Sukanya Samriddhi Yojana (SSY): Eligibility, Interest, Deposit Rules, Withdrawals, Tax Benefits and Maturity

Sukanya Samriddhi Yojana (SSY) is a government small savings scheme for the girl child, launched under the Beti Bachao Beti Padhao campaign. It offers a rate that has been among the highest of small savings schemes, with tax benefits, and is designed for education and marriage expenses. This guide covers how it works and a sample calculation.

Rates, limits and rules change often. Treat figures as indicative and confirm them on the official source before you act.

Who can open an account

• The account is opened by a parent or legal guardian in the name of a girl child below 10 years of age.
• One account per girl, and a family can generally open accounts for up to two girls, with exceptions for twins or triplets in case of a second birth.
• It can be opened at post offices and authorised bank branches.
• Documents: the girl's birth certificate, the guardian's identity and address proof, and photographs.

Deposits

You can deposit any amount in multiples of ₹50 in a financial year, in lump sum or instalments. If you miss the minimum deposit, the account becomes inactive and can be revived with a small penalty and the missed minimum amounts. Setting a standing instruction is wise.

Interest rate

The government notifies the rate each quarter. It has generally been higher than PPF, and interest is compounded annually and credited at the end of the financial year. Because rates change, check the current figure on India Post or your bank, and use the Sukanya Samriddhi calculator to project outcomes.

Tenure and maturity

The account matures 21 years after opening. Deposits stop after 15 years, but interest continues to be earned until maturity. At maturity the full balance is paid to the girl.

A worked example

Suppose a parent deposits ₹1,00,000 every year for 15 years, and the average rate is 8%. The deposits total ₹15 lakh. Because interest keeps compounding for another six years after deposits stop, the maturity amount would be roughly ₹4,653,395. Actual results will differ depending on the rates announced each quarter, and on the timing of deposits within the year. Depositing before the fifth of each month also helps in some small savings schemes where interest is calculated on the lowest monthly balance, so check the rule applicable.

Withdrawals

• Partial withdrawal: after the girl turns 18 or passes Class 10, whichever is earlier, up to 50% of the balance at the end of the preceding financial year may be withdrawn for higher education or marriage, in one or instalments over up to five years.
• Premature closure: allowed after the girl turns 18 for marriage, or on the death of the account holder, extreme medical conditions or hardships, subject to rules.
• Proof such as admission letters or fee receipts may be asked for.

Tax benefits

SSY enjoys EEE status in the old tax regime: deposits up to ₹1.5 lakh qualify for deduction under section 80C, interest earned is tax-free, and the maturity amount is tax-free. The deduction applies only in the old regime, so compare with the income tax calculator and read income tax deductions.

SSY vs other options

Many parents use SSY for the safe, fixed-income part of a child's education fund and an equity SIP for growth. Do not rely on one product alone.

Tips

• Open the account early to benefit from compounding.
• Deposit at the start of the year if you can, not at year-end.
• Keep passbook and account details safe, and update guardian details when the girl turns 18.
• Do not pay agents for opening accounts. See scam awareness.
• Include the account in your family's records and nomination planning.

Planning around SSY

Treat SSY as a stable foundation, not the whole plan. A common approach is to deposit a fixed amount each year, perhaps ₹50,000 to ₹1.5 lakh, and to run a separate equity SIP for the same goal, keeping SSY for the debt portion. Remember that the girl gains control of the account at 18 for operating purposes, so discuss the plan with her as she grows. Keep proof of age and the passbook safe, and track whether the account has stayed active. If you move cities, the account can be transferred between post offices and banks, so you do not need to close it. Revisit the plan each April when the new financial year starts and rates are reviewed.

Frequently asked questions

Who can open an SSY account?

A parent or guardian for a girl child below 10 years.

What is the maximum deposit?

₹1.5 lakh per financial year.

When does SSY mature?

21 years after the account is opened.

Is SSY tax-free?

Deposits qualify for 80C in the old regime, and interest and maturity are tax-free.

Can I withdraw for education?

Yes, up to 50% of the balance after the girl turns 18 or passes Class 10.

How many SSY accounts can a family open?

Generally two, with exceptions for twins or triplets.

Last reviewed 8 November 2026. Rates, limits and rules change, so confirm figures with the official source before you act.