LIC Sukanya Yojana—Is It Really an LIC Scheme? Complete Truth & 2026 Guide

Many people in India still search for “LIC Sukanya Yojana”, believing it is a savings or insurance plan launched by LIC for girl children.
The truth is different: there is no scheme called LIC Sukanya Yojana.
The actual, official scheme is Sukanya Samriddhi Yojana (SSY)—a Government of India savings plan for girl children, operated through Post Offices and authorised banks, including ICICI Bank

This article clears all confusion and explains the complete details of the scheme, benefits, interest rates, tax advantages, eligibility, maturity rules, withdrawal rules, and the step-by-step process to open a Sukanya Samriddhi Yojana account in ICICI Bank in 2026.

Is LIC Sukanya Yojana a Real Scheme? – The Complete Truth

The straight answer is: No. LIC does not offer Sukanya Yojana.

Official Scheme Name

Sukanya Samriddhi Yojana (SSY)
Launched under Beti Bachao Beti Padhao initiative

Who Operates This Scheme?

  • Post Offices

  • Government banks (SBI, PNB, Bank of Baroda, Canara Bank, etc.)

  • Selected private banks (including ICICI Bank, HDFC Bank, Axis Bank

What is Sukanya Samriddhi Yojana (SSY)?

Sukanya Samriddhi Yojana is India’s highest interest and safest government savings plan for girl children.
It helps parents save for their daughter’s education and marriage in a secure, tax-free manner.

Key Features

  • Government guaranteed

  • The highest fixed interest in small savings schemes

  • Tax-free maturity

  • Long-term growth

  • Very low minimum deposit

Sukanya Samriddhi Yojana Interest Rate 2026

The interest rate for SSY is revised every quarter.

 Latest Rate (2026): Approximately 8.2%–8.4% per annum

This rate is:

  • Higher than FD

  • Higher than PPF

  • 100% secure and government-backed

Eligibility Criteria

To open a Sukanya Samriddhi account:

  • The girl must be an Indian citizen

  • Age must be 0 to 10 years

  • Only one account per girl child

  • A family can open maximum 2 accounts
    (Exception: If twins or triplets are born)

Deposit Limits

  • Minimum deposit: ₹250 per year

  • Maximum deposit: ₹1.5 lakh per year

  • You can deposit for 15 years after opening the account

  • The account matures after 21 years

If you stop depositing, the account remains active with earned interest.

Tax Benefits

Sukanya Samriddhi Yojana offers the EEE (Exempt-Exempt-Exempt) tax status:

  1. Deposit tax deduction under Section 80C (up to ₹1.5 lakh)

  2. Interest earned is tax-free

  3. Maturity amount is completely tax-free

This makes it one of the most tax-efficient savings schemes in India.

Withdrawal Rules

Partial Withdrawal

At age 18, up to 50% of the balance can be withdrawn for:

  • Higher education

  • Admission fees

  • Hostel fees

  • Other academic expenses

Full Withdrawal / Maturity

At 21 years, the account matures.
Full balance + interest goes to the girl child’s account.

Premature Closure (Allowed Only In Certain Cases)

  • Death of the account holder

  • Life-threatening disease

  • Marriage after 18 years (with proof)

Benefits of Sukanya Samriddhi Yojana

 

Highest Guaranteed Returns

Better than bank FD, RD, post office MIS, and PPF.

Government-Backed Safety

Zero risk. Principal and interest are assured by the Government of India.

Long-Term Compounding

21-year maturity → wealth creation for the future.

Perfect for Girl Child Education & Marriage

Tax-Free Wealth

No tax on interest or maturity.

Required Documents to Open SSY

To open a Sukanya Samriddhi account in ICICI Bank or any other bank:

  • Girl child’s birth certificate

  • Parent/guardian Aadhaar card

  • Parent’s PAN card

  • Address proof (Aadhaar, voter ID, passport)

  • Passport-size photos

  • Initial deposit amount

How to Open Sukanya Samriddhi Yojana Account in ICICI Bank (2026 Step-by-Step Guide)

Many people prefer private banks like ICICI due to better service and digital facilities.
Here is the complete process:

1) Visit the Nearest ICICI Bank Branch

Sukanya Samriddhi Yojana cannot be opened online in any bank as per 2025 rules.
You must visit a physical branch.

Ask at the help desk:
I want to open a Sukanya Samriddhi Yojana account

2) Fill the SSY Account Opening Form

The form includes:

  • Child’s details

  • Guardian details

  • Deposit amount

  • Nomination

Bank staff will help if needed.

3) Submit KYC Documents

Provide:

  • Girl child birth certificate

  • Parent Aadhaar + PAN

  • Photographs

They will verify and attach documents

4) Make the First Deposit

You can begin with ₹250 to ₹1.5 lakh.

Deposit modes accepted:

  • Cash

  • Cheque

  • Online transfer to the account after it is created

5) Get the Passbook

ICICI Bank will issue an SSY passbook, which contains:

  • Account number

  • Child’s name

  • Guardian’s name

  • Deposits & interest details

  • Maturity date

Keep this passbook safe.

6) Deposit Yearly (Online/Offline)

After the account becomes active, you can deposit:

  • Through ICICI mobile banking

  • Net banking

  • Standing Instruction (auto payment)

  • Cash at branch

7) Track the Maturity

The account matures after 21 years.
You will receive:

  • Principal amount

  • Total accumulated interest (tax-free)

Example Calculation

If you deposit ₹3,000 per month (₹36,000/year) for 15 years:

  • Total Investment: ₹5.4 lakh

  • Expected Maturity Value: ₹10–11 lakh (depends on interest rate)

This is the best safe return scheme for daughters.

Sukanya Samriddhi Yojana is one of the safest and highest-yielding financial plans for girl children in India.

ICICI Bank allows easy account opening with better customer experience and digital payment facilities.

If you are planning for your daughter’s education or marriage, SSY is one of the most reliable and tax-free investment options in 2026.

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