SSY is a scheme only for a girl child from birth till 10 years of age. A minimum of Rs 1000 and maximum of Rs 1,50,000 is the limit in each financial year. Launched in 2014 at 9.10% interest rate, it now offers 8.1%. Deposits in SSY are exempted under Section 80C while the interest and withdrawal after maturity are tax exempt. Tenure of the scheme is 21 years but withdrawal is allowed for higher education for meeting actual admission fee requirements if the child has attained 18 years or completed 10th class. Deposits can be made for a maximum of 15 years after opening the account. After this period, account will earn only the interest. Normal closure is allowed after the girl’s age of 18 years and marriage.
But remember, the interest rate in SSY is slowly coming down over the years.