Fixed Income

Fixed Income

Sukanya Samriddhi Account Compare

Summary
Quick DescriptionSafe and secure way to save money and earn interest via deposits in the Sukanya Samriddhi Account.
CategoryFixed Income
Returns *8.2%
Risk LevelVery Low
Liquidity18 years of age or 10th standard passing
Tax Implications
  • Capital Gain - Tax free.
  • Interest - Tax free.

Quick Description

Sukanya Samriddhi Account (SSA) is a government-backed savings scheme launched by the Indian government in 2015 as a part of the Beti Bachao, Beti Padhao campaign. The scheme aims to promote welfare of the girl child and encourage parents to save for their daughter's future education and marriage expenses.

In Sukanya Samriddhi Account Scheme, investors get interest payments on the amount that they invest. At maturity, investors get back their total invested amount and the accumulated compounded interest at maturity.

Additional Useful Information

  • A Sukanya Samriddhi Account can be opened in the name of the girl child (below the age of 10 years) by her parents or legal guardians.
  • The minimum amount required to invest in the Sukanya Samriddhi Account is ₹ 250 per month.
  • The maximum investment limit is ₹ 1,50,000 per financial year. These deposits can only be made up to 15 years of the start date.
  • Interest earned is credited to the account at the end of each financial year.
  • The interest earned in a Sukanya Samriddhi Account is compounded annually. This means that the interest earned in the previous year is added to the original principal amount, and the interest for the next year is calculated on the new amount (original principal + interest earned on that principal amount).
  • The maturity period for this scheme is 21 years.
  • Withdrawal of funds are permissible after the girl turns 18 years old or passes 10th standard.
  • The withdrawal amount permissible is up to 50% of the amount available in the account at the end of the preceding financial year.
  • Premature closure of account is possible only after 5 years of account opening based on certain extreme conditions such as the death of the guardian or account holder or due to life threatening diseases.
  • Sukanya Samriddhi Account is suitable for parents / guardians of a girl child who desire to build a capital base for their child or plan for her education and / or marriage.

Returns *

  • Sukanya Samriddhi Account Scheme guarantees returns.
  • The returns are fixed by the government and are subject to change every quarter.
  • Currently, interest at the rate of 8.2% per annum can be earned when investing in this scheme. 

Risk Level

  • Sukanya Samriddhi Account Scheme is a very low risk investment option as it is backed by the government of India.
  • This means that investments in a Public Provident Fund Account are safe and secure since the government can never default. 

Liquidity

  • Sukanya Samriddhi Account Scheme is not a liquid investment option since no withdrawal is allowed till the girl child reaches the age of 18 years or passes the 10th standard.
  • Withdrawals are capped at 50% of the account value and premature closure is possible only after 5 years under specific conditions only.

Interesting Facts

  • Sukanya Samriddhi Account Scheme can be availed for a maximum of 2 girls in the family.
  • After 21 years from the start date, the account can be closed. The account can also be closed if the girl gets married after 18 years of age, but no closure is allowed before 1 month or after 3 months from the date of marriage.

Tax Implications

  • Interest earned in a Sukanya Samriddhi Account Scheme is tax – free.
  • Investors investing in the Sukanya Samriddhi Account Scheme can claim a deduction of up to Rs. 1.5 lakhs from their taxable income and thereby save tax, under Section 80C of the Income Tax Act.

Where To Invest

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