Sukanya Samriddhi Yojana (SSY): Income tax benefits for parents, interest rate 2023, age limit

The Sukanya Samriddhi Yojana is a small savings scheme offered by the post office. The government-backed scheme provides a chance for parents to open a savings account in the name of their daughter. The Sukanya Samriddhi Yojana is valid all over India and can be opened at any post office in the country. The plan allows parents to secure the finances of their daughter and ensure there are savings in her name when she reaches the age of maturity.

Here is everything you need to know about the Sukanya Samriddhi Yojana, including the tax benefits for parents, age limit, interest rate and more.

Sukanya Samriddhi Yojana minimum amount

Depositors need to invest at least Rs 250 in a financial year. The maximum amount is Rs 1.5 lakh. Deposits can be made in lump-sum as well. There is no limit on the number of deposits in a month or year. The money can be deposited up to completion of 15 years from the date of opening of account.

Sukanya Samriddhi Yojana interest rate

Under the Sukanya Samriddhi Yojana, the interest rate is 8 per cent per annum, with effect from July 1 this year. The interest is calculated on yearly basis and it is compounded annually.

Sukanya Samriddhi Yojana age limit

Guardians can open an account in the name of a girl child below the age of 10 years. The account can be opened for a maximum of two girls in the family. In case of twins/triplets, more than two accounts can be opened. The account can be operated by the guardian until the girl reaches the age of 18 years.

The Sukanya Samriddhi Yojana account can be closed 21 years later from the date of account opening or at the time of the girl’s marriage after she reaches 18 years.

Sukanya Samriddhi Yojana: Income tax benefits for parents

Deposits under the Sukanya Samriddhi Yojana qualify for deduction under Section 80C of Income Tax Act. The interest earned is tax free.

Sukanya Samriddhi Yojana: Withdrawal

Money can be withdrawn after a girl child reaches 18 or has passed 10th grade. Up to 50 per cent of the balance available at the end of the preceding financial year may be withdrawn. The money can be taken in instalments or lump sum, not exceeding one per year, for no longer than five years, subject to requirements.

Sukanya Samriddhi Yojana: Premature closure

The account can be closed prematurely after 5 years of account opening in case of the account holder’s death or compassionate grounds like demise of the guardian who operated the account, or a life threatening disease of the account holder.