How Sukanya Samriddhi Yojana works
Sukanya Samriddhi Yojana (SSY) is a government savings scheme for the girl child, part of the Beti Bachao Beti Padhao campaign. It offers one of the highest guaranteed, tax-free returns among small savings schemes: 8.2% a year for October–December 2026.
- Who can open: a parent or legal guardian, for a daughter under 10 years old. One account per girl and at most two per family (three for twins or triplets).
- Deposits: ₹250 to ₹1,50,000 per financial year, for 15 years from opening.
- Maturity: 21 years from the date of opening. For the last 6 years the account keeps earning interest without deposits.
- Interest: calculated monthly on the lowest balance between the 5th and the end of the month, and credited once a year, so it compounds yearly. Deposit by 5 April to earn interest on the full year.
- Tax: EEE. Deposits qualify for Section 80C (old regime), and interest and maturity are tax-free.
How much will Sukanya Samriddhi give?
| Yearly deposit | Total deposited (15 years) | Maturity after 21 years (8.2%) |
|---|---|---|
| ₹12,000 (₹1,000 a month) | ₹1,80,000 | ₹5,74,570 |
| ₹50,000 | ₹7,50,000 | ₹23,94,040 |
| ₹1,50,000 (maximum) | ₹22,50,000 | ₹71,82,119 |
Deposits are made at the start of each financial year, and the rate is assumed to stay at 8.2% for all 21 years. The actual rate is revised every quarter.
Withdrawals and closure
- Education: once your daughter turns 18 or passes Class 10, you can withdraw up to 50% of the balance at the end of the previous financial year for her higher education, against an admission or fee proof.
- Marriage: the account can be closed early for her marriage after she turns 18, between one month before and three months after the wedding.
- Compassionate grounds: early closure is allowed after 5 years for a life-threatening illness of the account holder or the death of the guardian.
- Missed deposits: the account becomes a defaulted account. Revive it within the deposit period by paying the minimum ₹250 for each missed year plus a ₹50 penalty per year.
Frequently asked questions
What is the Sukanya Samriddhi interest rate in 2026?
8.2% a year, compounded yearly, for the October–December 2026 quarter. The rate is announced every quarter and applies to the whole balance, both old and new deposits.
How much should I invest in SSY per month?
Any amount from ₹250 a year up to ₹1,50,000 a year. ₹1,000 a month (₹12,000 a year) grows to about ₹5.75 lakh, and ₹12,500 a month (the ₹1.5 lakh maximum) to about ₹71.8 lakh after 21 years at 8.2%.
When does an SSY account mature?
21 years after it is opened. If you open it when your daughter is 3, it matures when she is 24. You only deposit for the first 15 years.
Is SSY better than PPF?
For a daughter's future, SSY currently pays more (8.2% vs 7.1%) and is also tax-free, but the money is locked until she is 18–21. PPF is more flexible. Both share the same ₹1.5 lakh Section 80C limit.