Every parent wishes to secure a stable and comfortable future for their children. Many parents are particularly concerned about ensuring that their daughters do not face financial difficulties when it comes to crucial milestones such as education or marriage. For such families, there is a highly beneficial savings option offered by the central government, officially known as the Sukanya Samriddhi Yojana. Let’s take a closer look at this scheme for more details.
What Is Sukanya Samriddhi Yojana? Sukanya Samriddhi Yojana is a government-backed savings scheme introduced by the central government in 2015 for girls below the age of 18. The scheme is designed to help parents or legal guardians build a financial corpus for their daughter’s education and marriage. An account can be opened in the girl’s name at any time from birth until she turns 10. It is regarded as one of the safest and most rewarding long-term savings schemes provided by the government.
What Is The Interest Rate? Under this scheme, parents can invest small amounts regularly in their daughter’s name and accumulate a substantial sum over a period of 21 years. The interest rate offered is higher than that of most bank fixed deposits. In addition, the returns from this scheme are completely tax-free, making it even more attractive for long-term savings.
How Much Can You Deposit? This Savings Scheme currently offers an annual interest rate of 8.2%, which is applicable until March 2026. This rate is reviewed by the government every quarter and may be revised thereafter. An account can be opened with a minimum deposit of Rs 250. The maximum amount that can be deposited in a financial year is Rs 1.5 lakh, which can be paid either as a lump sum or in instalments.
By saving Rs 12,500 per month, parents can invest the full Rs 1.5 lakh in a year. If investments begin when the girl is five years old, the savings can grow significantly over time. Contributions are required for only 15 years, while the account matures when the girl turns 21. At maturity, the total investment of Rs 22.5 lakh over 15 years can grow to approximately Rs 72 lakh. This includes interest earnings of around Rs 49 lakh or more. In total, after 21 years, the maturity amount can reach approximately Rs 7,182,119.
It is important to note that deposits are required only for the first 15 years from the date the account is opened. After this period, no further deposits are needed, but the accumulated amount continues to earn interest until maturity. Once the contribution period ends, the balance grows passively until the girl child reaches 21 years of age.
However, while this maturity amount may appear substantial, inflation can significantly reduce its real value over time. If inflation averages between 5-6% annually, Rs 71 lakh after 21 years would be equivalent to only about Rs 22 to 28 lakh in today’s terms. This highlights the importance of factoring in rising education costs and living expenses while planning long-term financial security for children.
