what is sukanya samriddhi yojana

Sukanya Samriddhi Yojana is a government-backed saving scheme targeted at the parents of girl children in India. The scheme encourages parents to build a fund for the future education and other expenses of their female child. The account can be opened in the name of a girl child till she attains the age of 10 years, and only one account can be opened in her name. The tenure of investment under SSY is 21 years, starting from the accounts opening date. The minimum annual contribution to the Sukanya Samriddhi Account is Rs. 250, and the maximum contribution is Rs. 1.5 Lakh in a financial year. The scheme offers an attractive interest rate of 8%, which is fully exempt from tax under section 80C. The scheme comes with several tax benefits, and the contributions made to the account are eligible for tax deductions under Section 80C of the Income Tax Act. The scheme was launched in 2015, and by October 2015, over 76 lakh accounts had been opened under the scheme, with a total deposit of over Rs. 2838 crore.