What is the Sukanya Samriddhi Yojana?
Sukanya Samriddhi Yojana (SSY) is a Government small-savings scheme created to build a long-term, tax-free corpus for a girl child's education and marriage. It pays 8.2% as of Q1 FY 2026-27 (verify quarterly notification) — the highest rate in the small-savings basket — compounded yearly. The account is opened in the girl's name by a guardian at any post office or authorised bank.
Eligibility
- Girl child below 10 years at the time of opening.
- One account per girl; a maximum of two accounts per family (exception for twins/triplets).
- Opened and operated by a natural/legal guardian until the girl turns 18, after which she operates it herself.
Deposit limits & interest rate
| Feature | Detail (as of Q1 FY 2026-27 (verify quarterly notification)) |
|---|---|
| Interest rate | 8.2% p.a., compounded yearly (reviewed quarterly) |
| Minimum deposit | ₹250 per financial year |
| Maximum deposit | ₹1,50,000 per financial year |
| Deposit frequency | Any number of times, in multiples of ₹50 |
| Where to open | Post office or any authorised bank |
Miss the ₹250 minimum in a year and the account is treated as "defaulted" — revive it by paying ₹50 penalty per missed year plus the minimum; the balance keeps earning interest meanwhile.
Deposit period vs maturity period
This is the rule most people get wrong: you deposit for the first 15 years only, but the account matures 21 years after opening. In the gap (years 16–21) you stop depositing, yet the balance keeps compounding at the SSY rate — which is why the corpus grows sharply at the end even with no fresh deposits.
Years 16–21: balance = balance × (1 + 8.2%)
Maturity preview at the current 8.2% rate
Built at this rate (as of Q1 FY 2026-27 (verify quarterly notification)); the rate changes quarterly so treat these as indicative. For an interactive year-by-year table, use the SSY calculator.
| Yearly deposit (15 yrs) | You deposit | Maturity at 21 yrs | Tax-free interest |
|---|---|---|---|
| ₹12,000 | ₹1,80,000 | ₹5,74,570 (₹5.75 lakh) | ₹3,94,570 |
| ₹60,000 | ₹9,00,000 | ₹28,72,848 (₹28.73 lakh) | ₹19,72,848 |
| ₹1,50,000 | ₹22,50,000 | ₹71,82,119 (₹71.82 lakh) | ₹49,32,119 |
Maturity assumes the 8.2% rate holds throughout — in practice the rate is reset quarterly, so your actual maturity will differ. Verify the current rate on the official portal before you commit.
Tax treatment & withdrawal
- Tax: EEE — deposits get 80C (old regime), interest is tax-free, maturity is tax-free.
- Withdrawal at 18: up to 50% of the previous year-end balance for higher education or marriage.
- Closure: on the girl's marriage after 18, or premature closure on notified compassionate grounds.
Compared with PPF (the other EEE scheme at 7.1%), SSY pays more precisely because it is locked to the girl-child milestones. Many families run both — SSY for the daughter, PPF for the household. See where SSY sits against every other option on the post office schemes page.