Sukanya Samriddhi Yojana: In 10 years, interest rates swung from 9.1% to 8.2%; check details

The Sukanya Samriddhi Yojana (SSY) was introduced by the Narendra Modi-led government in 2015 with the goal of assisting parents in saving for their daughter’s education or marriage. This scheme provides tax benefits, guaranteed returns, and a sovereign guarantee, making it a secure investment option for parents looking to build a substantial corpus for their child’s future. January 22, 2025, marked a decade of Sukanya Samriddhi Yojana, and its widespread impact is evident through the opening of over 4.1 crore accounts (as of November 2024).

Introduced in 2015 as a component of the ‘Beti Bachao, Beti Padhao’ initiative of the Centre, SSY serves as a savings scheme aimed at assisting parents in building a fund for their daughter’s future educational and marital expenses. Parents or legal guardians can establish an account in their daughter’s name at a participating bank or post office to participate in the scheme. It is one of the ongoing and popular small savings schemes of the current government.

Key features

Sukanya Samriddhi Yojana is a scheme designed for parents of a girl child who is 10 years old or younger. The scheme allows for an annual deposit ranging from a minimum of Rs.250 to a maximum of Rs.1.5 lakh. Deposits can be made for a period of 15 years from the account opening date.

The account has a lock-in period of 21 years, meaning that deposits mature after this time period. In the event that the account holder (girl child) gets married before the end of the 21-year maturity period, the account will be closed and cannot be operated after her marriage.

SSY interest rate trends in last 10 years 

Despite fluctuations over the years, the scheme consistently yields higher returns compared to fixed deposits or similar savings options. The scheme has consistently yielded annual returns of 8% or more in seven of the ten years since its establishment, demonstrating strong performance. The Ministry of Finance revises the SSY’s interest rate quarterly.

Like at present, the government has kept the interest rates at 8.2% for the January and March quarter. 

In 2015, the government launched the scheme at 9.1 interest rate. The interest rate was increased to 9.2% in April of that year. However, rates began to decline in 2016 in line with broader market interest rate trends. From April 2020 to September 2022, the scheme offered its lowest rate of 7.6%. Since January 2024, the SSY account now provides an 8.2% interest rate.

Period                                  Rate of Interest (%) p.a.

03.12.2014 to 31.03.2015    9.1
01.04.2015 to 31.03.2016    9.2
01.04.2016 to 30.09.2016    8.6
01.10.2016 to 31.03.2017    8.5
01.04.2017 to 30.06.2017    8.4
01.07.2017 to 31.12.2017    8.3
01.01.2018 to 30.09.2018    8.1
01.10.2018 to 30.06.2019    8.5
01.07.2019 to 31.03.2020    8.4
01.04.2020 to 31.03.2023    7.6
01.04.2023 to 31.12.2023    8.0
01.01.2024 to 31.03.2025    8.2

(Source: National Savings Institute)

Interest Rate Calculation

Assuming an annual investment of Rs 20,000 for your 5-year-old daughter, at the current interest rate of 8.2% per annum, starting in 2025 and continuing for the next 15 years.

The scheme has a maturity period of 21 years, during which interest will accrue for an additional 6 years after the initial 15-year investment period.

After 21 years, the total maturity value is projected to be approximately Rs 9,23,677, with a total interest earned of around Rs 6,23,677. The total amount deposited over the years will sum up to Rs 3,00,000.

Annual Investment Amount    Rs 20,000
Investment Tenure    15 years
Total Investment Amount in 15 years    Rs 3,00,000
Latest Interest Rate    8.2% per annum
Maturity Tenure    21 years
Starting Period    2025
Maturity Year Including 6-Year Lock-in Period    2046
Total Maturity Amount    Rs 9,23,677
Total Interest Earned on Maturity    Rs 6,23,677

Defaulted account

Failure to meet the minimum annual deposit of Rs.250 in a financial year will result in your account being classified as defaulted. To revive a defaulted account, a minimum payment of Rs.250 must be made, along with an additional Rs.50 for each year of default, within 15 years of the account being opened. A circular from the Department of Posts dated August 21, 2024, specifies that accounts opened under the supervision of grandparents (who are not the legal guardians) will be transferred to the appropriate individual, such as the natural guardian (parents who are alive) or a legal guardian.



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