Definition
Sukanya Samriddhi Yojana (SSY)
SSY is a government small-savings scheme for the girl child offering high, tax-free interest to build a corpus for her education and marriage.
Sukanya Samriddhi Yojana (SSY) is a government-backed scheme that a parent or guardian can open for a girl child below a certain age, at a post office or bank. It typically offers one of the highest interest rates among small-savings schemes, set by the government each quarter.
Contributions qualify for deduction under Section 80C, and the scheme enjoys EEE tax treatment — contributions, interest and maturity are all tax-free. Deposits are made for a fixed number of years, with the account maturing after a longer period or on the girl's marriage after she turns 18, and partial withdrawal allowed for higher education.
SSY is one of the most attractive long-term, safe instruments for a daughter's future, combining sovereign safety, high returns and full tax exemption.
Related terms
- Section 80CSection 80C allows a deduction from taxable income for specified investments and expenses, such as EPF, PPF, ELSS, life insurance premiums and home-loan principal, under the old regime.
- National Savings Certificate (NSC)NSC is a fixed-income government savings bond sold at post offices, offering guaranteed returns and a Section 80C tax benefit.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.