Sukanya Samriddhi Yojana: Investment for Your Girl's Bright Future

24 Aug 2022

Back to all Articles

As per an age-old saying, educating the girl child results in the progress of the country. Despite this, there are several sections in the society where the girl child is considered a burden and denied equal opportunities. To change this narrative and provide girls with equal standing, the Government of India introduced the Sukanya Samridhhi Yojana scheme. Let us understand how this scheme is the ideal investment for your daughter's bright future.

What is the Sukanya Samriddhi Yojana?

The Sukanaya Samriddhi Yojana is a savings-cum-investment scheme designed to encourage parents to invest money for their daughters. It aims to better the stature of the girl child in Indian society. The Government Launched the Sukanaya Samriddhi Yojana scheme in 2015 under the 'Beti Bachao Beti Padhao' campaign to improve the prospects available to the girl child and inspire parents to save money for their daughter's education and, later, marriage.

Sukanya Samriddhi Yojana Benefits for the Girl Child

The Sukanya Samriddhi Yojana goes a long way in ensuring your girl child gets equal access to education and other life opportunities. It is geared toward ensuring her financial security and giving her control and independence over her finances. The idea behind the scheme is to provide the girl with financial autonomy so that she does not have to rely on her spouse or other male members in her family for money.

The 21-year maturity period from the date of the account opening of the scheme allows parents to gradually build a corpus for their daughters' future from the time of their birth. The girl can use the funds accumulated in the account to pay for her higher education, marriage, and other expenses as required from time to time.

Is Investing in Sukanya Yojana Enough for Education Expenses?

As a daughter's parent, you can deposit anywhere from Rs 250 to Rs 150,000 and earn a comparatively higher interest rate on the deposits. Assuming you deposit Rs 100,000 for 15 years, you can create a lump sum of 15 Lakhs from principal investment alone. Additionally, the scheme comes with compounding benefits which means you can earn returns on returns. It thus allows you to create a generous lumpsum that accrues inflation-adjusted returns and sufficient funds to pay for your daughter's education and marriage.

Moreover, the scheme falls under Section 80C of the Income Tax Act, 1969 and qualifies for the Exempt Exempt Exempt or EEE status. The funds deposited, interest earned, and the maturity amount are entirely tax-free. These Sukanya Samriddhi Yojana scheme details demonstrate that investing in the scheme may be sufficient to pay for your daughter's education expenses, so long as you continue investing in it diligently.

Reasons to Invest in the Sukanya Samriddhi Yojana

There are various Sukanya Samriddhi Yojana benefits that make it a worthwhile investment. They are as under:

  • You can begin the investment with a small sum of only Rs. 250.
  • SSY is one of the highest interest-earning schemes in India, and the Government revises the interest rate every quarter.
  • The scheme reduces the burden of coming up with a significant sum of money to pay for your daughter's education as it allows gradual investments.
  • The investment duration of the scheme is only 15 years, while interest is paid on deposits for up to 21 years from the date of account opening when the account matures.
  • You can open separate, individual accounts for up to two girls from the same family, with the exception of twins/triplets born from subsequent pregnancies.
  • As the investor, you can enjoy tax deduction benefits of up to Rs 150,000 per annum, and you don't need to pay taxes on the interest income or the maturity amount.
  • As a long-term investment scheme, the Sukanya Samriddhi Yojana scheme provides compounding benefits and opportunities for lumpsum corpus creation.
  • The girl serves as the primary account holder, and the parent/guardian may only operate the account on her behalf till she turns 18.
  • Partial withdrawals of up to 50% are permitted after the girl turns 18 years old, or completes her 10th standard education, whichever is earlier.

How to Invest in Sukanya Samriddhi Yojana?

You need to open a dedicated Sukanya Samriddhi account to invest in the scheme. You can open the account by visiting nearest Bank of Baroda Branch. You must fill the form and submit it with the necessary documents – the child's birth certificate, photographs of the child and the parent/guardian, and the ID and address proof documents of the parent/guardian. You must deposit a minimum of Rs 250 at the time of account opening, after which you can make deposits via cheque, cash, demand drafts, and online transfers.

Popular Articles

Related Articles

  • Disclaimer

    The contents of this article/infographic/picture/video are meant solely for information purposes and do not necessarily reflect the views of Bank of Baroda. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Bank of Baroda and/ or its Affiliates and its subsidiaries make no representation as to the accuracy; completeness or reliability of any information contained herein or otherwise provided and hereby disclaim any liability with regard to the same. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Bank of Baroda or its affiliates to any licensing or registration requirements. Bank of Baroda shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

Leave a Comment

Thanks for submitting your details.

Kisan Vikas Patra (KVP) – All You Need To Know

Launched in 1988 by India Post, Kisan Vikas Patra is a savings certificate scheme to encourage small savings for securing the people’s future. As the name suggests it was designed to assist farmers who lacked access to traditional banking systems but there is no distinction made between investors.

7 Best Investment Options in 2022

Investments allow you to draw a roadmap towards achieving your financial goals. They can help you build a corpus of funds for the future. With the COVID 19 pandemic, making investments that secure your future has become more important than ever.

Add this website to home screen

Are you Bank of Baroda Customer?

This is to inform you that by clicking on continue, you will be leaving our website and entering the website/Microsite operated by Insurance tie up partner. This link is provided on our Bank’s website for customer convenience and Bank of Baroda does not own or control of this website, and is not responsible for its contents. The Website/Microsite is fully owned & Maintained by Insurance tie up partner.

The use of any of the Insurance’s tie up partners website is subject to the terms of use and other terms and guidelines, if any, contained within tie up partners website.

Proceed to the website

Thank you for visiting

We use cookies (and similar tools) to enhance your experience on our website. To learn more on our cookie policy, Privacy Policy and Terms & Conditions please click here. By continuing to browse this website, you consent to our use of cookies and agree to the Privacy Policy and Terms & Conditions.