Financial Planning For Children: Secure Their Dreams Now

Financial planning for children is not just a responsibility; it’s an investment in their dreams and aspirations. In a world where education costs are skyrocketing and economic uncertainties loom, securing your child’s future has never been more critical. Whether it’s ensuring their education, safeguarding their health, or empowering them to achieve financial independence, financial planning for children is a cornerstone of parental care.

In India, schemes like the Sukanya Samriddhi Yojana (SSY) have revolutionized financial planning for children, particularly for girl children. Globally, countries like the USA, UK, and Canada offer tax-advantaged savings plans such as 529 plans and Junior ISAs to help parents build a financial safety net for their kids. These initiatives highlight the universal importance of financial planning for children, emphasizing the need to start early and plan wisely.

This article delves into the intricacies of financial planning for children, focusing on the Sukanya Samriddhi Yojana, comparing it with other child savings plans, and providing actionable insights to help you make informed decisions.

Introduction to Sukanya Samriddhi Yojana

What is Sukanya Samriddhi Yojana?

The Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme launched in 2015 as part of the Beti Bachao, Beti Padhao campaign. Designed exclusively for the welfare of girl children, SSY aims to promote financial planning for children by encouraging parents to save for their daughters’ education and marriage expenses.

Key Features of SSY

Eligibility: Parents or legal guardians can open an SSY account for a girl child below the age of 10.
Deposit Requirements: Minimum annual deposit of ₹250 and a maximum of ₹1.5 lakh.
Interest Rates: Currently offering an attractive interest rate of 8.2% (as of 2023), compounded annually.
Tax Benefits: Contributions are eligible for tax deductions under Section 80C, and the interest earned and maturity amount are tax-free.

Why SSY Stands Out

SSY is more than just a savings plan; it’s a tool for ensuring the financial stability of a girl child. With its high-interest rates, tax benefits, and government backing, SSY provides a secure and reliable way to build a financial safety net for your daughter’s future.

Comparison with Other Child Savings Plans

When it comes to financial planning for children, SSY is just one of many options. Let’s compare it with other popular child savings plans in India:

Public Provident Fund (PPF)

Pros: Long-term investment, tax-free returns, and government-backed security.
Cons: Lower interest rates compared to SSY and a longer lock-in period of 15 years.

National Savings Certificate (NSC)

Pros: Fixed returns and tax benefits under Section 80C.
Cons: Lower interest rates compared to SSY and limited flexibility.

Unit-Linked Insurance Plans (ULIPs)

Pros: Combines investment and insurance, offering potential high returns.
Cons: Market-linked risks and higher charges.

Child Mutual Fund SIPs

Pros: Flexibility, potential for high returns, and liquidity.
Cons: Subject to market volatility and lack of guaranteed returns.

Why SSY Wins

While each option has its merits, SSY stands out for its focus on financial protection for a girl child, offering higher interest rates, tax benefits, and a shorter maturity period.

Sample Calculations: Plan Your Savings

To help you visualize the power of financial planning for children, here’s a simple savings calculator for SSY:

Monthly Deposit	Interest Rate	Tenure (Years)	Maturity Amount
₹1,000	8.2%	15	₹3.5 lakh
₹5,000	8.2%	15	₹17.5 lakh
₹10,000	8.2%	15	₹35 lakh

Note: The above amounts are approximate and subject to change based on interest rate revisions. For more accurate calculations, we have given a calculator at the bottom of the page.

Conclusion and Call to Action

Financial planning for children is not just about saving money; it’s about securing their dreams and empowering them to achieve their full potential. The Sukanya Samriddhi Yojana is a powerful tool for ensuring the financial stability of a girl child, but it’s essential to explore all options and choose the one that aligns with your goals and risk appetite.

Start today. Open an SSY account, explore mutual funds, or consult a financial advisor to create a customized plan for your child’s future. Remember, every rupee you save today is a step toward securing their tomorrow.

By taking proactive steps in financial planning for children, you’re not just building wealth; you’re building a legacy of security, independence, and empowerment. Let’s work together to secure their dreams and create a brighter future for the next generation.

FAQ Sukanya Samriddhi Yojana (SSY)

1. What is Sukanya Samriddhi Account (SSA)?

Sukanya Samriddhi Account (SSA) is a Government-backed small deposit savings scheme for the benefit of a girl child.

2. How to open an account in SSA?

You cannot directly open a Sukanya Samriddhi Account (SSA) online through any authorized bank branches or post offices. However, you can pay installments in the SSA account through net banking. The process to open a Sukanya Samriddhi Account is offline and requires a visit to your nearest branch.
Follow the steps mentioned below to open a Sukanya Samriddhi Account in Post Office:

Step 1- Gather the required documents:
Sukanya Samriddhi Account (SSA) opening form (available at the post office)
Birth certificate of the girl child (proof of identity and name)
Photographs (applicant and girl child together)
KYC documents (ID proof, address proof) of the applicant (guardian)
Initial deposit amount (cash, cheque, or demand draft)

Step 2- Visit your nearest Post Office:
Complete the SSY account opening form.
Submit the filled form along with the required documents and initial deposit.

3. Who can open a SS Account?

A Sukanya Samriddhi (SS) Account can be opened by the guardian (either the mother or father) of a girl child.

Here are the key points:

The account can be opened for a girl child who is under the age of 10 years.

Only one account is allowed for each girl child.

The account must be opened by the parent/guardian in the name of the girl child.

4. What all documents are required to open SS Account?

To open a Sukanya Samriddhi Account (SS Account), the following documents are required:

Birth Certificate of the girl child (for whom the account is being opened)
Address proof of the guardian (e.g., Aadhaar card, passport, or utility bill)
Identity proof of the guardian (e.g., Aadhaar card, voter ID, passport, etc.)
Passport-size photograph of the guardian and the girl child

Note: The documents required may vary slightly depending on the bank or post office where the account is being opened.

5. Which type of birth certificate is required in SS Account?

For opening a Sukanya Samriddhi Account (SS Account), the following type of birth certificate is required:

The birth certificate should be issued by a government-authorized agency, such as the municipal corporation or the local government office.
The certificate must mention the full name of the girl child, date of birth, and the name of the parents/guardian.
In the absence of a birth certificate, a hospital discharge summary with the girl’s date of birth and other relevant details may also be accepted, depending on the bank or post office.

It is important that the birth certificate is official and duly attested by the appropriate authorities.

6. What is the minimum deposit required to open SSA?

The minimum deposit required to open a Sukanya Samriddhi Account (SSA) is Rs. 250.

This amount must be deposited at the time of account opening, and subsequent deposits can be made in multiples of Rs. 100. However, the total annual contribution should be at least Rs. 250 and a maximum of Rs. 1.5 lakh per year.

Note: If the minimum deposit of Rs. 250 is not made in a given financial year, the account may become inactive, and a penalty fee of Rs. 50 may be levied for reactivation.

7. What is the maximum deposit limit for SSA?

The maximum deposit limit for a Sukanya Samriddhi Account (SSA) is Rs. 1.5 lakh per year.

The account holder can deposit any amount up to this limit, and the total contributions can be made in a lump sum or through multiple deposits within the financial year. The deposits are eligible for tax deductions under Section 80C of the Income Tax Act.

It is important to note that the total amount deposited in the account must not exceed Rs. 1.5 lakh in a given year.

8. What is the interest rate for SSA?

The interest rate for the Sukanya Samriddhi Account (SSA) is currently 7.6% per annum (as of the latest update in March 2025). The interest is compounded quarterly.

This rate is subject to change by the government every quarter. The interest earned on the SSA is tax-free, and it is also eligible for tax deductions under Section 80C of the Income Tax Act.

Note: It is recommended to check with the official government website for the most up-to-date interest rates as they may vary periodically.

9. How is the interest on SSA calculated?

The interest on the Sukanya Samriddhi Account (SSA) is calculated on the balance in the account at the end of each quarter. The interest is compounded quarterly, meaning it is calculated and added to the account balance every three months.

Here’s how it works:

The balance in the SSA is calculated at the end of each quarter, and the applicable interest rate is applied to this balance.
Interest is compounded quarterly, so the interest earned in each quarter is added to the principal, and the next quarter’s interest is calculated on the new balance.
The interest is credited to the account at the end of each financial year (March 31st).

The interest rate is fixed by the government and is revised quarterly.To check the latest Interest rates check point no. 8.

10. What is the maturity period of SSA?

The maturity period of a Sukanya Samriddhi Account (SSA) is 21 years from the date of opening the account.

This means the account will mature 21 years after it is opened, regardless of the child’s age. After the completion of 21 years, the account balance, along with the accumulated interest, will be paid out to the account holder. The account can be transferred anywhere in India from one Post office/Bank to another.

If the girl child gets married before turning 21, the account can be closed early, and the maturity benefits will be provided accordingly.

11. Can I withdraw from SSA before the maturity period?

Yes, partial withdrawals can be made from the Sukanya Samriddhi Account (SSA) before the maturity period, but under certain conditions:

Partial withdrawals are allowed only after the girl child has turned 18 years old.
Withdrawals can be made for the higher education or marriage of the girl child.
The total amount that can be withdrawn is limited to a maximum of 50% of the balance at the end of the previous financial year.

Withdrawals are allowed for specific purposes, like higher education or marriage, and not for general expenses. The account continues to earn interest even after partial withdrawals, provided the minimum deposit requirement is met.

12. What is the penalty for non-payment of minimum deposit?

If the minimum deposit requirement of Rs. 250 is not made in a given financial year for the Sukanya Samriddhi Account (SSA), the account will become inactive, and a penalty will be levied to reactivate it.

The penalty for non-payment of the minimum deposit is Rs. 50 per year. This penalty needs to be paid along with the minimum deposit to reactivate the account.

Once the penalty and the required deposit are paid, the account will be reactivated, and it will continue to earn interest as usual, provided the minimum deposit is maintained in subsequent years.

13. Can the account be transferred from one post office to another?

Yes, the Sukanya Samriddhi Account (SSA) can be transferred from one post office to another, or from one bank to another, in case the account holder moves to a different location.

The transfer can be done between any authorized post office or designated bank that offers the Sukanya Samriddhi Scheme. The process involves submitting a request to the current post office or bank, along with the necessary documents, to initiate the transfer.

After the transfer, the account will continue to earn interest and the existing terms will remain unchanged. It is important to ensure that the new post office or bank is authorized to handle the SSA transfers and that all formalities are completed properly.

14. Can I close the SSA account before maturity?

Yes, you can close the Sukanya Samriddhi Account (SSA) before the maturity period, but only under certain circumstances:

The account can be closed before maturity if the girl child gets married after reaching the age of 18.
In the case of the girl’s death, the account will be closed, and the balance will be paid out to the legal heirs.

For other reasons, the account cannot be closed before the maturity period of 21 years. If the account is closed early, it will not earn the interest as per the terms of the scheme and may be subject to some penalties, depending on the bank or post office’s policy.

15. What happens if the account holder dies?

If the account holder (the girl child) dies before the maturity period of the Sukanya Samriddhi Account (SSA), the account will be closed immediately. In such a case, the balance in the account, along with the accumulated interest, will be paid to the legal heirs of the account holder.

The necessary documents, such as a death certificate, will be required to process the claim. Once the documents are submitted, the bank or post office will settle the account and transfer the funds to the rightful beneficiaries.

It is important to ensure that the account has been properly updated with the correct details and that the legal heirs have the proper documentation to claim the amount.

16. Can I add more than one nominee to the SSA?

Yes, you can add more than one nominee to the Sukanya Samriddhi Account (SSA).

When opening the account, you can nominate one or more individuals to receive the balance in the account in case of the account holder’s death. The nominee(s) will be entitled to claim the amount in the account, including the accumulated interest.

It is important to provide the details of the nominee(s) during the account opening process, and these details can be updated later as well. The nominee(s) should be chosen carefully, and the necessary documents, such as identity proof of the nominee(s), may be required when registering the nomination.

17. Is there any tax benefit with SSA?

Yes, the Sukanya Samriddhi Account (SSA) offers tax benefits under the Indian Income Tax Act.

Tax Deduction under Section 80C: The contributions made to the SSA are eligible for tax deduction under Section 80C of the Income Tax Act. This means you can claim a deduction of up to Rs. 1.5 lakh per year for the amount deposited in the account.
Tax-Free Interest: The interest earned on the SSA is completely tax-free. It is not subject to tax at any stage, including during accumulation and at the time of maturity.
Tax-Free Maturity Amount: The maturity proceeds, including the principal and interest, are also exempt from tax. This makes the SSA a tax-efficient investment option.

These tax benefits make the SSA a highly attractive option for saving for a girl’s future while also enjoying tax savings.

18. Is interest on SSA taxable?

No, the interest earned on the Sukanya Samriddhi Account (SSA) is not taxable.

The interest earned on the SSA is completely tax-free under Section 10(11) of the Income Tax Act. It is exempt from tax at all stages—during the accumulation period, at the time of interest accrual, and upon maturity.

This makes the SSA an attractive tax-efficient savings scheme for the long-term financial security of a girl child.

19. Can I make a joint account in SSA?

No, a Sukanya Samriddhi Account (SSA) cannot be a joint account.

The account can only be opened by the legal guardian (either the father or the mother) on behalf of the girl child. The girl child is the sole beneficiary of the account, and the guardian manages the account until the girl turns 18 years old.

While the account cannot be joint, the guardian has full rights to operate the account, make deposits, and manage the funds until the girl reaches adulthood.

20. Can a guardian open an SSA account on behalf of a minor girl?

Yes, a guardian can open a Sukanya Samriddhi Account (SSA) on behalf of a minor girl child.

The guardian, who can be either the father or mother of the girl, or in some cases, a legal guardian, is responsible for managing the account until the girl child turns 18 years old. The guardian can make deposits, operate the account, and handle the financial aspects until the girl reaches the age of majority.

Once the girl turns 18, she can independently manage the account and make decisions regarding the funds.

21. Can I continue depositing into SSA after the girl turns 18?

No, you cannot continue making deposits into the Sukanya Samriddhi Account (SSA) after the girl turns 18, unless the account is still within the 15-year contribution period.

The maximum contribution period for the SSA is 15 years from the date of opening the account. This means that while the girl can access the account after turning 18, no further deposits can be made once the 15-year period ends. However, the account will continue to earn interest until it matures (at 21 years of age).

Deposits should be made during the first 15 years of the account. After the 15-year period, you are not required to deposit any more money, but the account will continue to earn interest for another 6 years (until the girl turns 21), after which the account will mature and the funds can be withdrawn.

22. What if I forget my SSA account number?

If you forget your Sukanya Samriddhi Account (SSA) number, you can still retrieve it by following these steps:

Visit the bank or post office: Go to the bank or post office where the SSA account was opened. The bank or post office staff can assist you in retrieving the account number.
Provide identification: You will need to provide proof of identity (such as Aadhaar card, PAN card, or passport) and any other relevant details related to the account (like the name of the girl child, date of birth, etc.) to verify your identity.
Check account passbook or statements: If you have a passbook or receive account statements, the SSA number will be printed there. You can check those documents to find your account number.
Online banking (if applicable): If the SSA account is linked to online banking, you can log in to the banking portal or mobile app to check the account details and retrieve the account number.

If you’re unable to retrieve the account number through these methods, the bank or post office may help you with a formal process to regain access to the account.

23. How to make deposits in SSA?

Deposits into a Sukanya Samriddhi Account (SSA) can be made in the following ways:

At a Post Office: You can make deposits in cash, by cheque, or by demand draft at any post office offering the SSA scheme. The deposit can be made using the deposit slip, and you will receive a receipt for the same.
At a Bank: If the SSA account is linked to a bank, you can deposit money at the bank either through cash, cheque, or demand draft. You will be given a receipt after each deposit.
Online Deposits (if available): Some banks may allow online deposits through their banking platform. You can log in to your bank’s online account, select the Sukanya Samriddhi option, and make the payment online using a debit card, net banking, or other available methods.

Deposits must be made at least once a year, with a minimum deposit of Rs. 250. The maximum annual deposit limit is Rs. 1.5 lakh.

Deposits can be made in lump sum or through multiple installments, and they must be made before the end of the financial year (March 31st) to be eligible for tax benefits in that year.

24. Can I track the balance of my SSA account online?

Yes, you can track the balance of your Sukanya Samriddhi Account (SSA) online, but this depends on the bank or post office where your account is held.

For Bank Accounts: If your SSA account is held with a bank that offers online banking services, you can log in to your bank’s online portal or mobile app to check the balance, transaction history, and other account details.
For Post Office Accounts: The India Post also provides online services for checking the balance of your SSA account. You can visit the India Post website or use the India Post mobile app to check the balance and other details of your SSA account.
SMS Service (if available): Some banks and post offices offer an SMS service where you can check your account balance by sending a specific request to a designated number.

Make sure that your account is linked to online services (if available) and that you have registered for any necessary login credentials or mobile numbers to access online balance tracking.

25. Can I deposit in SSA through online transfer?

Yes, you can deposit in the Sukanya Samriddhi Account (SSA) through online transfer, but this depends on the bank or post office where your account is held.

For Bank Accounts: If your SSA account is linked to a bank that supports online banking, you can make deposits through net banking or mobile banking. You can transfer the money from your savings account to the SSA account online, and the transaction will be reflected in your SSA balance.
For Post Office Accounts: India Post allows online deposits for SSA through the India Post website and mobile app. You can deposit money using the available online payment options such as debit/credit cards or net banking.

Ensure that your bank or post office offers online deposit services for SSA and that you have linked your account appropriately to use this feature.

26. Can I open multiple SSA accounts?

No, you cannot open multiple Sukanya Samriddhi Accounts (SSA) for the same girl child.

According to the rules of the SSA scheme, only one account can be opened in the name of a girl child by the legal guardian (father or mother). The account can only be opened in one post office or one bank, and no individual can open more than one SSA for the same girl.

However, it is possible for each girl child to have one separate account opened by different legal guardians (father or mother), but they cannot open multiple accounts for the same girl child.

27. What happens if I miss an annual deposit?

If you miss an annual deposit in the Sukanya Samriddhi Account (SSA), the account will become inactive for that financial year. However, you can still reactivate the account by paying the minimum deposit along with a penalty.

The penalty for non-payment of the minimum deposit (Rs. 250) is Rs. 50 per year. You will need to pay this penalty, along with the missed deposit, to reactivate the account and continue earning interest.

It is important to ensure that the minimum annual deposit of Rs. 250 is made every year to keep the account active and maintain its benefits, including interest and tax exemptions.

28. Can I extend the maturity period of SSA?

No, the maturity period of the Sukanya Samriddhi Account (SSA) cannot be extended beyond 21 years from the date of account opening.

Once the account reaches its maturity period after 21 years, the balance, along with the accumulated interest, is paid out to the account holder. The account will be closed after the maturity period, and no further deposits or extensions are allowed.

However, the account continues to earn interest for up to 21 years, even if the deposits stop after the 15-year contribution period.

29. How is the final amount in SSA calculated?

The final amount in the Sukanya Samriddhi Account (SSA) is calculated based on the total deposits made over the years and the interest earned on those deposits. The key factors that determine the final amount are:

Deposits: You can deposit a minimum of Rs. 250 and a maximum of Rs. 1.5 lakh annually. The deposits can be made in lump sum or in multiple installments throughout the year.
Interest Rate: The interest rate on SSA is fixed by the government and is compounded quarterly. Currently, the rate is 7.6% per annum (as of March 2025), but it is subject to change each quarter.
Interest Calculation: The interest is compounded quarterly, which means the interest earned each quarter is added to the account balance, and future interest is calculated on the new, higher balance.
Maturity Amount: At the end of the 21-year maturity period, the total amount will be the sum of all the deposits made, plus the interest earned on those deposits over the entire period. The interest is tax-free.

The final maturity amount will depend on the total deposits made, the interest rate applicable over the years, and the number of years the deposits have been earning interest.

30. Can I transfer the SSA to another person?

No, the Sukanya Samriddhi Account (SSA) cannot be transferred to another person.

The account is specifically opened in the name of the girl child, and the legal guardian (father or mother) operates it until the girl turns 18. The SSA is intended for the specific girl child, and the account cannot be transferred to another individual.

However, you can transfer the SSA from one post office or bank to another, in case you move to a different location. This transfer is only for the same account holder (the girl child) and is done between authorized post offices or banks.

31. What happens if the account is not active for a long time?

If the Sukanya Samriddhi Account (SSA) is not active for a long time, which typically means the minimum deposit requirement of Rs. 250 is not met for a period of more than one financial year, the account will become inactive.

The account will be considered inactive if no deposit is made for a continuous period of one year or more. However, the account can still be reactivated by paying the missed deposit along with a penalty of Rs. 50 per year for each year the deposit was missed.

Once the penalty and the required deposit are paid, the account will be reactivated, and it will continue to earn interest as usual. The account holder can then continue making deposits as required and maintain the account.

If the account remains inactive for a prolonged period without any action, it may not earn interest for the missed years, but the balance will remain intact until reactivated or closed.

32. Can I add funds to the SSA after the girl turns 18?

No, you cannot continue adding funds to the Sukanya Samriddhi Account (SSA) after the girl turns 18, unless the 15-year contribution period has not ended.

The maximum deposit period for the SSA is 15 years from the date of opening the account. Once the 15-year period is over, you cannot make additional deposits, even if the girl turns 18 during that time. However, the account will continue to earn interest for another 6 years (until the girl turns 21), after which the account will mature and the balance can be withdrawn.

So, while the girl can independently manage the account after turning 18, the ability to add funds is limited to the first 15 years of the account’s life.

33. Can I change the nominee in the SSA account?

Yes, you can change the nominee in the Sukanya Samriddhi Account (SSA) at any time during the account’s tenure.

To change the nominee, you need to submit a written request at the post office or bank where the SSA is held. You will also need to provide the details of the new nominee, such as their name, address, and relationship to the account holder (the girl child).

Changing the nominee can be done by filling out a specific form available at the post office or bank. After processing, the new nominee details will be updated in the account records.

It is important to ensure that the nominee’s details are accurate and up to date, as they will be entitled to claim the account balance in the event of the account holder’s (girl child’s) death.

34. Is the SSA scheme available for NRI?

No, the Sukanya Samriddhi Account (SSA) scheme is not available for Non-Resident Indians (NRIs).

The SSA scheme is only available to Indian citizens. It can be opened by the legal guardian (father or mother) of a girl child who is an Indian citizen. The scheme is intended for Indian residents and can only be opened at Indian post offices or designated banks within India.

However, if the girl child is an NRI after the account is opened (for example, if the family moves abroad), the SSA can continue to earn interest, but no further deposits can be made. The account will remain active, and the accumulated interest will continue to be credited until the account reaches maturity (21 years). No new deposits can be made from outside India once the account holder becomes an NRI.

35. Can I get a loan against SSA?

No, you cannot get a loan against the Sukanya Samriddhi Account (SSA).

The SSA scheme does not allow any loan facility against the balance in the account. It is a long-term savings scheme intended for the future of a girl child, and the funds are meant to be withdrawn only after the maturity period of 21 years.

While you cannot borrow against the SSA, you can withdraw the funds under specific circumstances, such as for the girl’s higher education or marriage after she turns 18, but only according to the rules and conditions set by the scheme.

36. How do I close the SSA account?

To close a Sukanya Samriddhi Account (SSA), you need to follow the below steps:

Completion of Maturity Period: The SSA matures after 21 years from the date of opening. At this point, you can close the account and withdraw the full balance, including the principal and accumulated interest.
In Case of the Girl’s Death: If the girl child passes away before the account reaches maturity, the account will be closed, and the balance will be paid to the legal heirs upon submission of the death certificate and other required documents.
Before Maturity (Under Special Circumstances): The account can be closed before maturity in certain exceptional cases, such as the girl’s marriage after turning 18 or the girl’s death. In these cases, necessary documents like the marriage certificate or death certificate must be submitted along with a written request.

To close the account, visit the post office or bank where the SSA is held and submit a request to close the account along with the required documents. The account balance will be paid to the account holder or legal heirs after the verification process is complete.

37. How to apply for a tax exemption on SSA?

To apply for a tax exemption on the Sukanya Samriddhi Account (SSA), you don’t need to make a separate application. The tax exemption is automatically provided under the Indian Income Tax Act as part of the scheme’s benefits. Here’s how it works:

Tax Deduction under Section 80C: The deposits made to the SSA qualify for tax deduction under Section 80C of the Income Tax Act. You can claim a deduction of up to Rs. 1.5 lakh per year for the amount deposited in the account. This deduction will automatically reflect when filing your income tax return, provided you mention your SSA contributions.
Tax-Free Interest: The interest earned on the SSA is tax-free. You do not need to apply separately for this benefit, as the interest earned on the account is automatically exempt from tax under Section 10(11) of the Income Tax Act.
Tax-Free Maturity Amount: The maturity proceeds, which include the principal and interest, are also exempt from tax. This means that when the account matures, the final amount is fully tax-free.

To avail of these tax exemptions, make sure you provide the necessary information while filing your income tax return, such as details of the SSA account and contributions made during the financial year.

38. What are the key benefits of SSA?

The Sukanya Samriddhi Account (SSA) offers several key benefits, making it an attractive investment option for securing the future of a girl child. The main benefits of SSA are:

High-Interest Rate: The SSA offers one of the highest interest rates among small savings schemes in India. The interest is compounded quarterly, which helps in maximizing the returns.
Tax Benefits: Contributions to the SSA qualify for tax deductions under Section 80C of the Income Tax Act, up to a maximum of Rs. 1.5 lakh per financial year. The interest earned and the maturity amount are tax-free under Section 10(11).
Government-Backed Scheme: The SSA is backed by the Government of India, making it a secure and risk-free investment option for the long term.
Minimum Investment Requirement: The minimum annual deposit is just Rs. 250, making it accessible for many families. The maximum annual deposit limit is Rs. 1.5 lakh, which allows for flexible saving options.
Long-Term Investment: The SSA has a 21-year maturity period, ensuring that funds accumulate over a long time for the future education or marriage of the girl child.
Nominee Facility: You can name a nominee in the SSA, ensuring that in case of any unforeseen circumstances, the funds will be transferred to the nominee.
Partial Withdrawals Allowed: Partial withdrawals can be made after the girl turns 18, which can be used for her higher education or marriage expenses.

These benefits make the SSA an excellent choice for parents or guardians looking to secure the financial future of their daughter in a safe and tax-efficient manner.

39. How SSA is different from PPF?

The Sukanya Samriddhi Account (SSA) and Public Provident Fund (PPF) are both government-backed savings schemes, but they serve different purposes and have distinct features. Here’s how SSA differs from PPF:

Feature	Sukanya Samriddhi Account (SSA)	Public Provident Fund (PPF)
Target Audience	Designed specifically for the benefit of a girl child.	Available to all Indian residents, including minors, and can be opened by any individual.
Purpose	To secure the future of a girl child, specifically for her education and marriage.	For long-term savings and retirement planning.
Minimum Deposit	Rs. 250 per year.	Rs. 500 per year.
Maximum Deposit	Rs. 1.5 lakh per year.	Rs. 1.5 lakh per year.
Deposit Period	15 years from the date of account opening.	15 years, but contributions can be extended for another 5 years.
Interest Rate	Higher interest rate, currently 7.6% per annum (subject to change).	Interest rate is around 7.1% per annum (subject to change).
Tax Benefits	Tax deduction under Section 80C for deposits; Interest and maturity proceeds are tax-free.	Tax deduction under Section 80C for deposits; Interest is tax-free, and maturity proceeds are also tax-free.
Withdrawals	Partial withdrawal is allowed after the girl turns 18 for education or marriage purposes.	Partial withdrawals allowed after 6 years of account opening, for any purpose.
Account Maturity	21 years from the date of account opening.	15 years, with an option to extend in blocks of 5 years.

In summary, the SSA is specifically aimed at providing financial security for a girl child, whereas the PPF is a general long-term investment tool available to all individuals. Both offer tax benefits and attractive interest rates but differ in their target audience, purpose, and withdrawal conditions.

Sukanya Samriddhi Yojana Maturity Calculator

Enter Details to Calculate Maturity

Calculated Maturity Details

Total Amount Invested:
₹0
Total Interest Earned:
₹0
Total Maturity Value:
₹0

Year	Total Amount	Investment Amount	Interest Earned

Minimum Deposit: ₹250
Maximum Deposit: ₹1.5 lakh per financial year
Deposit Frequency: Deposits can be made in multiples of ₹50
Deposit Period: You can make deposits for a maximum of 15 years from the date of account opening.
Maturity: The account matures after 21 years from the date of opening, or can be closed earlier upon the girl child’s marriage (provided she is at least 18 years old).