Sukanya Samriddhi Yojana: ₹1.5 lakh yearly can become ₹70 lakh. What about inflation?

The Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme aimed at promoting the financial security and long-term well-being of the girl child. Since its launch in January 2015 under the Beti Bachao, Beti Padhao initiative, SSY has been trusted by millions of families to support the education and future needs of their daughters.

SSY scheme encourages early and disciplined savings by parents and guardians, while offering assured returns, tax benefits, and withdrawal flexibility for education and other essential needs.

Projected maturity value under SSY

Under the provisions of the Sukanya Samriddhi Yojana, deposits of up to ₹1.5 lakh per financial year may be made for a period of fifteen years from the date of account opening.

The impact of inflation

Over extended time horizons, broader economic factors influence the purchasing power of money. Inflation, which represents the general increase in prices over time, is a natural component of a growing economy. Understanding this aspect enables families to assess future expenses for education, skill development, and other milestones realistically.

Inflation silently reduces the purchasing power of money over time. If inflation averages around 5–6% annually, ₹70 lakh received 21 years later may have the real value of just ₹22–28 lakh in today’s terms.

Key strengths of Sukanya Samriddhi Yojana

• Sovereign guarantee on deposits and interest

• Tax-exempt investment, interest, and maturity proceeds under existing provisions

• Structured savings framework promoting financial discipline

• Partial withdrawal facility for education-related requirements