How Sukanya Samriddhi works
Sukanya Samriddhi Yojana (SSY) is a government savings scheme for girls under 10. A parent or guardian opens the account at a post office or authorised bank and deposits for 15 years. The account matures 21 years after it is opened, so for the last six years the balance keeps earning interest without new deposits. The rate is set by the government each quarter and is currently 8.2%, among the highest of any small savings scheme.
Years 1–15: balance = (balance + deposit) × (1 + rate)
Years 16–21: balance = balance × (1 + rate)Worked example
Key rules
| Feature | Rule |
|---|---|
| Who can open | Parent or legal guardian of a girl below 10; up to two daughters (three for twins or triplets) |
| Deposit | ₹250 to ₹1,50,000 per financial year, for 15 years |
| Partial withdrawal | Up to 50% of the previous year's balance once she turns 18, for higher education |
| Early closure | Allowed for her marriage after 18, or on compassionate grounds |
| Tax | Deposits deductible under the old regime; interest and maturity tax-free |
The 50% withdrawal at 18 is useful for college. At age 21, the withdrawable amount in this example would be roughly ₹22.38 lakh.
SSY or PPF for a daughter?
SSY currently pays more than PPF (8.2% vs 7.1%) and is designed around education and marriage milestones. PPF is more flexible and not limited to girls. Both share the same ₹1.5 lakh deduction limit under the old regime. Many parents use SSY for their daughter's future and equity SIPs for extra growth; compare on the PPF calculator.
Frequently asked questions
What is the Sukanya Samriddhi interest rate now?
8.2% a year for July–September 2026. It is reviewed every quarter and applies to the whole balance.
What if I miss a year's deposit?
The account becomes inactive. You can revive it by paying ₹250 for each missed year plus a ₹50 penalty per year.
Can NRIs open an SSY account?
No. If the girl becomes an NRI later, the account rules change, so check with the post office or bank.
Official references: National Savings Institute – SSY · India Post