The Sukanya Samriddhi Yojana currently offers 8.2% tax-free returns with government backing, making it a popular long-term investment option for daughters. According to reports from Mint, the scheme allows minimum investments of ₹250 and maximum of ₹1.5 lakh per financial year, with account opening permitted until the girl child turns 10 years old. The government reviews and resets the interest rate quarterly in line with prevailing interest rate cycles. A notable feature is that SSY accounts cannot be attached for parental liabilities, protecting the corpus from creditor claims.
As reported by Mint, investing ₹1.5 lakh annually from birth can grow the corpus to nearly ₹44.7 lakh in 15 years at the current 8.2% interest rate. By age 18, the corpus may reach approximately ₹56.69 lakh, though only 50% (₹28.34 lakh) can be withdrawn for higher education. If parents make this partial withdrawal, the remaining corpus may grow to roughly ₹35.91 lakh by maturity at 21 years. Alternatively, without withdrawal, the corpus may reach nearly ₹71.82 lakh at maturity. Contributions qualify for deduction under Section 80C of the Income Tax Act in the old tax regime, while interest earned and maturity amount remain tax-free under both regimes.
According to Chandigarh-based certified financial planner Harminder Garg as reported by Mint, SSY should be part of a diversified investment strategy rather than a standalone solution. "SSY enables you to invest for education and marriage. But linking these goals only with SSY would not help. You must first know how much corpus you want for both goals. Asset allocation should happen at the goal level. We generally recommend allocating 25-50% to SSY and the rest to diversified equity funds," Garg stated. Mumbai-based registered investment advisor Viresh Patel agrees that SSY alone may not be sufficient for long-term goals, recommending it as part of debt allocation for education goals while also investing in equities given the long investment horizon.
As reported by Mint, the long lock-in period serves as both a strength and limitation depending on family financial behavior. Patel noted that the lock-in helps prevent families from using children's investments during emergencies, ensuring important life goals remain protected. However, the restriction can become problematic when education expenses arise at 18, as only half the balance can be withdrawn. Had the same money been invested in more flexible instruments such as mutual funds, the entire corpus could potentially be available when required. The scheme works best when started early, with Patel recommending starting before the child turns 3-4 years old for optimal compounding benefits.
