Sukanya Samriddhi Yojana (SSY): Interest Rate, Rules, Withdrawal and How to Open

Sukanya Samriddhi Yojana (SSY) is a government savings scheme for the future of a girl child, mainly her education and marriage costs. A parent or legal guardian opens the account in her name, deposits money for 15 years and receives the full amount, with interest, when the account matures. It is one of the highest-paying small savings schemes, and the interest and maturity amount are tax-free.

The key points

• The account can be opened for a girl who is below 10 years of age.
• You can deposit between ₹250 and ₹1.5 lakh in a financial year (April to March).
• Deposits are made for 15 years from the date of opening. The account matures 21 years after opening.
• The interest rate is set by the government every quarter. For October to December 2026 it is 8.2% a year.
• The interest and the maturity amount are not taxed.

SSY at a glance

Feature	What the rules say
Who can open	A natural or legal guardian (usually a parent) for a girl child who has not turned 10.
How many accounts	One account per girl. Generally a family can have accounts for two daughters. If the second birth is twins or triplets, an extra account is allowed so that every girl can have one.
Where	Any post office, or an authorised bank branch.
Minimum deposit	₹250 a year to keep the account active.
Maximum deposit	₹1,50,000 in a financial year. You can deposit in one go or in several instalments.
Deposit period	15 years from the date of opening.
Maturity	21 years from the date of opening.
Interest	Reset every quarter by the Ministry of Finance, compounded yearly. 8.2% for October to December 2026.

How the interest works

Interest is calculated every month on the lowest balance in the account between the 5th day and the end of that month, and it is added to the account at the end of the financial year. In simple words: deposit before the 5th of the month so that the money earns interest for that whole month. A deposit made on the 6th earns nothing for that month.

Interest is paid on the balance for the full 21 years, even though you stop depositing after year 15. The rate can change every quarter, so the final amount depends on the rates that apply through the years.

A worked example

This is a simple estimate. It assumes the rate stays at 8.2% for the whole period and that the year’s full deposit is made in April, before the 5th. Actual results will differ because rates change.

Deposit each year (15 years)	Total you deposit	Approximate balance at 21 years
₹12,000 (about ₹1,000 a month)	₹1.8 lakh	about ₹5.7 lakh
₹50,000	₹7.5 lakh	about ₹23.9 lakh
₹1,50,000	₹22.5 lakh	about ₹71.8 lakh

How to open an SSY account

You need these documents:

• The filled SSY account opening form (available at the post office or bank).
• The girl’s birth certificate as proof of age.
• The guardian’s identity and address proof such as Aadhaar. Some banks also ask for the guardian’s PAN, so ask first.
• Photographs, and the first deposit (minimum ₹250) by cash, cheque or draft.

1. Visit a post office or an authorised bank branch that offers SSY.
2. Fill in the form and attach the documents.
3. Make the first deposit and collect the passbook.
4. After that you can deposit at the branch, and many banks and the post office also allow online deposits through net banking or the India Post app.

Only the girl’s parent or legal guardian should open the account. Accounts opened by someone else, or beyond the permitted number of accounts, can be treated as irregular, so it is better to open it correctly the first time.

Withdrawals, closing the account and what happens at maturity

• Part-withdrawal for higher education. After the girl turns 18 or passes Class 10, whichever is earlier, you can withdraw up to 50% of the balance at the end of the previous financial year. You need proof of admission and the fee details. You can take it as a lump sum or in instalments (one per year, for up to five years).
• Closing the account for marriage. The account can be closed when the girl is at least 18 and is getting married. You apply from one month before to three months after the wedding.
• At maturity. At 21 years the full balance with interest is paid out. No interest is added after maturity.
• Taking over the account. After the girl turns 18, she operates the account herself after submitting her own KYC.
• Early closure. Allowed after 5 years only for specific reasons such as the death of the account holder or guardian, a life-threatening illness or severe hardship. Proof is required.

What if you miss a deposit?

If you do not deposit at least ₹250 in a financial year, the account becomes defaulted. You can revive it during the 15-year deposit period by paying a penalty of ₹50 for each missed year, plus the minimum ₹250 for each missed year. Set a yearly reminder so the deposit is never missed.

Tax on SSY

• The interest is exempt from income tax.
• The maturity amount is exempt from income tax.
• Your deposits qualify for a deduction up to ₹1.5 lakh a year (together with PPF, ELSS and other eligible items) only under the old tax regime. Under the new regime there is no deduction for deposits.

SSY compared with PPF

Both are tax-friendly government schemes with the same ₹1.5 lakh yearly limit. SSY currently pays a higher rate (8.2% against 7.1% for PPF) but is only for a girl child and runs for 21 years with limited withdrawals. PPF is open to any individual and has a 15-year term. A family with a daughter can use both, as each has its own ₹1.5 lakh limit. Read our guide to what PPF is and try the PPF calculator.

Sources

• India Post: Sukanya Samriddhi Account
• Angel One: small savings interest rates for October to December 2026
• Tata AIA: Sukanya Samriddhi Yojana explained

Last checked: 27 October 2026. Rates and rules can change, so confirm the latest details with your post office or bank before you act. This guide is general information, not financial advice.