If you have a daughter under 10, Sukanya Samriddhi Yojana (SSY) is one of the most attractive government-backed small savings schemes in India — offering an 8.2% interest rate, sovereign safety, and tax-free compounding.
Whether you are planning for higher education or long-term financial security, understanding the exact sukanya samriddhi account rules, 21-year maturity calculation, withdrawal criteria, and tax implications under the new vs. old tax regimes helps you make an informed decision.
This comprehensive guide covers everything you need to know about Sukanya Samriddhi Yojana in 2026.
What Is Sukanya Samriddhi Yojana?
Sukanya Samriddhi Yojana is a dedicated small savings scheme launched under the Beti Bachao, Beti Padhao initiative. Administered by the Ministry of Finance under the National Small Savings Fund (NSSF), it enables parents and legal guardians to build a secure, inflation-beating corpus for a girl child's future education and marriage expenses.
The account can be opened at any India Post office or authorized commercial bank branch across the country.
SSY Interest Rate 2026
The SSY interest rate for Q2 FY 2026-27 (July–September 2026) is 8.2% per annum, compounded annually. The Ministry of Finance reviews interest rates every quarter. SSY has been held at 8.2% since January 2024 (Q4 FY 2023-24). This places SSY joint-highest among government small savings schemes, tied with the Senior Citizens Savings Scheme (SCSS) at 8.2%, and significantly higher than PPF (7.1%), National Savings Certificates (7.7%), and typical 5-year bank fixed deposits.
Rates for Q3 FY 2026-27 (October–December 2026) had not been notified as of 22 September 2026.
| Quarter | SSY Interest Rate | Compounding Frequency |
|---|---|---|
| Q4 FY 2023-24 (Jan–Mar 2024) | 8.2% p.a. | Annual |
| Q1 FY 2024-25 (Apr–Jun 2024) | 8.2% p.a. | Annual |
| Q2 FY 2024-25 (Jul–Sep 2024) | 8.2% p.a. | Annual |
| Q3 FY 2024-25 (Oct–Dec 2024) | 8.2% p.a. | Annual |
| Q4 FY 2024-25 (Jan–Mar 2025) | 8.2% p.a. | Annual |
| Q1 FY 2025-26 (Apr–Jun 2025) | 8.2% p.a. | Annual |
| Q2 FY 2025-26 (Jul–Sep 2025) | 8.2% p.a. | Annual |
| Q3 FY 2025-26 (Oct–Dec 2025) | 8.2% p.a. | Annual |
| Q4 FY 2025-26 (Jan–Mar 2026) | 8.2% p.a. | Annual |
| Q1 FY 2026-27 (Apr–Jun 2026) | 8.2% p.a. | Annual |
| Q2 FY 2026-27 (Jul–Sep 2026) (Current) | 8.2% p.a. | Annual |
Under official scheme rules, monthly interest is calculated on the lowest balance between the close of the 5th day and the end of the month, and credited annually on 31 March. To earn interest on a new deposit for that calendar month, ensure it clears on or before the 5th. A credit on the 6th does not increase that month's interest-bearing balance; any amount already in the account from earlier still earns interest.
Eligibility Rules & Account Guidelines
| Criterion | Statutory Rule |
|---|---|
| Eligible Depositor | Natural parent or legal guardian of a girl child |
| Girl Child Age Limit | Below 10 years at the time of account opening |
| Residency Requirement | The girl child must be a resident Indian citizen at the time of opening |
| Accounts per Family | Maximum 2 accounts per family (one per girl child) |
| Special Twins / Triplets Exception | More than two accounts may be opened only if extra girl children are born in the first and/or second order of birth (twins/triplets), on an affidavit plus birth certificates (SSA Scheme 2019, para 3). Second proviso: if the first birth already produced two or more surviving girl children, a girl from a later birth does not get another account |
| Later NRI / Non-Resident Status | A new account cannot be opened for an NRI girl child. If the girl child or guardian later becomes NRI, the account may continue till maturity on a non-repatriation basis and cannot be extended beyond 21 years (Government Savings Promotion General Rules, 2018, rule 4(3), as applied to SSA Scheme 2019). The older 2016 “deemed closure on becoming NRI” rule does not apply to accounts under the 2019 scheme. |
Key Regulatory Updates (2024–2026 Guidelines)
- Regularization of Grandparent Accounts: In July–August 2024 (DEA OM dated 12 July 2024; SB Order 05/2024 dated 21 August 2024), the Ministry of Finance directed that any SSY account opened under the guardianship of grandparents who are not the legal guardian must have guardianship transferred to the natural parent (if alive) or legal guardian. Extra accounts beyond two (except the multiple-birth proviso) are treated as irregular and closed. Transfer of guardianship is the regularisation path; interest is not automatically forfeited solely because a grandparent opened the account.
- Operation after Age 18: The guardian operates the account until the girl child turns 18. After that, she operates it herself after submitting fresh KYC documents and her signature to the bank or post office. The switch is not automatic without those documents.
- Nationwide Transferability: An SSY account can be transferred anywhere in India — post office to post office, post office to an authorised bank, or bank to bank — generally without a transfer fee.
Deposit Rules, Limits & Default Penalties
| Parameter | Limit / Condition |
|---|---|
| Minimum Deposit (per FY) | â‚ą250 |
| Maximum Deposit (per FY) | â‚ą1,50,000 (deposits beyond â‚ą1.5L earn zero interest and are refunded) |
| Deposit Duration | 15 years from the date of account opening |
| Post-Deposit Period | From Year 16 to Year 21, no deposits are required; the balance continues to compound at the notified SSY interest rate |
| Default Consequence | If the minimum â‚ą250 is not deposited in any financial year, the account becomes an account under default |
| Revival Penalty | Defaulted accounts can be regularised before maturity by paying a penalty of â‚ą50 per defaulted year plus the minimum deposit of â‚ą250 for each lapsed year |
Deposits can be made in lump sums or multiple installments throughout the financial year. Many parents choose to invest the full â‚ą1.5 lakh in the first week of April to maximise compound interest for the entire 12-month cycle.
How Much Will You Get? SSY Maturity Calculator
The final corpus depends on the annual deposit amount. The table below assumes a lump-sum deposit at the start of each financial year (on or before 5 April) at a constant 8.2% per annum for 15 contribution years and a 21-year total tenure. Actual maturity will differ if rates change or if you deposit monthly.
| Annual Deposit | Total Invested (15 Years) | Total Interest Earned | Maturity Value (After 21 Years) | Tax on Maturity |
|---|---|---|---|---|
| â‚ą12,000 | â‚ą1,80,000 | ~â‚ą3,95,000 | ~â‚ą5.75 Lakh | Zero |
| â‚ą50,000 | â‚ą7,50,000 | ~â‚ą16,44,000 | ~â‚ą23.94 Lakh | Zero |
| â‚ą1,00,000 | â‚ą15,00,000 | ~â‚ą32,88,000 | ~â‚ą47.88 Lakh | Zero |
| â‚ą1,50,000 (Maximum) | â‚ą22,50,000 | ~â‚ą49,32,000 | ~â‚ą71.82 Lakh | Zero |
A true ₹1,000-per-month SIP for 15 years (then 6 years of compounding) at 8.2% is closer to ₹5.50–5.54 lakh, not ₹5.75 lakh, because money does not sit for the full year in the same way as an April lump sum.
A common misconception is that an SSY account matures when the girl child turns 21 years old. Under paragraph 9 of the Sukanya Samriddhi Account Scheme, 2019, the account matures 21 years from the date of account opening, not based on the girl's biological age.
• If opened at birth (age 0), the account matures when she turns 21.
• If opened when the daughter is 8 years old, the account matures when she turns 29.
In both cases, the money compounds for the full 21 years (15 years of deposits + 6 years of interest accumulation). Starting at birth is ideal because the payout naturally coincides with graduation or post-graduate college admission (~age 21–22).
If the account is not closed on maturity, the eligible balance typically continues to earn interest at the Post Office Savings Account rate until closure — not the SSY rate.
Tax Benefits: New vs. Old Tax Regime
Sukanya Samriddhi Yojana operates under the EEE (Exempt-Exempt-Exempt) framework. With the Income Tax Act, 2025 effective from 1 April 2026 (Tax Year 2026-27), taxpayers must understand how the choice of tax regime affects their benefits:
1. Annual Contributions (Deposits)
- Old Tax Regime: Deposits qualify for an income tax deduction up to â‚ą1.5 lakh per financial year under Section 123 of the Income Tax Act, 2025, read with Schedule XV (formerly Section 80C of the 1961 Act). The â‚ą1.5 lakh cap is shared with other eligible investments (PPF, ELSS, life insurance, etc.).
- New Tax Regime (Default): No deduction is available for contributions. Taxpayers who opt for the new regime do not receive an upfront tax deduction on their SSY deposits.
2. Annual Accrued Interest
- Both Regimes: The notified SSY interest is 100% tax-free every year. No Tax Deducted at Source (TDS) applies, and interest does not need to be added to taxable income under either regime.
3. Maturity & Withdrawal Proceeds
- Both Regimes: Interest and withdrawals from a Sukanya Samriddhi account remain fully exempt. Under the 1961 Act this was Section 10(11A); under the Income Tax Act, 2025, the same exemption is continued in the Section 11 / schedule framework. The entire maturity amount (principal plus accumulated interest) is completely exempt from income tax, whether you file under the old or new regime.
SSY Withdrawal & Closure Rules
1. Partial Withdrawal (For Higher Education)
- Eligibility Timing: Allowed once the girl child reaches 18 years of age OR passes the 10th standard, whichever occurs earlier (SSA Scheme 2019, para 8).
- Permissible Limit: The lower of (a) 50% of the account balance at the close of the preceding financial year, and (b) the actual fees and other charges shown on the admission offer / fee slip.
- Purpose: Higher education of the account holder only.
- Supporting Documents: Verified admission offer letter and fee schedule from a recognised educational institution.
- Disbursement: Can be received in a single lump sum or in up to 5 annual instalments.
2. Maturity Closure (After 21 Years)
- Upon completion of 21 years from the date of account opening (para 9), the entire account balance (principal plus accrued interest) becomes payable to the girl child on Form-4, with the passbook and proof of identity.
3. Premature Closure Rules
Unlike standard fixed deposits, Sukanya Samriddhi Yojana does not permit voluntary premature closure at will. Under paragraph 7 of the 2019 scheme (death and compassionate grounds) and paragraph 9(2) (marriage), premature closure is permitted only in these cases:
| Situation | Conditions & Documentation | Interest Rate Applied |
|---|---|---|
| Demise of Account Holder (para 7(1)–(2)) | Closed on Form-2 with a death certificate. Balance plus SSY interest till the date of death is paid to the guardian. | Full SSY rate up to the date of death; Post Office Savings Account rate from the date of death until disbursement. |
| Extreme Compassionate Grounds (para 7(3)) | Allowed only after 5 years from account opening, where continuation would cause undue hardship — typically life-threatening illness of the girl child, or death of the guardian. Reasons must be recorded in writing by the accounts office. | Full SSY scheme rate. |
| Marriage of the Girl Child (para 9(2)) | Girl must be at least 18 on the date of marriage. Closure is not allowed more than one month before the intended marriage or more than three months after the marriage. Notarised declaration on non-judicial stamp paper plus proof of age is required. | Full SSY scheme rate up to the date of closure. |
Note: Completing five years does not create a general right to close the account. Unauthorised withdrawals are not permitted.
SSY vs. PPF vs. Children's Equity Mutual Funds
Parents evaluating long-term savings options for their daughter often compare SSY with other tax-saving instruments:
| Parameter | Sukanya Samriddhi Yojana (SSY) | Public Provident Fund (PPF) | Children's Equity Mutual Fund |
|---|---|---|---|
| Returns / Interest | 8.2% p.a. (Govt notified; joint-highest with SCSS) | 7.1% p.a. (Govt notified) | 12%–15% (Market-linked, not guaranteed) |
| Sovereign Guarantee | Yes (100% safe) | Yes (100% safe) | No (Subject to market risk) |
| Tax Status | Full EEE (Maturity 100% tax-free) | Full EEE (Maturity 100% tax-free) | LTCG taxed at 12.5% above â‚ą1.25L/yr |
| Lock-in Period | 21 years from opening (or marriage after 18) | 15 years (extendable in 5-year blocks) | None (or 5-year lock-in for solution funds) |
| Deposit Duration | 15 years only | 15 years (required every year) | Flexible SIP |
| Eligibility | Only girl children below 10 years | Any resident Indian | Any resident or NRI |
| Partial Withdrawal | Up to 50% after age 18 or 10th pass, for education fees | Available from Year 7 onwards | Anytime (subject to exit load) |
Key Takeaway: For a risk-free, sovereign-backed foundation dedicated to a daughter's education, SSY currently offers the joint-highest notified small-savings rate in India (tied with SCSS). Many families combine an SSY allocation (for guaranteed, tax-free capital) with an equity SIP (to address higher educational inflation over a 15-year horizon).
How to Open an SSY Account
You can open an SSY account at any India Post branch or authorized public/private commercial bank, including State Bank of India (SBI), Bank of Baroda, Punjab National Bank, Canara Bank, HDFC Bank, ICICI Bank, and Axis Bank.
Required Documentation:
- Birth Certificate of the girl child (mandatory).
- Identity Proof of the parent or legal guardian (Aadhaar Card, PAN Card, Passport, or Voter ID).
- Address Proof of the parent or legal guardian (Aadhaar, utility bill, or passport).
- Passport-size photographs of the child and guardian.
- SSY Account Opening Form (Form-1, available at the branch or online).
- For a third (or further) account under the twins/triplets proviso: affidavit plus birth certificates. This does not apply to a later-born girl if the first birth already produced two or more surviving girls.
Once opened, the initial deposit (minimum â‚ą250) can be paid via cash, cheque, or net banking. Most major banks enable automated monthly or annual transfers directly into the SSY account via standing instructions or online banking.
Frequently Asked Questions (FAQ)
What is the SSY interest rate in 2026?
The Sukanya Samriddhi Yojana interest rate for July–September 2026 (Q2 FY 2026-27) is 8.2% per annum, compounded annually. The Ministry of Finance reviews the rate quarterly. It has been held at 8.2% since January 2024, making SSY joint-highest among government small savings schemes (tied with SCSS). Q3 FY 2026-27 had not been notified as of 22 September 2026.
How much will I get if I invest Rs. 1.5 lakh per year in SSY?
Investing the maximum â‚ą1,50,000 per year for 15 years at a constant 8.2% interest rate, deposited at the start of each year, yields an estimated maturity corpus of approximately â‚ą71.82 lakh after 21 years. Total investment is â‚ą22.5 lakh; estimated tax-free interest is about â‚ą49.32 lakh. Actual payout depends on future notified rates.
When does a Sukanya Samriddhi account mature (the 21-year rule)?
Under paragraph 9 of the Sukanya Samriddhi Account Scheme, 2019, an SSY account matures 21 years from the date of account opening, not when the girl child turns 21. If an account is opened when the daughter is 7 years old, it matures when she turns 28, unless closed earlier on marriage after age 18.
Is Sukanya Samriddhi Yojana tax-free under the New Tax Regime?
Yes, the interest earned and final maturity proceeds are 100% tax-free under both the new and old tax regimes. The annual contribution deduction up to â‚ą1.5 lakh under Section 123 of the Income Tax Act, 2025 (formerly Section 80C) is available only under the Old Tax Regime.
Can I withdraw money from SSY before 21 years?
Partial withdrawal for higher education — the lower of 50% of the preceding financial year's closing balance and actual admission fees — is permitted once the girl child turns 18 or completes the 10th standard, whichever is earlier. Premature closure is permitted only on the girl's death, extreme compassionate grounds after five years, or marriage after age 18.
Is Sukanya Samriddhi Yojana better than PPF?
For a girl child's dedicated savings goal, SSY currently provides a higher notified return (8.2% vs. PPF's 7.1%) with the same tax-free maturity status. PPF offers broader liquidity (partial withdrawals from Year 7), is open to all resident individuals, and can be extended in 5-year blocks.
Who can open a Sukanya Samriddhi Yojana account?
A natural parent or legal guardian can open an account in the name of a girl child who is a resident Indian and under 10 years of age. A family may open a maximum of two accounts (one per daughter). More than two accounts are allowed only where extra girl children are born in the first and/or second order of birth (twins/triplets), with an affidavit and birth certificates. If the first birth already produced two or more surviving girls, a girl from a later birth does not get another account.
Related Guides & Calculators
- Compare SSY with PPF using our PPF Calculator Guide (PPF, like SSY, uses monthly lowest-balance interest calculation with annual compounding).
- Compare fixed-income options with our FD Maturity Calculator Guide.
- Evaluate market-linked retirement planning in our NPS Calculator Guide.
- Explore equity tax-saving alternatives in our ELSS Mutual Funds Guide 2026.
Sources & Official References
| Authority | Reference Description | Official Portal |
|---|---|---|
| Ministry of Finance / DEA | Sukanya Samriddhi Account Scheme, 2019; quarterly small-savings rate notifications | nsiindia.gov.in |
| Department of Posts | National Savings Schemes, SB Order 05/2024 (irregular-account regularisation) | indiapost.gov.in |
| Income Tax Department | Deductions under the Income Tax Act, 2025 (Section 123 / Schedule XV) and exemptions corresponding to former Section 10(11A) | incometaxindia.gov.in |
Disclaimer: This article is prepared strictly for informational and educational purposes and does not constitute financial or investment advice. Government interest rates and scheme guidelines are subject to periodic revision by the Ministry of Finance. Please consult official government notifications and your authorized bank or post office before making financial commitments.
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