How does Sukanya Samriddhi Yojana work?
Sukanya Samriddhi Yojana (SSY) is a government savings scheme for girls. A parent or guardian opens the account before the girl turns 10 and deposits money for 15 years. The account matures 21 years after it is opened. Interest is compounded once a year.
Worked example
SSY rules at a glance
- Interest rate: 8.2% a year for October to December 2026, reviewed by the government every quarter.
- Who can open: a parent or guardian, for a girl below 10. A family can open accounts for up to two daughters, or three in the case of twins or triplets.
- Deposits: at least ₹250 and at most ₹1,50,000 in a financial year, for 15 years from the date of opening.
- Withdrawals: up to 50% of the balance can be withdrawn for higher education once she turns 18 or passes Class 10.
- Tax: deposits qualify for the 80C deduction in the old regime, and interest and maturity amount are tax-free.
Frequently asked questions
Where can I open a Sukanya Samriddhi account?
At any post office or at authorised banks, including SBI and most large public and private sector banks. You'll need the girl's birth certificate and the parent's ID and address proof.
What if I miss a year's deposit?
The account becomes inactive. You can revive it by paying a ₹50 penalty for each missed year along with the minimum ₹250 deposit for each of those years.
Can the account be closed early?
Yes, when she marries after turning 18, or in special cases such as a life-threatening illness or the death of the account holder. The account can also be closed in other cases after 5 years, but interest is then paid at the savings account rate.
SSY or PPF: which is better for my daughter?
SSY currently pays a higher rate (8.2% compared with 7.1% for PPF) and both are tax-free. PPF is more flexible because you can use it for any goal and extend it, while SSY money is meant for the girl's education and marriage.