Sukanya Samriddhi Yojana (SSY) 2026
The highest-rate small-savings scheme, reserved for a girl child’s education and marriage.
Rates for July–September 2026 (Q2 FY 2026-27) · Updated 27 September 2026What is Sukanya Samriddhi Yojana (SSY)?
Sukanya Samriddhi Yojana was launched in January 2015 under the Beti Bachao Beti Padhao campaign. A parent or legal guardian can open the account in the name of a girl child below 10 years of age. Deposits are made for 15 years and the account matures 21 years after opening. At 8.2% p.a. (tax-free), SSY currently offers the highest guaranteed return among small-savings schemes along with SCSS.
SSY at a glance
| Particular | Details |
|---|---|
| Current interest rate | 8.2% p.a. (Jul–Sep 2026) |
| Who can open | Parent / legal guardian of a girl below 10 years |
| Accounts allowed | One per girl; max two per family (three for twins/triplets in the second birth) |
| Deposit period | 15 years from opening |
| Maturity | 21 years from the date of opening |
| Minimum / maximum | ₹250 – ₹1.5 lakh per financial year, in multiples of ₹50 |
| Interest credit | Annually, at the end of each FY |
| Partial withdrawal | 50% of balance after the girl turns 18 or passes Class 10 |
| Premature closure | For marriage after 18, death, or compassionate grounds |
| Tax status | EEE |
Government-notified terms for July–September 2026 (Q2 FY 2026-27). Verify the latest notification before investing.
Features & benefits of SSY
8.2% tax-free is equal to a ~11.7% taxable return for someone in the 30% slab (old regime).
Keep the account active with only ₹250 a year.
Deposits end after 15 years, but interest continues till the 21st year.
Account is operated by the guardian until the girl turns 18; she then operates it herself.
Can be moved between post offices and banks across India.
Up to 50% for higher education once she turns 18 or clears Class 10.
Eligibility — who can invest?
- Girl child must be a resident Indian and below 10 years of age at opening.
- Account is opened by the natural parent or legal guardian (accounts opened by grandparents must be transferred to the natural/legal guardian as per the 2024 guidelines).
- Only one account per girl; maximum two girls per family, three when twins/triplets are born in the second birth (affidavit + birth certificates needed).
- If the girl becomes an NRI or loses Indian citizenship, the account must be closed and stops earning interest.
How does SSY work?
- Deposit at least ₹250 every financial year for the first 15 years.
- Interest is computed on the lowest balance between the 5th and the last day of each month and credited at the end of the FY.
- From year 16 to year 21 no deposits are required — the balance keeps earning interest.
- On completion of 21 years the account matures and the balance is paid to the account holder (the girl).
Tax benefits of SSY
| Stage | Tax treatment |
|---|---|
| Contribution | Deduction up to ₹1.5 lakh under Section 80C (Section 123 of the 2025 Act) — old regime only |
| Interest | Fully exempt |
| Maturity | Fully exempt |
| TDS | None |
Section 80C of the Income-tax Act, 1961 is Section 123 of the Income-tax Act, 2025 from tax year 2026-27. Deductions apply only in the old tax regime.
Withdrawal, premature closure & maturity rules
| Situation | Rule |
|---|---|
| Education withdrawal | Up to 50% of the balance at the end of the preceding FY, once the girl turns 18 or passes Class 10. Needs admission proof / fee receipt. Lump sum or in max 5 yearly instalments. |
| Closure on marriage | Allowed after the girl turns 18 — application from one month before to three months after marriage, with age declaration. |
| Death of account holder | Balance with interest paid to guardian on death certificate. |
| Compassionate grounds | After 5 years for life-threatening illness of the girl or death of guardian — interest at savings-account rate. |
| Maturity | After 21 years from opening; full balance paid to the girl. |
At maturity
| Option | What happens |
|---|---|
| At 21 years | Account closes; balance with interest paid. No interest after maturity. |
| Default account | Missed ₹250 → pay ₹50 penalty per year plus arrears to regularise (within 15 years). |
SSY returns — worked examples
| Yearly deposit (15 yrs) | Total invested | Maturity at 21 yrs @8.2% | Tax-free interest |
|---|---|---|---|
| ₹12,000 (₹1,000/month) | ₹1,80,000 | ₹5,74,570 | ₹3,94,570 |
| ₹50,000 | ₹7,50,000 | ₹23,94,040 | ₹16,44,040 |
| ₹1,00,000 | ₹15,00,000 | ₹47,88,079 | ₹32,88,079 |
| ₹1,50,000 (max) | ₹22,50,000 | ₹71,82,119 | ₹49,32,119 |
Assumes deposits at the start of every FY for 15 years, the 8.2% rate unchanged for 21 years and no withdrawals.
SSY calculator
How to open / invest in SSY
- Visit a post office or authorised bank (SBI, PNB, BoB, ICICI, HDFC, Axis and others).
- Fill the SSY account opening form with the guardian’s and girl’s details.
- Submit the girl’s birth certificate and guardian KYC.
- Make the first deposit (minimum ₹250).
- Receive the passbook; link to net banking for online deposits where the bank permits.
Documents required
- Birth certificate of the girl child
- Aadhaar and PAN of the guardian
- Address proof of the guardian
- Photographs
- Medical certificate / affidavit for multiple births
Important forms
| Form | Purpose |
|---|---|
| Account opening form | Opening the SSY account |
| Withdrawal form | 50% partial withdrawal for education |
| Closure form | Maturity / premature closure |
| Transfer form | Change of post office / bank |
Advantages & limitations
- Highest guaranteed rate in the small-savings basket
- EEE tax status
- Very low minimum deposit
- Interest continues 6 years after deposits stop
- Designed around education and marriage milestones
- Only for girls below 10
- Money is locked until 18 (partial) / 21 (full)
- Only two accounts per family (with exceptions)
- Rate reset quarterly
- Closed immediately if the girl becomes an NRI
Mistakes to avoid
- Opening the account late — each year of delay reduces the interest-only phase
- Missing the ₹250 minimum and paying penalty
- Assuming deposits are needed for 21 years (only 15 are needed)
- Not updating the account operator when the girl turns 18
- Grandparent-opened accounts not transferred to the natural guardian
SSY vs other saving schemes
| Scheme | Rate | Tenure | Minimum | Tax |
|---|---|---|---|---|
| SSY | 8.2% p.a. | 21 years from opening (deposits for 15 years) | ₹250 per financial year | EEE |
| PPF | 7.1% p.a. | 15 years + 5-year extension blocks | ₹500 per financial year | EEE |
| NSC | 7.7% p.a. | 5 years | ₹1,000 | EET (reinvested interest deductible) |
| PO RD | 6.7% p.a. | 5 years (extendable by 5 years) | ₹100 per month | Interest taxable |
| KVP | 7.5% p.a. (compounded) | 115 months (9 years 7 months) | ₹1,000 | Taxable — no deduction |
Frequently asked questions
Can I open SSY online?
Several banks allow online SSY opening or deposits through net banking; the post office requires a branch visit for opening but supports IPPB / online deposits.
What if I miss a deposit?
The account becomes a default account. Pay ₹250 for each missed year plus ₹50 penalty per year to revive it.
Can I transfer SSY from post office to bank?
Yes, free of charge, anywhere in India.
Can the girl withdraw money at 18?
She can withdraw up to 50% for education or close it for marriage; full maturity is at 21 years from opening.
Is SSY better than PPF?
SSY pays a higher rate (8.2% vs 7.1%) and has the same EEE treatment, but is restricted to girls under 10 and linked to her needs. Many parents use both.
Does interest continue after 15 years?
Yes — the balance earns interest until maturity at 21 years.
Information is for education and comparison. Interest rates are notified by the Government every quarter and scheme rules can change — confirm with India Post, your bank, EPFO or PFRDA before investing. FinancePortal is not a financial or tax adviser.