Understanding the Sukanya Samriddhi Yojana Rules
The Sukanya Samriddhi Yojana (SSY) is a highly attractive small-savings scheme exclusively available to the parents of a girl child. It falls under the EEE (Exempt-Exempt-Exempt) tax category, meaning the invested amount, the interest earned, and the maturity amount are entirely free from income tax under Section 80C.
The 15/21 Rule
- Deposit Phase (15 Years): Once you open the account, you are only allowed to make deposits for the first 15 years. You must deposit a minimum of ₹250 each financial year to keep the account active.
- Growth Phase (16 to 21 Years): Between the 16th and 21st year, you cannot deposit any more funds. However, your accumulated corpus continues to earn compounded interest every year.
- Maturity: The account fully matures exactly 21 years from the date of opening, or when the girl marries after turning 18.