Sukanya Samriddhi Yojana Guide 2026
Sukanya Samriddhi Yojana (SSY) is a government-backed small savings scheme launched in January 2015 under the Beti Bachao Beti Padhao initiative. It gives parents and guardians a dedicated, high-interest, fully tax-exempt vehicle to build a corpus for a girl child's higher education and marriage. The scheme is straightforward, the returns are among the best available in any guaranteed instrument, and the EEE tax status — exempt at contribution, exempt on interest, exempt at maturity — makes it uniquely powerful for long-horizon goals.
This guide walks you through every material rule you need to know in five steps, from eligibility to withdrawal.
Step 1: Check Eligibility and Open Account
Who can open an account
An SSY account can be opened by a parent or legal guardian of a girl child who is below 10 years of age on the date of account opening. The child must be an Indian resident. One account per girl child, and a maximum of two accounts per family — one for each daughter. If the second birth in a family results in twin girls or triplet girls, a third account is permitted under special provisions for multiple births.
There is no income limit. Any parent or guardian, regardless of income bracket, can open an account.
Where to open
Accounts can be opened at any:
- Head post office or sub-post office across India
- Authorised commercial banks — State Bank of India, Punjab National Bank, Bank of Baroda, Canara Bank, ICICI Bank, Axis Bank, HDFC Bank, and others notified by the Ministry of Finance
The process requires the girl child's birth certificate, the parent or guardian's identity and address proof, and a photograph. A passbook is issued at account opening.
Age cut-off matters
Once a girl child turns 10, no new account can be opened in her name. This deadline is firm — there are no grace periods or exceptions. If your daughter is approaching 10, open the account immediately even if you plan to deposit the minimum amount for now.
Step 2: Understand the Scheme Rules
Deposit rules
| Parameter | Rule |
|---|---|
| Minimum per financial year | Rs 250 |
| Maximum per financial year | Rs 1,50,000 |
| Deposit period | 15 years from account opening date |
| Account maturity | 21 years from account opening date |
Deposits are made for only 15 years, but the account stays open for 21 years. From year 16 to year 21, no fresh deposits are required — the balance continues to earn compounding interest at the prevailing SSY rate. This six-year compounding tail is one of the most underappreciated features of the scheme.
You can deposit in a single lump sum or in as many instalments as you like within a financial year. There is no cap on the number of transactions.
Interest rate
The current SSY interest rate is 8.2% per annum, compounded annually. The Ministry of Finance reviews and announces the rate every quarter (April, July, October, January). Interest is calculated on the minimum balance between the 10th and the last day of each calendar month and credited to the account at the end of the financial year.
This means deposits made before the 10th of any month earn interest for that full month. A practical implication: making your annual deposit in April, before the 10th, earns you a full year of interest on that deposit.
Irregular accounts
If you fail to deposit the minimum Rs 250 in any financial year, the account is classified as irregular. Reactivation requires paying Rs 50 per defaulted year as a penalty, plus the minimum deposit for each missed year. The account continues to earn interest on the existing balance even while irregular.
Step 3: Calculate Your Target Corpus
The Sukanya Samriddhi Calculator lets you model exactly how much your daughter will receive at maturity based on how much you deposit each year.
Illustration at maximum deposit
Deposit Rs 1,50,000 per year for 15 years at a constant rate of 8.2% compounded annually:
| Year | Annual Deposit | Cumulative Deposit | Balance at Year End |
|---|---|---|---|
| 1 | Rs 1,50,000 | Rs 1,50,000 | Rs 1,62,300 |
| 5 | Rs 1,50,000 | Rs 7,50,000 | Rs 9,49,289 |
| 10 | Rs 1,50,000 | Rs 15,00,000 | Rs 24,34,296 |
| 15 | Rs 1,50,000 | Rs 22,50,000 | Rs 49,24,887 |
| 21 (maturity) | No deposit | Rs 22,50,000 | Rs 71,82,119 |
Depositing the maximum Rs 1.5 lakh every year for 15 years produces approximately Rs 71.82 lakh at maturity — on a total investment of Rs 22.5 lakh. The remaining Rs 49.32 lakh is entirely tax-free interest.
Adjusting for inflation
Rs 71 lakh in 2026 is not the same as Rs 71 lakh in 21 years. Use the Inflation Calculator to convert that corpus to today's purchasing power. At India's historical consumer price inflation of around 5–6%, Rs 71 lakh received in 2047 has roughly the purchasing power of Rs 24–28 lakh today. This is still significant, but it underscores why supplementing SSY with equity investments through a SIP can meaningfully increase your daughter's real wealth.
What if you cannot deposit Rs 1.5 lakh?
At Rs 50,000 per year for 15 years (8.2%), the maturity corpus is approximately Rs 23.94 lakh. At Rs 1,00,000 per year it is approximately Rs 47.88 lakh. Run your own numbers on the SSY Calculator.
Step 4: Understand Tax Benefits
SSY carries EEE (EEE) status — the most favourable tax treatment available in India:
E1 — Exempt at contribution (Section 80C)
Deposits into SSY qualify for deduction under Section 80C of the Income Tax Act. The aggregate limit across all 80C instruments is Rs 1.5 lakh per financial year. If you invest Rs 1.5 lakh in SSY, you have utilised your entire 80C limit. This reduces your taxable income by Rs 1.5 lakh, saving Rs 46,800 per year if you are in the 30% tax bracket (including surcharge and cess at applicable rates).
E2 — Exempt on interest
Interest accruing on the SSY balance is completely exempt from income tax each year. You do not need to declare it as income, add it to your total income, or pay any tax on it. This is unlike bank fixed deposits where interest is taxable, and even unlike some other small savings schemes.
E3 — Exempt at maturity
The entire maturity amount — principal plus all interest accumulated over 21 years — is tax-free when withdrawn. There is no Long-Term Capital Gains (LTCG) tax, no TDS, and no disclosure requirements beyond standard wealth reporting. This stands in contrast to equity mutual funds where gains above Rs 1 lakh attract 10% LTCG tax.
Comparison with PPF
Both SSY and PPF carry EEE status. The difference is the interest rate: SSY currently offers 8.2% versus PPF's 7.1%. Compare projected outcomes using the PPF Calculator.
Step 5: Understand Withdrawal Rules
Partial withdrawal for education (after girl turns 18)
Once the girl child turns 18, you can withdraw up to 50% of the account balance as at the end of the previous financial year. This withdrawal is specifically permitted for the purpose of higher education. You must submit:
- A confirmed admission offer or a fee demand letter from a recognised educational institution
- Proof that the girl is 18 or older
The withdrawal can be taken as a lump sum or in up to five annual instalments. The remaining 50% continues to earn interest until maturity.
Full withdrawal at maturity
The account matures 21 years from the date of account opening. On maturity, the full balance — principal and all accumulated interest — is paid to the girl child (who is by then the account holder in her own right). The entire amount is tax-free.
Premature closure on marriage after 18
If the girl marries after turning 18 but before the account matures at 21, the account can be prematurely closed. The application for closure must be submitted no earlier than one month before the marriage date and no later than three months after the marriage date. Age proof confirming she is 18 or older must accompany the request. The full balance is paid out tax-free.
Premature closure on other grounds
Premature closure is permitted only in two other situations:
- Death of the account holder — the balance is paid to the guardian or nominee immediately.
- Medical grounds — in cases of life-threatening illness of the account holder or death of the guardian, the government may allow premature closure.
Premature closure for any other reason — financial hardship, parent's preference to switch investments, or any other ground — is not permitted. This is a material restriction compared to PPF, which allows partial withdrawals from year 7 for any purpose. Use the PPF Calculator if you need a more flexible long-term instrument.
Account transfer
SSY accounts can be transferred between any post offices and authorised banks across India at no charge. This is useful if a family relocates to another city.
Key Terms
- SSY (Sukanya Samriddhi Yojana) — A government small savings scheme for girl children, offering high guaranteed returns and EEE tax status.
- EEE (Exempt-Exempt-Exempt) — Tax treatment where the investment, interest earned, and maturity proceeds are all exempt from income tax.
- Section 80C — The Income Tax Act provision allowing deduction of up to Rs 1.5 lakh per year for specified investments including SSY, PPF, ELSS, and life insurance premiums.
- Compounding — The process by which interest earned in one period itself earns interest in subsequent periods, exponentially growing the corpus over time.
Related Tools
- Sukanya Samriddhi Calculator — Model your SSY corpus with custom deposit amounts and view year-by-year balance growth.
- PPF Calculator — Compare SSY with PPF to decide which instrument better suits your family's goals.
- SIP Calculator — Plan the equity component of your daughter's education fund alongside SSY.
- Inflation Calculator — Understand what your SSY maturity corpus will actually be worth in real terms at the time of withdrawal.