Savings / 6 min read
Sukanya Samriddhi Yojana (SSY): Returns, Rules and Tax Benefits
A practical guide to Sukanya Samriddhi Yojana: eligibility, deposits, maturity, tax treatment and where to verify the rate for the current quarter.
By Analyze Daily Team · Published 18 June 2026 · Updated 15 July 2026
Key takeaways
- SSY is a government small-savings scheme for a girl child; its interest rate is notified for each applicable quarter.
- It is fully tax-free (EEE) and qualifies for an 80C deduction.
- Open it before the girl turns 10; deposits run for 15 years and the account matures 21 years after opening.
- You can invest from ₹250 up to ₹1.5 lakh per financial year.
What SSY is and who can open it
Sukanya Samriddhi Yojana is a small-savings scheme designed to build a long-term corpus for a girl child's education and marriage. A parent or guardian opens and operates the account until the girl takes it over.
It is government-backed, but the long term and withdrawal restrictions mean it should be matched carefully to the family's goal.
- The account can be opened any time before the girl turns 10.
- One account is allowed per girl child, for a maximum of two girls per family.
- It can be opened at a post office or most authorised banks.
Interest rate and how it grows
The government notifies the SSY rate for each quarter, so an article can become stale quickly if it hard-codes a number. Verify the applicable rate in the latest small-savings memorandum from the Department of Economic Affairs.
Interest is compounded annually, and because the money stays invested for up to 21 years, compounding does a remarkable amount of the work.
Deposit and maturity rules
SSY has a clear structure that is worth understanding before you open it, because the deposit window and maturity date are different.
- You deposit for 15 years from opening, but the account matures 21 years after opening.
- Minimum ₹250 and maximum ₹1.5 lakh can be deposited per financial year.
- Partial withdrawal of up to 50% of the balance is allowed for higher education once the girl turns 18.
The tax benefits
SSY enjoys the most favourable tax status available — the exempt-exempt-exempt (EEE) treatment.
Your deposits qualify for an 80C deduction up to ₹1.5 lakh, the interest is tax-free, and the maturity amount is tax-free too.
Is SSY right for you?
For an eligible family, SSY can provide a government-backed long-term bucket for a daughter's future. That does not automatically make it the right destination for every rupee.
The main limitations are the long commitment, restricted withdrawals and eligibility conditions. Compare the goal date and need for flexibility before opening or funding the account.
Sources and review
How this guide was prepared
Material rules and regulated assumptions are checked against primary or first-party references. The page was last reviewed on 15 July 2026. If a rule or figure has changed, please report it through our corrections process.
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