Sukanya Samriddhi Yojana
Also written Sukanya Samrudhi Yojana · SSY · Sukanya Samrudhi Deposit · Sukanya Samriddhi Account · SSA
A Government savings scheme for a girl child, opened by a guardian when she is 10 or younger. Deposits qualify under Section 80C; partial withdrawal for education or marriage is allowed after 18.
In plain language
Sukanya Samriddhi Yojana is a savings account a parent opens for a daughter, to build money for her higher education and marriage.
Its stated objective is simple: to promote the welfare of the girl child. It is run by the Government of India, deposits get an income tax deduction under Section 80C, and the rules on withdrawal keep the money set aside until she is grown up.
(The booklet spells it "Samrudhi"; you will see both spellings.)
How it works
From the booklet (Chapter 9):
| Feature | Rule |
|---|---|
| Objective | Promote the welfare of the girl child |
| Who opens it | A natural or legal guardian, for a girl child aged 10 or less |
| How many accounts | Up to two girl children; three if twin girls are born at the second birth, or if the first birth itself results in three girl children |
| Tax | Deduction as applicable under Section 80C of the Income Tax Act, 1961 |
| Premature closure | On death of the depositor, or on compassionate grounds such as medical support in life-threatening diseases, authorised by an order of the Central Government |
| Missed payments | Account revived by paying a penalty |
| Mode of deposit | Cash, cheque, demand draft or digital payment |
| Withdrawal | A certain portion of the balance at the end of the previous financial year, for higher education and marriage, after she turns 18 |
The booklet does not print the interest rate, deposit limits or the account term. Those are notified by the Government from time to time.
A worked example
Deposit amounts are illustrative.
Can they open accounts?
- The Kulkarnis in Kolhapur have a daughter aged 7. She is 10 or younger, so a guardian can open an account. Yes.
- Their second child is twin girls, now aged 2. The rule allows three accounts when twin girls come at the second birth. So all three daughters can have accounts.
- Their neighbours have a daughter who turned 11 last month. She is above 10. No account can be opened for her.
Saving: the Kulkarnis put Rs 5,000 a month into the elder daughter's account, Rs 60,000 a year, and claim it under Section 80C along with their other eligible investments.
Missed months: in a bad year they miss several deposits. The account is not lost; they revive it by paying the penalty.
Withdrawal: when the elder daughter is 18 and joins an engineering college, they withdraw a portion of the balance as it stood at the end of the previous financial year for her fees. The rest stays invested.
Why NISM asks about it
Chapter 9 (Government Schemes for Various Savings and Investment Options) lists the scheme's features, and Chapter 10 (Tax Saving Options) connects it to Section 80C. The favourite questions are the age limit (10 or less), the number of accounts (two, or three with twins at the second birth or triplets at the first) and the withdrawal condition (after 18, for education and marriage).
Common exam traps
- Age: 10 or less when the account is opened.
- Two accounts normally; three only for twins at the second birth or three girls at the first birth.
- Premature closure needs death of the depositor or compassionate grounds with a Central Government order. Not simply a parent's wish.
- Withdrawal is partial, after 18, for higher education and marriage, based on the balance at the end of the previous financial year.
- Irregular payment is revived by penalty; the account does not lapse permanently.
- Tax benefit under Section 80C, not 80D or 80TTA.
Check yourself
1.Under Sukanya Samriddhi Yojana, what is the maximum age of the girl child at the time of opening the account?
- a)5 years or less
- b)10 years or less
- c)14 years or less
- d)18 years or less
Show the answer
Answer: (b) 10 years or less
"Who can open the account: A NATURAL OR LEGAL GUARDIAN on behalf of a girl child where CHILD'S AGE IS 10 OR LESS." The age limit applies at opening, which is the detail candidates misread — a seven-year-old qualifies, an eleven-year-old does not, and the scheme then runs for many years afterwards. Do not confuse it with the withdrawal rule, which is a different age: "A certain portion of the balance lying in the account as at the end of previous financial year for the purpose of HIGHER EDUCATION AND MARRIAGE AFTER ATTAINING THE AGE OF 18 YEARS." The scheme's objective is "to promote the WELFARE OF THE GIRL CHILD", deposits attract Section 80C relief, and money may be paid in by cash, cheque, demand draft or digital payment.
Where this is taught
Free preparation for NISM Series SEBI-ICERelated terms
- Public Provident FundA 15-year government-guaranteed savings account for individuals, at a rate reset quarterly, where the contribution, the interest and the maturity value are all outside tax under the old regime.
- Kisan Vikas PatraA government-guaranteed post office certificate that doubles the amount invested over a fixed term — 124 months in the workbook — with no tax incentive and interest taxed on accrual.
- National Savings CertificateA 5-year, government-guaranteed post office certificate with annual compounding paid at maturity, a Rs 1,000 minimum, no maximum, and an old-regime deduction on the investment.
- Financial planningThe process of estimating what a person will need money for across their lifetime and building an investment plan to meet each of those needs — savings with a purpose attached.
- Section 80CThe income-tax deduction for money put into life insurance, provident fund, ELSS, five-year bank deposits, NPS Tier 1, NSC and home-loan principal, capped in aggregate at Rs 1,50,000 a year.
- Mahila Samman Savings CertificateA two-year small savings certificate for women and girls at 7.5 percent compounded quarterly, capped at Rs 2 lakh, whose enrolment window ran from April 2023 and closed on 31 March 2025.