Sukanya Samriddhi Yojana: A Decade of Financial Empowerment

Launched by Prime Minister Narendra Modi on January 22, 2015, the Sukanya Samriddhi Yojana (SSY) has successfully completed a decade of enhancing financial security for girl children in India. Since its inception, the scheme has gained significant traction, with over 4.2 crore accounts opened by November 2024. SSY allows guardians to contribute between ₹250 and ₹1.5 lakh annually in the name of a girl child, offering attractive interest rates and tax advantages.

Interest Rate Trends

The SSY interest rates, set quarterly by the Ministry of Finance, have fluctuated over the years:

Initial Rates (2015-2016)

The scheme started with an interest rate of 9.1%, which increased to 9.2% for the fiscal year 2015-2016.

Subsequent Adjustments (2016-2020)

The rates gradually declined from 8.6% in April 2016 to 8.1% by January 2018, with a brief rise to 8.5% in October 2018. Rates remained at 8.4% through 2019 and early 2020.

Stability and Recent Rates (2020-2025)

The interest rate was steady at 7.6% from April 2020 to September 2022. It increased to 8% in April 2023 and further to 8.2% in January 2024, where it currently stands.

Growth in Subscribers

The SSY has seen remarkable growth in both the number of accounts and total deposits:

• 2015: 4,20,420 accounts with ₹123 crore
• 2016: 69,98,870 accounts with ₹6,773 crore
• 2017: 1,00,84,152 accounts with ₹17,156 crore
• 2018: 1,24,28,910 accounts with ₹31,958 crore
• 2019: 1,55,34,417 accounts with ₹50,224 crore
• 2020: 1,92,49,624 accounts with ₹72,880 crore
• 2021: 2,32,67,968 accounts with ₹1,01,258 crore
• 2022: 2,93,74,765 accounts with ₹1,39,296 crore
• December 2022: 3,25,12,095 accounts with ₹1,62,154 crore

Eligibility and Account Management

• Account Opening: Guardians can open an SSY account for a girl child from birth up until she turns 10 years old. A maximum of two accounts can be opened per family, with exceptions for twins or triplets.
• Deposit Guidelines: Contributions can be made for up to 15 years from the date of account opening, with the account maturing 21 years later or upon the girl’s marriage after turning 18, whichever comes first. The account cannot be closed within one month before or three months after the marriage date.
• Interest Calculation: Interest is calculated monthly based on the lowest balance between the fifth day and the end of the month but is credited annually at the end of the financial year.

Tax Benefits and Withdrawals

Deposits into an SSY account are eligible for deductions under Section 80C of the Income Tax Act, 1961. Additionally, the interest earned is tax-free. Once the girl reaches 18 years of age, up to 50% of the account balance can be withdrawn to fund her higher education.

In Conclusion

The Sukanya Samriddhi Yojana has proven to be a successful initiative over the past decade, significantly enhancing financial security for girls in India. Despite fluctuations in interest rates, it has seen impressive growth in accounts and deposits.

Offering tax benefits and flexible withdrawal options, SSY continues to empower guardians in securing their daughters' futures, particularly supporting their higher education and marriage.