The Sukanya Samriddhi Yojana (SSY) is one of the most popular small savings schemes in India. The scheme allows parents of the girl child to save for their education and marriage by earning tax-free returns. The scheme is backed by the Government of India under the Beti Bachao, Beti Padhao initiative, offering a sovereign guarantee. The scheme offers attractive returns and tax benefits, making it a preferred choice for long-term savings among parents of girl child.The government reviews the interest rates of small savings schemes, including Sukanya Samriddhi Yojana, every quarter.
Was the interest rate of Sukanya Samriddhi Yojana changed for April-June 2025 quarter?
The government has not changed the interest rate on the Sukanya Samriddhi Yojana. The scheme will continue to offer 8.2% per annum for the April–June 2025 quarter, one of the highest among the post office savings schemes. It is important to note that the government has not changed the interest rate for any small savings scheme for the current quarter.
Maximum and minimum deposit in SSY account
Under the Sukanya Samriddhi Yojana (SSY), deposits are governed by specific rules. This is done to encourage regular savings for the parents while maintaining flexibility for contributors. The account can be opened with a minimum initial deposit of Rs 250, making it accessible for most families. In every financial year, a minimum deposit of Rs 250 must be made to keep the account active, while the maximum deposit allowed is Rs 1.5 lakh. Contributions can be made in one lump sum or through monthly instalments in multiples of ?50, allowing depositors to save according to their convenience.
Interest earned and maturity from SSY account
The interest on the SSY deposits is compounded annually and is tax-free. The maturity amount is also tax-free.
Partial Withdrawal from SSY for education (After 18 Years)
Sukanya Samriddhi Yojana (SSY) account allows for partial withdrawals after the girl child reaches the age of eighteen or completes the tenth grade, whichever comes first. This withdrawal is mostly intended to pay for educational expenditures like tuition, fees associated with the course, or other verifiable expenses.
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The withdrawal amount can be up to 50% of the balance available at the end of the preceding financial year. This withdrawal can either be made as a one-time lump sum or in instalments, with a maximum of one instalment allowed per year over a period not exceeding five years. However, the withdrawal should not exceed the specified ceiling and must be aligned with the educational institution’s actual requirements.
Premature closure of the SSY account
Premature closure of the SSY account is permitted under specific and exceptional circumstances. However, the account can be closed after five years of account opening. The primary grounds for such closure include the death of the account holder (the girl child). The deposits in the SSY account will accrue interest at the Post Office Savings Account interest rate from the date of death until the final payment date in this scenario. Other reasons for closure of the account, such as compassionate grounds, and legitimate justification for an early closure, including the account holder’s life-threatening illness or the passing of the guardian managing the account.Closure of the Sukanya Samriddhi account on maturity
The Sukanya Samriddhi Account matures 21 years after the date of opening. At this time, the account can be closed, and the full balance, including interest, will be received. Alternatively, the account can be closed after the girl marries, as long as she is at least 18 years old.
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