Definition
Sukanya Samriddhi Yojana
Sukanya Samriddhi Yojana is a government small-savings scheme for the girl child offering attractive, tax-favoured returns to encourage saving for her future.
Sukanya Samriddhi Yojana (SSY) lets parents or guardians open an account for a girl child and deposit each year up to a ceiling, earning an administered rate of interest that is reset periodically. It enjoys favourable tax treatment on contributions, interest and maturity.
The account matures after a set period or can be partly withdrawn for the girl's higher education or marriage at defined ages. As part of the small savings ecosystem, SSY channels household savings into the Public Account while promoting financial security for girls.
Related terms
- Public Account of IndiaThe Public Account of India holds money where the government acts as a banker or trustee, such as provident funds and small savings, which it must eventually repay.
- Small Savings SchemesSmall savings schemes are government-backed savings instruments such as PPF, NSC and Sukanya Samriddhi that channel household savings into the Public Account.
- Direct Benefit Transfer (DBT)Direct Benefit Transfer is the routing of government subsidies and welfare payments straight into beneficiaries' bank accounts to cut leakage and middlemen.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.