The government has not revised interest rates on small savings schemes for January 2025 March 2025, including Sukanya Samriddhi Yojana (SSY). The Sukanya Samriddhi scheme aims to motivate parents to make contributions for their daughters’ future. This will guarantee that the girl is not viewed as a burden and has financial freedom. To make it attractive for parents, the scheme offers high interest rates and tax benefits.
“The rate of interest on various Small Savings Schemes for the fourth quarter of FY 2024-25 starting from 1st January, 2025 and ending on 31st March, 2025 shall remain unchanged from those notified for the third quarter (1st October, 2024 to 31st December, 2024) of FY 2024-25,” said the Department of Economic Affairs, Finance Ministry in a press release dated December 31, 2024.
What is Sukanya Samriddhi Yojana?
Sukanya Samriddhi Yojana is a government-backed scheme specially designed for a girl child. It was launched in 2015 as part of the Beti Bachao, Beti Padhao campaign. It can be opened by the parents or legal guardians of the girl child.
Sukanya Samriddhi Yojana interest rates 2025
The interest rate for January to March 2025 is 8.2???% per annum, calculated on a yearly basis, and compounded. Sukanya Samriddhi scheme offers a high-interest rate. This is the highest among all small savings schemes.
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Tax benefits of SSY
With a sovereign guarantee and the exempt-exempt-exempt (EEE) status, SSY offers a significant tax-free return. The annual contribution (contributions) is eligible for deduction under Section 80C, and the maturity benefits are tax-free. Note that the maximum investment limit is Rs 1,50,000.
Documents required to open SSY account
The following documents are required to open a Sukanya Samriddhi Yojana account:
SSY account opening form
Birth certificate of the girl child, having the child’s name on it
Photograph of the parent/ legal guardian of the girl child
KYC documents (Identity & Address Proof) of the parent/ guardian.
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Sukanya Samriddhi account details
A minimum amount of Rs. 250 can be invested in a single fiscal year; a maximum amount of Rs. 1,50,000 can be invested in a single fiscal year; and a penalty of Rs. 50 will be assessed if the minimum of Rs. 250 is not deposited in any fiscal year.
According to the India Post website, “If minimum deposit Rs. 250 is not deposited in an account in a FY , the account shall be treated as a defaulted account. Defaulted account can be revived before completion of 15 years from the date of opening of account by paying minimum Rs. 250 + Rs. 50 default for each defaulted year. You can make deposits into an account up to 14 years from the account’s opening date.”
Sukanya Samriddhi lock-in period
According to the HDFC Bank website, “The account has a maturity period of 21 years from the date of opening or the marriage of the child, whichever is earlier. The account will be terminated after the marriage of the child. Meanwhile, only one premature withdrawal is permitted on attaining the age of 18, to fund the higher education of the child. This amount is restricted to 50% of the balance at the end of the year. Deposits in the account can be made up to 14 years from the date of opening the account.”
