Sukanya Samriddhi Yojana (SSY): Interest Rate, Tax Benefits & How to Open
What is Sukanya Samriddhi Yojana
Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme launched on January 22, 2015 under the Beti Bachao, Beti Padhao campaign. It is designed specifically for parents saving for a girl child's higher education or marriage.
The account is opened in the girl's name by a parent or legal guardian. Contributions are made for 15 years. The account matures at 21 years, and the entire corpus - principal plus interest - is paid to the girl, completely tax-free.
The scheme is run through post offices and authorised public sector and private banks across India.
Key facts at a glance
Tax benefits - and the new regime catch
SSY has what is called EEE (Exempt-Exempt-Exempt) status, meaning all three stages are tax-free:
- Contribution: Deductible under Section 80C, up to Rs 1.5 lakh per year
- Interest: Fully exempt under Section 10(11A) - not added to income
- Maturity proceeds: Completely tax-free when withdrawn
New tax regime users: read this. Section 80C deductions - including SSY contributions - are not available under the new tax regime. If you have opted out of the old regime, your SSY deposits will not reduce your taxable income at all. The interest and maturity remain tax-free under both regimes, but the upfront 80C benefit - worth up to Rs 46,800 per year for a 30% bracket taxpayer - is gone.
This matters because the new tax regime has seen rapid adoption. If you are unsure which regime you are on or how much difference it makes, the income tax calculator compares both side by side.
Calculate your SSY maturity amount — SSY Calculator Compare old vs new regime tax - Income Tax CalculatorWhat SSY's EEE status means in rupees
Maturity estimate - Rs 1.5L invested per year for 15 years at 8.2%
Eligibility
- Account must be opened for a girl child under 10 years of age
- Only Indian residents are eligible - NRIs and OCIs cannot open SSY
- Maximum two SSY accounts per family (one per girl child)
- A third account is allowed if the second birth results in twins or triplets
- Account is operated by the parent or legal guardian until the girl turns 18
Age cutoff is strict. The account must be opened before the girl's 10th birthday. There are no exceptions. If your daughter turns 10 tomorrow, today is the last day to open it.
How to open an SSY account
Accounts can be opened at any post office branch or at authorised banks including SBI, PNB, Bank of Baroda, Canara Bank, HDFC, ICICI, and Axis Bank, among others.
Available at any post office counter or on the India Post website. Most banks also have their own version of the form.
Birth certificate of the girl child, Aadhaar card of parent/guardian, address proof (Aadhaar/utility bill/passport), and two passport-size photographs.
Post offices require an in-person visit - no online option. Some banks allow online account opening via net banking or mobile app once you are an existing customer.
Minimum Rs 250. Maximum Rs 1.5 lakh in the first financial year. Deposit by cash, cheque, or demand draft.
A physical passbook is issued as the account record. Keep this safe - it is required at the time of withdrawal and account closure.
Deposit rules, tenure and maturity
You must make at least one deposit per financial year (April to March). The account runs for 21 years from the date of opening, but contributions are only required for the first 15 years. After year 15, no more deposits are needed and the account continues to earn 8.2% interest until maturity.
Missed a year? If you skip a financial year, the account becomes inactive. To reactivate it, pay Rs 50 per defaulted year as a penalty, plus the minimum Rs 250 deposit for each missed year. The account continues earning interest during inactivity.
The interest is calculated on the lowest balance between the 5th and last day of the month, and credited to the account at the end of each financial year. This means deposits made before the 5th of a month earn interest for that full month.
Withdrawal rules
Partial withdrawal (for higher education)
Once the girl turns 18 or passes the 10th standard (whichever is earlier), you can withdraw up to 50% of the balance as of the end of the preceding financial year. This is allowed once per year and only for higher education fees - admission fees, tuition fees, and similar documented expenses.
Premature closure for marriage
The account can be closed early when the girl gets married, provided she is at least 18 years old. The application must be submitted between 1 month before the wedding and 3 months after. Age proof and marriage documentation are required.
Premature closure for other reasons
Allowed in two cases: death of the account holder (balance paid to guardian with accrued interest) and life-threatening illness of the account holder or death of the guardian who operates the account. In both cases, post-office or bank verification is required.
Full maturity withdrawal
At 21 years, the full balance including all accumulated interest is paid to the girl on submitting an application with identity proof, address proof, and citizenship documents. If no withdrawal is made after maturity, the account earns no further interest.
SSY vs PPF: quick comparison
Both are government-backed, both offer EEE tax status, both cap at Rs 1.5 lakh per year under 80C. The differences matter.
| Feature | Sukanya Samriddhi (SSY) | PPF |
|---|---|---|
| Interest rate (FY 2025-26) | 8.2% | 7.1% |
| Who can open | Girl child (under 10) only | Any Indian citizen |
| Tenure | 21 years (fixed) | 15 years (extendable in 5-yr blocks) |
| Minimum deposit | Rs 250/year | Rs 500/year |
| Maximum deposit | Rs 1.5 lakh/year | Rs 1.5 lakh/year |
| 80C deduction (old regime) | Yes | Yes |
| Interest | Tax-free | Tax-free |
| Maturity proceeds | Tax-free | Tax-free |
| Partial withdrawal | 50% after girl turns 18 (education only) | Up to 50% from year 7 onwards |
| Loan against account | Not available | Available from year 3 |
| NRI eligibility | Not eligible | Not eligible |
If you have a daughter under 10, SSY gives you 110 basis points more than PPF every year, with identical tax treatment. The higher rate and the forced long-term horizon make SSY the better option specifically for a daughter's education or marriage corpus. PPF wins on flexibility - you can extend it, take a loan against it, and open it for yourself or a son.
Calculate your PPF maturity amount - PPF Calculator