Parents can build a corpus of nearly ₹72 lakh for their daughters through the Sukanya Samriddhi Yojana by investing ₹1.5 lakh annually for 15 years. The scheme offers an 8.2% interest rate. Many parents use this government-backed plan to save for a child's future education or marriage expenses quite effectively.
Parents can build a corpus of nearly ₹72 lakh for their daughters through the Sukanya Samriddhi Yojana by investing ₹1.5 lakh annually for 15 years at...Read More
Nearly ₹72 Lakh: A parent who deposits the maximum ₹1.5 lakh a year, or ₹12,500 a month, in a Selva Maghal Savings Scheme account for 15 years will have invested ₹22.5 lakh. At the current 8.2% interest rate, the account would mature at ₹71.82 lakh. Of that sum, ₹49.32 lakh would come from compound interest, which is more than double the amount deposited.
Girls-Only Scheme: The Selva Maghal Savings Scheme, called Sukanya Samriddhi Yojana nationally, is a central government small savings scheme open only to girls. Parents use it to build funds for a daughter's education or marriage. A parent or legal guardian can open the account at a post office or a participating bank. Only one account is allowed per girl.
Account Rules: Each account accepts a minimum of ₹250 and a maximum of ₹1.5 lakh a year. It must be opened before the girl turns 10. Deposits are required for 15 years, while the account matures 21 years after opening. No deposits are needed in the final six years, but interest continues to accrue until maturity.
Rate Not Fixed: The Finance Ministry has kept the scheme's rate at 8.2% for October-December 2026, stating that rates "shall remain unchanged from those notified for the second quarter". However, the government reviews small savings rates every quarter, so ₹71.82 lakh is an estimate, not a guarantee. It also assumes the full ₹1.5 lakh is deposited at the start of each year; monthly instalments would yield slightly less.
Why It Appeals: The scheme carries a government guarantee, which keeps deposits secure. Its 8.2% rate is among the highest on small savings schemes, level only with the Senior Citizens' Savings Scheme and above the 7.1% Public Provident Fund. Deposits also earn tax benefits. Together, these features make it a long-term vehicle for building a large fund for a daughter.
Compounding Power: Parents who cannot invest a large sum at once can deposit yearly and still benefit from compounding. Interest is added annually, so each deposit earns interest first, and that interest then earns further interest. Over time the balance multiplies. Many assume a large fund needs a large deposit, but small, regular savings can grow into a large sum, and starting early eases the financial burden.
Tax Catch: Deposits qualify for deduction within the overall ₹1.5 lakh limit under Section 80C, now Section 123 of the Income-tax Act, 2025, but only under the old tax regime. Interest on the account is tax-free. A family's second daughter can also get an account with the same benefits. This is for information only; consult a financial adviser before investing.