Sukanya Samriddhi Yojana is the one government scheme most Indian parents of daughters should use and almost nobody uses to its full potential. The current rate is 8.2% — higher than PPF, higher than most FDs, tax-free at maturity, and backed by the Government of India. If you have a daughter under 10, this account should already exist.
The calculator below shows what the account will be worth when it matures.
How SSY works — the three numbers to know
15 years of deposits. You deposit money for 15 financial years from the year of account opening. After that, no more deposits — but the balance keeps earning interest.
21 years to maturity. The account matures 21 years from the date of opening. So for 6 years after you stop depositing, the accumulated balance just compounds quietly at whatever the current SSY rate is.
₹250 minimum, ₹1.5 lakh maximum per year. You can deposit any amount between these limits in a financial year. The deposit doesn’t have to be equal every year. But the maximum deductible under 80C is ₹1.5 lakh.
The 8.2% rate in context
SSY rate for Q1 FY 2025-26 is 8.2% p.a., compounded annually. Compare:
| Instrument | Current rate | Tax on maturity |
|---|---|---|
| Sukanya Samriddhi | 8.2% | Nil (EEE) |
| PPF | 7.1% | Nil (EEE) |
| SBI 5-yr FD | 6.5% | 30% TDS if applicable |
| NSC | 7.7% | Taxable |
| Post Office 5-yr RD | 6.7% | Taxable |
EEE means exempt at all three stages: contribution (80C deduction), accumulation (no tax on interest), and withdrawal (maturity is tax-free). PPF is the only comparable instrument and SSY beats it by 1.1 percentage points right now.
Worked example: ₹50,000/year for a daughter born in 2023
Parents open an SSY account in 2024 (girl’s age: 1 year). Annual deposit: ₹50,000.
| Year | Age | Cumulative deposit | Year-end balance (8.2%) |
|---|---|---|---|
| 1 | 1 | ₹50,000 | ₹54,100 |
| 5 | 5 | ₹2,50,000 | ₹3,13,000 approx |
| 10 | 10 | ₹5,00,000 | ₹7,55,000 approx |
| 15 | 15 | ₹7,50,000 | ₹14,32,000 approx |
| 21 | 21 (maturity) | No new deposits | ₹22,95,000 approx |
Total deposited: ₹7,50,000. Maturity value at 8.2%: approximately ₹23 lakh. Interest earned: ₹15.45 lakh — more than double what was put in.
At maximum deposit of ₹1.5 lakh per year for 15 years, the maturity amount at 8.2% comes to roughly ₹69 lakh on a total deposit of ₹22.5 lakh.
Rules most parents miss
Only two accounts per family. One account per daughter, maximum two daughters. Exception for twins or triplets born in the second birth.
Partial withdrawal at 18. After the girl turns 18 (or passes Class 10, whichever is later), you can withdraw up to 50% of the balance as of the end of the previous financial year. This is for higher education or marriage expenses.
Account can be transferred. If the family moves, the SSY account can be transferred from one post office or bank to another anywhere in India, free of charge.
Premature closure. Allowed only in specific cases: account holder’s death, extreme compassionate grounds (life-threatening illness), or on marriage after the girl turns 18. Premature closure for other reasons attracts post office savings account interest rate (currently 4%).
Deposits must happen every year. If you skip a year, the account becomes irregular. You can regularise it by paying ₹50 penalty per year of default plus the minimum deposit of ₹250 per missed year.
Tax benefits
- Deposit up to ₹1.5 lakh per year qualifies for 80C deduction (shared with PPF, ELSS, etc.)
- Interest earned annually is exempt from tax (Section 10)
- Maturity amount is fully tax-free
SSY is EEE — every rupee going in reduces taxable income, every rupee growing inside is tax-free, and every rupee coming out at maturity is tax-free. No other fixed-income instrument for small investors matches this triple exemption at 8.2%.
Where to open an SSY account
- Any post office (most accessible option)
- Nationalised banks: SBI, PNB, Bank of Baroda, Canara Bank, etc.
- Select private banks authorised by RBI: Axis, ICICI, HDFC
Documents: girl’s birth certificate, parent/guardian Aadhaar, PAN, and a passport photo. Account can be opened in the girl’s name with a parent or legal guardian as operator until the girl turns 18.
Frequently asked questions
Can I deposit more than ₹1.5 lakh per year?
No. Deposits above ₹1.5 lakh in a financial year are returned without interest. The ₹1.5 lakh ceiling is absolute, not just the tax-deductible limit.
What happens if I miss depositing for a year?
The account becomes irregular. You need to pay ₹50 per defaulted year plus the minimum ₹250 deposit per year to regularise. The interest on the balance continues to accrue even during default years — only the penalty and minimum deposit obligation arise.
Will the 8.2% rate change?
Yes. The government revises SSY rates quarterly (along with other small savings rates). Historically SSY has stayed 0.75–1% above PPF. The rate applied is the rate prevailing at the time of each year’s deposit — there is no lock-in on the rate. If rates fall, future deposits earn a lower rate.
Is SSY better than ELSS for daughters?
SSY wins on safety, guaranteed return, and tax treatment. ELSS wins on potential return (equity-linked, historical 12–14% over 10+ years) and flexibility (no age restrictions, lump sum any time). For a newborn with 21 years ahead, an 8.2% guaranteed tax-free return is genuinely hard to beat on a risk-adjusted basis. Many parents do both — max out SSY first, then top up with an ELSS SIP for the remaining 80C headroom.
Sources
- Ministry of Finance: SSY scheme guidelines and Q1 FY 2025-26 interest rate notification
- India Post: SSY account opening and operational guidelines
- CBDT: Section 10 exemption for SSY maturity proceeds