Sukanya Samriddhi Yojana is a savings scheme launched by the Government of India in 2015 as a part of the Beti Bachao, Beti Padhao campaign.
The scheme aims to encourage parents to save money for the future education and marriage expenses of their girl child.
Under the scheme, parents or legal guardians can open a Sukanya Samriddhi account in the name of their girl child who is below 10 years of age.
The account can be opened with a minimum deposit of Rs. 250 and a maximum deposit of Rs. 1.5 lakh per annum.
The account will mature when the girl child turns 21 years old, and the savings can be withdrawn along with the interest accrued.
The scheme offers an attractive interest rate, which is currently 7.6% per annum (as of January 2022).
The interest rate is revised by the government every quarter, and the interest earned is compounded annually.
This means that the interest earned on the account is added to the principal amount, and the interest for the subsequent year is calculated on the total amount.
One of the key benefits of the Sukanya Samriddhi Yojana is that it offers tax benefits under Section 80C of the Income Tax Act.
The contributions made to the account, the interest earned, and the maturity amount are all tax-free.