Sukanya Samriddhi Yojana: Interest, Rules, Maturity Value and Withdrawals Explained

Sukanya Samriddhi Yojana, usually called SSY, is a government small-savings scheme for the future education and marriage expenses of a girl child. It combines a high fixed interest rate, a long lock-in and tax-free returns, which makes it one of the best low-risk options for parents. This guide covers the rules, a worked maturity example and the points that people often miss.

Who can open an account

• The account is opened in the name of a girl child, by a parent or legal guardian, before she turns 10.
• One account per girl. A family can generally open accounts for up to two daughters, with an extra account allowed in case of twins or triplets born in the second birth.
• It can be opened at a post office or authorised bank with the birth certificate and identity and address proof of the guardian.

Deposits

The minimum is ₹250 a year and the maximum is ₹1.5 lakh in a financial year. You can deposit in any number of instalments. Deposits are needed for the first 15 years only. After that the balance keeps earning interest until the account matures 21 years after it was opened. If you miss the minimum in a year, the account becomes irregular and needs a small penalty to revive, so set up a standing instruction.

Interest rate

The government announces the rate every quarter. It has been around 8.2% in recent quarters, higher than PPF, but it can go up or down, so check the current rate before you plan. Interest is compounded annually and calculated on the lowest balance between the 5th and the end of each month, so depositing before the 5th of the month earns a month more interest. Remember the rule when you set the date of a monthly deposit.

Maturity example

Suppose you deposit ₹1.5 lakh a year for 15 years and the rate stays at 8.2%. The deposits total ₹22.5 lakh. After the deposit period ends, the balance compounds for another six years. The table shows the approximate result, assuming a constant rate and one deposit each April.

These are illustrations at a fixed rate. The real result will differ as the rate changes. The Sukanya Samriddhi calculator lets you try your own amount and start age.

Withdrawals before maturity

• Education or marriage: up to 50% of the balance at the end of the preceding financial year can be withdrawn once the girl turns 18 or passes class 10, whichever is earlier, with proof of fees or the marriage.
• Marriage after 18: the account can be closed prematurely on marriage after she turns 18.
• Exceptional cases: closure is allowed on the death of the account holder or in cases of extreme hardship such as a medical emergency, with evidence.

Tax treatment

Deposits qualify for deduction under section 80C within the ₹1.5 lakh limit in the old tax regime. Interest earned and the maturity amount are exempt from tax. Under the new regime you do not get the deposit deduction, but the interest and maturity still remain tax-free. Compare regimes using the income tax calculator.

How SSY compares with PPF and an equity SIP

For a daughter's long-term goal, many parents run SSY for the safe, tax-free base and a separate equity SIP, such as an index fund SIP, for growth. This keeps the guaranteed part intact while allowing some risk for a higher potential return.

Practical tips

1. Open the account early. The earlier you start, the more time compounding has.
2. Deposit before the 5th of each month, or invest the full year amount in April.
3. Keep a nominee and the passbook details safe, and transfer the account when you move cities.
4. Plan the withdrawal at 18 in line with the actual fee schedule.
5. Confirm the current interest rate and rules at your post office or bank, since schemes are revised.

Frequently asked questions

What is the minimum and maximum deposit in SSY?

₹250 minimum and ₹1.5 lakh maximum in a financial year.

For how long do I need to deposit?

For 15 years from opening. The account matures 21 years after opening.

What is the SSY interest rate?

It is set quarterly by the government and has been about 8.2% recently. Check the current rate.

Is SSY maturity taxable?

No. Interest and maturity proceeds are exempt from tax. The deposit deduction under 80C applies only in the old regime.

Can I withdraw before maturity?

Up to 50% of the balance can be withdrawn for education after the girl turns 18 or passes class 10, and the account can be closed on marriage after 18.

How many SSY accounts can a family open?

Generally two, one per daughter, with an exception for twins or triplets.

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