India: Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme in India created to encourage saving for a girl child's education and marriage.

Key features

• Open an account for a girl child (typically before she turns 10), one per child.
• Contribute yearly (a small minimum up to a cap commonly cited as ₹1.5 lakh).
• Pays a government-set interest rate that has historically been among the highest of small-savings schemes — and it's tax-free.
• The account matures after a set period (linked to the child's age), with partial withdrawal allowed for higher education.

Tax advantage

SSY carries EEE status like PPF: contributions qualify under Section 80C, and both interest and maturity are tax-free.

What it's for

• A safe, high-yielding, tax-free way to fund a daughter's education and future.
• Long-term, goal-specific saving with sovereign backing.

Things to note

• Long lock-in and eligibility restricted to a girl child, so it's a targeted rather than general-purpose tool.
• Rates and limits change — check current terms.

Key takeaway

For parents of a girl child, SSY offers a rare mix of high guaranteed returns, full tax exemption, and government backing — an excellent core for that specific long-term goal.