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Guide · Investments & Loans

Sukanya Samriddhi Yojana —
8.2% for Your Girl Child

The current SSY interest rate, EEE tax benefits under Section 80C, eligibility, deposit and maturity timeline, partial withdrawal rules and how SSY compares with PPF.

TaxClue Editorial Desk Updated 18 August 2026 4 min read 14 FAQs answered
Updated for FY 2026-27 8.2% p.a. · EEE tax-free Girl-child savings scheme
Quick Answer

Sukanya Samriddhi Yojana is a government-backed small-savings scheme for a girl child, currently earning 8.2% per annum (Q2 FY 2026-27, compounded annually). An account can be opened for a girl below 10 years; you deposit Rs250 to Rs1.5 lakh a year for 15 years and it matures 21 years from opening. It carries full EEE tax status — deposits qualify for Section 80C (up to Rs1.5L, old regime), and interest and maturity are exempt.

Interest rate 8.2%
Tax status EEE
Deposit period 15 yrs
Maturity 21 yrs
At a glance

SSY Key Facts — FY 2026-27

Every core rule of the Sukanya Samriddhi Yojana in one table, current for FY 2026-27.

ParameterDetails
Current interest rate8.2% p.a. (Q2 FY 2026-27, Jul–Sep 2026)
CompoundingAnnually, credited on 31 March
Minimum depositRs250 per year
Maximum depositRs1,50,000 per year
Deposit period15 years from account opening
Maturity21 years from account opening
EligibilityGirl child below 10 years (resident Indian)
Who can openNatural or legal guardian of the girl child
Accounts per family2 (one per girl); 3 if second birth is twins/triplets
Tax statusEEE — 80C on deposit, interest & maturity exempt
Partial withdrawalUp to 50% of balance after girl turns 18, for education/marriage

Small-savings rates are reviewed by the Ministry of Finance each quarter; verify the current rate before you invest.

EEE explained

Tax Benefits of Sukanya Samriddhi Yojana

SSY enjoys the best possible tax treatment in India — Exempt-Exempt-Exempt (EEE). Each of the three stages is tax-free:

  • Deposit — qualifies for Section 80C deduction up to Rs1,50,000 a year (shared with other 80C investments).
  • Interest — the annual interest credited is fully exempt under Section 10(11A).
  • Maturity — the entire maturity amount (principal + interest) is 100% tax-free.
Section 80C only helps in the OLD tax regime

The 80C deduction on SSY deposits is available only if you file under the old tax regime. Under the new regime (the default from FY 2023-24), 80C is not allowed — though the interest and maturity of SSY stay tax-exempt regardless of the regime you choose.

Not sure which regime saves you more with SSY and other 80C investments?

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Who & when

Eligibility, Deposits & Withdrawal

The account is opened by a parent or legal guardian for a girl child who is a resident Indian. Key conditions:

  • Girl child must be below 10 years of age at account opening.
  • A family can open up to two accounts (one per girl); a third is allowed only if the second birth produces twins/triplets.
  • NRIs are not eligible; if the girl becomes an NRI later the account must be closed.
  • Deposits are made for the first 15 years; the balance keeps earning interest until the 21-year maturity.
Open accountGirl below age 10
→
Deposit 15 yearsRs250–Rs1.5L/year
→
Earn to year 21Interest continues, no deposit
→
MaturityFull amount tax-free
Partial withdrawal & premature closure

You can withdraw up to 50% of the previous year-end balance once the girl turns 18 (or clears Class 10), for higher-education or marriage expenses. Full premature closure is allowed on the girl's marriage after 18, and — on compassionate grounds such as death of the holder or medical emergency — after 5 years from opening.

Compare

SSY vs PPF — Which Should You Pick?

Both are EEE small-savings schemes with a Rs1.5 lakh annual cap, but they differ on rate, eligibility and lock-in. SSY currently pays a higher rate but is restricted to a girl child.

8.2%

Sukanya Samriddhi (SSY)

  • Only for a girl child below 10
  • Deposit 15 years, matures at 21
  • Higher interest of the two
  • EEE · 80C · interest & maturity exempt
  • Best for dedicated girl-child savings
vs
7.1%

Public Provident Fund (PPF)

  • Open to any resident Indian
  • 15-year term, extendable in 5-yr blocks
  • Partial withdrawal from year 7
  • EEE · 80C · interest & maturity exempt
  • Best for general tax-free savings

SSY's roughly 1.1% higher rate compounds into a meaningful gap over 21 years, so for a girl child it is usually the stronger choice — while a PPF account remains the flexible all-purpose option. Compare your own numbers with our PPF calculator.

Want SSY and PPF built into a full 80C tax-saving plan?

Talk to a Tax Expert →
Government sourcesScheme & forms: nsiindia.gov.in (National Savings Institute) · India Post small savings: indiapost.gov.in · Rules: Sukanya Samriddhi Account Scheme, 2019 (Govt. Savings Promotion Act) · Tax exemption: Section 80C & Section 10(11A), Income-tax Act 1961
People also ask

Frequently Asked Questions

Interest & Returns
What is the SSY interest rate for 2026-27?
The Sukanya Samriddhi Yojana interest rate for Q2 FY 2026-27 (July–September 2026) is 8.2% per annum, compounded annually. The Ministry of Finance reviews small-savings rates every quarter, and the SSY rate has stayed at 8.2% since April 2024. Interest is credited to the account at the end of each financial year on 31 March.
How is SSY interest calculated?
Interest is calculated on the lowest balance in the account between the close of the 5th day and the end of each month, and is compounded annually. The full year's interest is credited on 31 March. To maximise interest, deposit early in the financial year (ideally before the 5th of April) so the whole amount earns interest for the full year.
Is SSY better than PPF?
For a girl child, SSY usually gives higher returns because its current rate (8.2%) is above PPF's (7.1%), and both are EEE and tax-free. However, SSY can only be opened for a girl below 10 and locks in until she is 21. PPF is open to anyone, has a 15-year term extendable in 5-year blocks, and allows partial withdrawal from the 7th year, making it the more flexible general-purpose option.
Eligibility
Who can open a Sukanya Samriddhi account?
A natural or legal guardian can open an SSY account for a resident-Indian girl child who is below 10 years of age at the time of opening. Only one account is allowed per girl child, and a family can hold a maximum of two SSY accounts (a third is permitted only if the second birth results in twins or triplets).
Can an NRI open a Sukanya Samriddhi account?
No. NRIs cannot open an SSY account — both the guardian and the girl child must be resident Indians. If the girl becomes an NRI after the account is opened, the account has to be closed and the balance is paid out; interest generally stops accruing from the date her residential status changes.
How many SSY accounts can one family open?
A family can open a maximum of two SSY accounts — one for each girl child. A third account is allowed only in the special case where the second birth produces twins or triplets (or the first birth itself produces triplets), so more than one eligible girl child exists.
Deposits
What is the minimum and maximum SSY deposit?
The minimum deposit is Rs250 in a financial year and the maximum is Rs1,50,000 in a financial year. If the minimum Rs250 is not deposited in a year, the account becomes inactive and can be revived by paying a Rs50 penalty plus the minimum deposit for each defaulted year. Deposits can be made in lump sum or in instalments.
For how many years do I need to deposit in SSY?
Deposits are required only for the first 15 years from the date of account opening. After that no further deposits are needed, but the balance continues to earn interest at the prevailing rate until the account matures 21 years from opening. This is why SSY keeps compounding for 6 more years after the last deposit.
Tax
What are the tax benefits of Sukanya Samriddhi Yojana?
SSY has full EEE tax status. Deposits qualify for a Section 80C deduction up to Rs1,50,000 a year (combined with other 80C investments), the annual interest is exempt under Section 10(11A), and the entire maturity amount is 100% tax-free. This makes it one of the most tax-efficient long-term savings instruments available.
Is the 80C benefit on SSY available in the new tax regime?
No. The Section 80C deduction on SSY deposits is available only under the old tax regime. Under the new regime (the default since FY 2023-24), 80C deductions are not allowed. However, the interest and maturity of SSY remain fully tax-exempt regardless of which regime you choose, so the scheme is still attractive under the new regime for its returns.
Withdrawal
Can I withdraw from SSY before maturity?
Partial withdrawal of up to 50% of the previous financial year-end balance is allowed once the girl turns 18 or passes Class 10, for higher-education or marriage expenses. Full premature closure is permitted on the girl's marriage after 18. Closure on compassionate grounds — such as death of the account holder or a life-threatening illness — is allowed after 5 years from opening.
When does an SSY account mature?
The account matures 21 years from the date of opening, regardless of the girl's age at that point. It can also be closed earlier for the girl's marriage after she turns 18. Deposits are made only for the first 15 years; the balance then compounds until the 21-year maturity, when the full amount is paid out tax-free.
Opening
Where can I open a Sukanya Samriddhi account?
You can open an SSY account at any post office (India Post) or at authorised branches of most banks — including SBI, HDFC Bank, ICICI Bank, Axis Bank, Bank of Baroda, PNB and Canara Bank. You need the girl's birth certificate, the guardian's identity and address proof (Aadhaar/PAN) and a photograph. Several private banks also allow online opening via net banking.
What documents are needed to open an SSY account?
You need the girl child's birth certificate, the guardian's identity proof (Aadhaar and PAN), the guardian's address proof, and passport-size photographs of both the guardian and the child. The account-opening form (Form-1) is filled at the bank or post office along with the initial deposit of at least Rs250.
If you would rather not do it yourself

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