for 15 years, the total invested amount will be ₹22,50,000. With an annual interest rate of 7.6%, the maturity value at the end of the 21st year will be approximately ₹69,73,042.

However, it’s crucial that investors gauge the pros and cons of such a long-term investment, given the fluctuating market interests and future financial requirements.

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The information provided is for informational purposes only and should not be construed as financial or tax advice. It’s recommended to consult with a qualified professional or conduct thorough research before making any financial decisions. Also, note that the assumptions made and the values used in the examples and calculations are subject to change based on government notifications.


The Sukanya Samriddhi Yojana is a government-sponsored savings scheme designed for the girl child’s future financial needs. It offers a high interest rate, tax benefits, and reasonable deposit limits. However, it’s important to understand the operation mode, benefits, returns, and terms of the scheme before investing in it. Using a Sukanya Samriddhi Yojana calculator can help you estimate the returns and better plan your investments. Remember that the investments should align well with your financial goals, and it’s advisable to evaluate other available options for optimizing returns. Lastly, always be aware of the market trends and consider the future requirements before making such a long-term financial commitment.

Image by Peggy und Marco Lachmann-Anke from Pixabay


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