Sukanya Samriddhi Yojana Explained: How Parents Can Build a ₹47 Lakh Fund for Their Daughter

The Sukanya Samriddhi Yojana (SSY) has emerged as one of the most trusted and popular savings schemes launched by the Government of India for securing the future of the girl child. Designed specifically to support long-term financial planning for daughters, the scheme helps parents build a substantial fund for higher education and marriage, while offering safety, attractive interest rates, and complete tax benefits.

If parents start investing in Sukanya Samriddhi Yojana soon after their daughter’s birth, it is possible to accumulate a corpus of around ₹47 lakh by the time the account matures. The scheme’s disciplined structure, long investment horizon, and power of compounding make it a powerful wealth-building tool for middle-class families.

What Is Sukanya Samriddhi Yojana?

Sukanya Samriddhi Yojana is a government-backed small savings scheme under the “Beti Bachao, Beti Padhao” initiative. It allows parents or legal guardians to open a savings account in the name of a girl child and make regular contributions for a fixed period.

The primary objective of the scheme is to encourage parents to save for their daughter’s future needs while ensuring financial security and independence for girls.

An SSY account can be opened for a girl child below 10 years of age, and the investment is completely safe as it is backed by the Government of India.

Investment Limits and Account Duration

Under Sukanya Samriddhi Yojana, parents can deposit:

• Minimum investment: ₹250 per year

• Maximum investment: ₹1.50 lakh per year

Contributions must be made for 15 years from the date of account opening. However, the account continues to earn interest until maturity, which occurs 21 years after opening or at the time of the girl’s marriage after the age of 18, subject to rules.

Even after stopping deposits at the end of 15 years, the accumulated balance continues to grow due to compounding interest for the remaining 6 years.

How Can the Fund Grow to ₹47 Lakh?

The biggest strength of Sukanya Samriddhi Yojana lies in its long-term compounding and competitive interest rate, which is generally higher than most other small savings schemes. The interest rate is revised periodically by the government and remains tax-free.

If parents invest the maximum amount of ₹1.50 lakh every year for 15 years, the total investment would be ₹22.50 lakh. Assuming the interest rate remains around the current levels over the long term, the investment can grow significantly.

By the time the account matures after 21 years, the total corpus can reach approximately ₹45–47 lakh, depending on the prevailing interest rates over the years. This amount can comfortably support expenses related to higher education, professional courses, or marriage.

Tax Benefits Make SSY More Attractive

One of the biggest advantages of Sukanya Samriddhi Yojana is its EEE (Exempt-Exempt-Exempt) tax status, which very few investment instruments offer.

• Contributions are eligible for tax deduction under Section 80C of the Income Tax Act (up to ₹1.50 lakh per year).

• Interest earned on the account is completely tax-free.

• The maturity amount is also fully exempt from tax.

This makes SSY far more tax-efficient compared to many other long-term investment options.

Partial Withdrawal and Flexibility

The scheme also offers limited flexibility. Once the girl child attains the age of 18 years, up to 50% of the account balance can be withdrawn for higher education or other approved purposes. This ensures that funds are available when major educational expenses arise.

The remaining amount continues to earn interest until final maturity.

Why Sukanya Samriddhi Yojana Is Ideal for Parents

Sukanya Samriddhi Yojana stands out because it combines security, high returns, long-term discipline, and tax efficiency. Since the scheme is backed by the government, there is no market risk, making it suitable even for conservative investors.

For parents who want a guaranteed, stress-free way to build a large corpus for their daughter, SSY offers peace of mind along with financial growth.

Final Takeaway

Sukanya Samriddhi Yojana is not just a savings plan—it is a long-term financial commitment toward a daughter’s dreams and independence. Starting early and investing consistently can help parents create a ₹47 lakh or even higher fund, ensuring that financial constraints never become a barrier to their daughter’s education or future goals.

For families looking for a safe, tax-free, and rewarding investment option for their girl child, Sukanya Samriddhi Yojana remains one of the strongest choices available today.