There is a big update in Sukanya Samriddhi Yojana. Recently Sukanya Samriddhi Yojana (SSY) has completed 10 years. This program is designed for the future of daughters, offering tax exemptions and guaranteed returns, along with a government assurance that makes this investment secure. As of November 2024, over 4.1 crore Sukanya Samriddhi accounts have been established.

 

Launched in 2015 as part of the ‘Beti Bachao, Beti Padhao’ initiative, it helps cover the costs of education and marriage for daughters. Parents or legal guardians can open an account in their daughter’s name at a bank or post office, making it one of the government’s favored small savings schemes.

 

The Sukanya Samriddhi Yojana is intended for daughters aged 10 years or younger. Each year, a minimum deposit of 250 rupees and a maximum of 1.5 lakh rupees can be made. Once the account is opened, deposits can be made for 15 years, and the funds are locked in for 21 years, meaning withdrawals are only permitted after this period. If the daughter marries before reaching 21, the account will be closed, and no further transactions can occur post-marriage.

 

Despite some fluctuations, the Sukanya Samriddhi Yojana offers higher interest rates than fixed deposits. Over the past decade, it has provided better returns than many other savings options, with interest rates exceeding 8% in seven of the first ten years. The Finance Ministry evaluates the interest rate every three months, and for the January to March quarter, it stands at 8.2%.

 

When the scheme was introduced in 2015, the interest rate was 9.1%, which was later raised to 9.2% in April of the same year. However, as market interest rates declined in 2016, the rate for Sukanya Samriddhi Yojana also fell, reaching a low of 7.6% from April 2020 to September 2022. As of January 2024, the interest rate for SSY accounts is now 8.2%.

 

How is the calculation performed?

Imagine your daughter is 5 years old. Starting in 2025, you plan to deposit Rs 20,000 each year. With an interest rate of 8.2%, you will continue this for 15 years. After 21 years, your daughter will receive approximately Rs 9,23,677, which includes Rs 6,23,677 earned in interest. Over the 15 years, you will have contributed a total of Rs 3,00,000. Thus, by saving Rs 20,000 annually, you will accumulate Rs 9,23,677 after 21 years, with Rs 6,23,677 coming from interest.

 

It’s important to note that if you fail to deposit at least Rs 250 each year, the account will go into default. To reactivate a defaulted account, you must deposit Rs 250, along with an extra Rs 50 for each year it was in default. All of this must be completed within 15 years of opening the account.

 

According to a circular from the Department of Posts dated August 21, 2024, if the account is opened by grandparents who are not the legal guardians, it will be transferred to the rightful owner, which can be the parents (if they are alive) or the legal guardians.

 

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