Sukanya Samriddhi Yojana: Rate, Rules and Maturity Value

Sukanya Samriddhi Yojana (SSY) is a government savings scheme for a girl child that pays 8.2% a year for October–December 2026, with tax-free interest and maturity. You deposit between ₹250 and ₹1.5 lakh a year for 15 years, the account matures 21 years after opening, and up to half the balance can be withdrawn for higher education once your daughter turns 18. It suits parents who want a safe, fixed-income base for a daughter's education or marriage, but it locks money away for a long time.

How Sukanya Samriddhi Yojana works

SSY is a small savings scheme notified by the Ministry of Finance and offered through post offices and authorised banks such as SBI, PNB, Bank of Baroda, HDFC Bank and ICICI Bank. The rules below are as of October 2026.

• Who can open: A parent or legal guardian, for a girl child below 10 years of age.
• How many accounts: One account per girl, and a maximum of two per family. A third is allowed only when twin girls are born in the second birth, or triplet girls in the first.
• Deposits: Minimum ₹250 and maximum ₹1.5 lakh per financial year, in any number of instalments. Amounts above ₹1.5 lakh earn no interest.
• Deposit period: 15 years from opening.
• Maturity: 21 years from opening. Between years 15 and 21 the balance keeps earning interest without new deposits.
• Who operates it: The guardian until the girl turns 18; after that, the account holder herself, once she submits KYC.

How interest is calculated

Interest is calculated monthly on the lowest balance between the 5th and the last day of the month, and credited once a year at the end of the financial year, where it compounds. So a deposit made on or before the 5th of a month earns interest for that month. If you deposit a lump sum, doing it before 5 April earns interest for the full year.

The rate is not fixed for the account's life. The government resets it every quarter, and every rupee in the account earns whatever rate applies that quarter. SSY has been at 8.2% since January 2024, but treat that as today's rate, not a promise.

SSY at a glance (October 2026)

Worked example: ₹1.5 lakh a year

Assume you open an account for a newborn daughter and deposit ₹1.5 lakh every April for 15 years, a total of ₹22.5 lakh. To keep the maths simple, the rate is held at today's 8.2% for all 21 years. This is illustrative; the real figure will depend on future quarterly rates.

Each year, the balance grows as: (opening balance + deposit) × 1.082.

Of the ₹71.82 lakh maturity value, ₹22.5 lakh is your money and about ₹49.3 lakh is interest, all tax-free. Notice that the last six years add roughly ₹27 lakh without a single new deposit; that is compounding on a large balance.

If you can manage only ₹5,000 a month (₹60,000 a year, deposited at the start of each year), the same assumptions give about ₹28.7 lakh at maturity.

Partial withdrawal at 18. Suppose your daughter starts college at 18. You can withdraw up to 50% of the balance at the end of the previous financial year. On the illustration above, that is up to about ₹28 lakh, against fee receipts or an admission letter. The withdrawal can be taken in one go or yearly instalments over up to five years, limited to the actual fee requirement. Whatever you leave in keeps earning interest until maturity.

To try other deposit amounts, the PPF calculator works for SSY too: enter the SSY rate and your yearly deposit, and note that SSY deposits stop after year 15 while the account runs to year 21.

Withdrawal and closure rules

Partial withdrawal for education

Allowed once the girl is 18 or has passed Class 10, whichever comes first. The limit is 50% of the balance at the end of the preceding financial year, and you need proof of admission or a fee demand.

Closure for marriage

The account can be closed early for the girl's marriage, provided she is at least 18 on the date of marriage. The application is made within one month before or three months after the wedding.

Other early closure

• Death of the account holder: The account is closed and the balance, with interest, is paid to the guardian.
• Compassionate grounds: After 5 years, closure is allowed in cases such as a life-threatening illness of the girl or death of the guardian, on documentation.

Tax treatment in FY 2026-27

The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026. SSY's tax status is unchanged: it remains exempt at every stage, often called EEE.

• Deposit: Eligible for the ₹1.5 lakh deduction formerly under old Section 80C, now Section 123 of the new Act read with Schedule XV. This deduction is available only under the old tax regime, and the cap is shared with PPF, EPF, ELSS, life insurance and others. See tax-saving options under 80C.
• Interest and maturity: Fully tax-free, under both regimes.

Under the default new regime, you get no deduction for the deposit, but the tax-free return still makes SSY attractive compared with a taxable FD of similar safety. For the regime choice itself, read new vs old tax regime.

SSY compared with other options for a daughter's goals

SSY currently pays more than PPF, and both are tax-free. Its drawback is liquidity: nothing comes out before 18 except in specific cases, and the 50% limit applies even then. Education costs also tend to rise faster than general inflation, so for a goal 15 or more years away many parents pair SSY with an equity SIP for growth. For a full goal-planning approach, see child education planning, and to compare PPF with other tax-saving products, see PPF vs FD vs ELSS.

How to open and maintain the account

1. Visit a post office or authorised bank branch (many banks also allow opening through net banking for existing customers).
2. Submit the account opening form, the girl's birth certificate, and KYC documents (Aadhaar and PAN) of the parent or guardian.
3. Make the first deposit of at least ₹250.
4. Set a yearly reminder, or a standing instruction, so you never miss the ₹250 minimum. A defaulted account can be revived during the 15-year deposit period by paying ₹250 for each missed year plus a ₹50 penalty per year.
5. Deposit lump sums before 5 April, or monthly amounts before the 5th, to earn the maximum interest.
6. When your daughter turns 18, update her KYC with the branch so that she can operate the account.

Accounts can be transferred anywhere in India between post offices and banks, free of charge if the guardian or girl moves city.

Common mistakes to avoid

• Depositing after the 5th: Money that arrives on 6 April loses a month of interest for that amount.
• Counting on 8.2% forever: Use a lower rate in your planning to be safe.
• Using it as the only goal fund: Its returns are steady but may lag rising college fees. Keep an emergency fund separately, because SSY money is not available for family emergencies.
• Overpaying: Deposits beyond ₹1.5 lakh in a financial year earn nothing.

Key takeaways

• SSY pays 8.2% a year for October–December 2026, reset quarterly and backed by the Government of India.
• Deposit ₹250 to ₹1.5 lakh a year for 15 years; the account matures 21 years after opening.
• Up to 50% can be withdrawn for education once the girl is 18 or has passed Class 10; closure for marriage is allowed after 18.
• Interest and maturity are tax-free; the deposit is deductible under old Section 80C / Section 123 only in the old regime.
• In an illustrative example, ₹1.5 lakh a year for 15 years grows to about ₹71.8 lakh at 21 if the rate stays at 8.2%.
• Deposit before the 5th of the month, never miss the ₹250 minimum, and pair SSY with growth assets for long goals.