SSY guide
Calculation Process
Investment Period
Deposits can be made for 14 years from account opening
Compound Interest
Interest compounds annually at current rate of 8.2%
Maturity Calculation
Account matures when girl child turns 21 years
Withdrawal Options
50% can be withdrawn at 18 for education expenses
SSY Formula
A = P × (1 + r)^n
A = Maturity Amount
P = Annual Investment
r = Interest Rate (8.2%)
n = Number of Years
Key Benefits
- • Highest interest rate among government schemes
- • Complete tax exemption (EEE status)
- • Flexible investment amount (₹250 to ₹1.5L)
- • Partial withdrawal for education
- • Government backing and safety
SSY terms & definitions
A government savings scheme designed to secure the future of girl children, offering attractive interest rates and tax benefits.
A girl child below 10 years of age is eligible for SSY account opening. Only one account per girl child is allowed.
Deposits can be made for 14 years from the date of account opening, with minimum ₹250 and maximum ₹1.5 lakh per year.
The account matures when the girl child turns 21 years old, or gets married after turning 18, whichever is earlier.
Minimum annual deposit is ₹250 and maximum is ₹1,50,000. At least one deposit per year is mandatory to keep account active.
Interest rate is declared by the government quarterly. Currently 8.2% per annum, compounded annually.
50% of the balance can be withdrawn after the girl turns 18 for higher education expenses.
Account can be closed prematurely after girl turns 18 for marriage purposes with required documentation.
Deposits qualify for deduction under Section 80C. Interest earned and maturity amount are completely tax-free.
SSY account can be transferred anywhere in India. Only two transfers are allowed during the account tenure.
Smart SSY tips
💡 Start Early
Open SSY account as soon as possible after birth. Earlier start means more compounding years and higher maturity amount.
💰 Maximize Investment
Try to invest the maximum amount of ₹1.5 lakh annually to get maximum tax benefits and higher returns.
📅 Invest Early in FY
Make deposits at the beginning of financial year to get full year's interest benefit.
🎓 Plan for Education
Remember that 50% can be withdrawn at 18 for higher education. Plan education expenses accordingly.
📈 Consider Inflation
Factor in inflation when planning for future education and marriage expenses. Start with higher amounts if possible.
🔄 Regular Contributions
Make at least minimum deposit of ₹250 annually to keep account active. Missing deposits can make account dormant.
Frequently asked questions
What is the current SSY interest rate in 2026?
The Sukanya Samriddhi Yojana interest rate for 2026 (Q1 2025-26) is 8.2% per annum, compounded annually. It is reviewed quarterly by the government. SSY offers one of the highest guaranteed tax-free returns among small savings schemes.
What is the lock-in and maturity period for SSY?
Deposits are made for 15 years from the date of account opening. The account matures 21 years from opening (or on marriage of the girl, whichever is earlier). Partial withdrawal of up to 50% is allowed after the girl turns 18 for education or marriage expenses.
Who is eligible to open an SSY account?
SSY account can be opened by a parent/legal guardian for a girl child below 10 years of age. Maximum 2 accounts per family (one per girl child). Exception: if twins/triplets are born, a third account is allowed. The girl must be an Indian citizen.
What is the minimum and maximum deposit in SSY?
Minimum deposit is ₹250 per year (to keep account active). Maximum deposit is ₹1.5 lakh per year. Deposits must be made within 15 years of opening. If minimum is not deposited, a penalty of ₹50 applies, and the account becomes irregular.
What are the tax benefits of SSY?
SSY follows EEE (Exempt-Exempt-Exempt) tax status: (1) Deposits qualify for 80C deduction up to ₹1.5 lakh, (2) Interest earned is tax-free, (3) Maturity amount is fully tax-free. This makes SSY one of the best tax-saving instruments for long-term savings.
How does SSY compare to PPF?
SSY offers higher interest (8.2%) vs PPF (7.1%), but is restricted to girl children and has a 21-year horizon. PPF is available to anyone, has a 15-year lock-in, and can be extended. Both follow EEE tax status. SSY is better for girl child-specific planning; PPF is more flexible for general savings.