The Selvamagal Savings Scheme, officially known as the Sukanya Samriddhi Yojana (SSY), is one of the most beneficial small savings schemes introduced by the government of india for the girl child’s future.
If you’re a parent or guardian of a girl, knowing these 10 essential points can help you secure her future while earning high returns with tax benefits.
Let’s break it down 👇
1. What Is the Selvamagal (Sukanya Samriddhi) Scheme?
This is a long-term savings plan exclusively for the girl child, launched under the Beti Bachao, Beti Padhao initiative.
It helps parents build a financial corpus for their daughter’s education or marriage by investing small amounts regularly.
2. Who Can Open the Account?
· The account can be opened by the parent or legal guardian of a girl child below 10 years of age.
· Each girl can have only one account.
· A family can open accounts for up to two daughters (exceptions allowed for twins/triplets).
3. Where to Open It?
You can open a Selvamagal account at:
· Any Post Office across india, or
· Authorized Public Sector Banks (like SBI, Canara Bank, etc.).
The process is simple — fill out a form, provide the child’s birth certificate, and submit identity/address proof of the guardian.
4. Minimum and Maximum Deposit
· Minimum deposit: ₹250 per year
· Maximum deposit: ₹1.5 lakh per year
You can deposit anytime during the financial year, either in lump sum or installments (up to 12 times per year).
5. Duration and Maturity
· Deposits are allowed for 15 years from the date of account opening.
· The account matures after 21 years, or when the girl gets married after turning 18.
This makes it an ideal long-term investment for education and marriage.
6. Interest Rate (As of Latest Update)
The government reviews the interest rate every quarter.
As of now, it offers around 8.2% per annum (compounded yearly), one of the highest rates among small savings schemes.
The interest is tax-free and continues to accrue even after maturity if not withdrawn.
7. Tax Benefits
Under Section 80C of the Income Tax Act, deposits up to ₹1.5 lakh per year qualify for tax deduction.
Additionally, interest earned and maturity amount are both fully tax-free — making it an EEE (Exempt-Exempt-Exempt) category investment.
8. Partial Withdrawal Facility
Once the girl turns 18 years old, up to 50% of the balance can be withdrawn for higher education expenses.
This feature helps parents manage college costs without disturbing long-term savings.
9. Premature Closure
Premature closure is allowed under specific conditions, such as:
· Marriage of the girl after age 18
· Death of the account holder
· Life-threatening medical emergencies
Otherwise, the account must remain active until maturity for maximum benefits.
10. Why You Shouldn’t Miss It
✅ High interest rates
✅ Triple tax exemption (EEE)
✅ Low risk, government-backed scheme
✅ Perfect for long-term goals like education & marriage
✅ Encourages financial independence for your daughter
If you invest even ₹1,000 per month, you could accumulate over ₹6–7 lakh by the time your daughter turns 21 — with guaranteed returns and zero market risk.
Final Word
The Selvamagal / sukanya Samriddhi Scheme is more than a savings plan — it’s an investment in your daughter’s dreams.
Start early, stay consistent, and let the power of compounding turn your small savings into a secure, bright future for her.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk..jpg)
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