SSY Details

₹/yr

%

yrs

SSY Maturity

Maturity Amount
₹69.80 L
Total Invested₹21.00 L
Interest Earned₹48.80 L
Account Matures At Age21 years

Invested
Interest

Sukanya Samriddhi Yojana — Why It's Special

SSY is exclusively for girl children (under 10 years at opening). Highest tax-free interest rate among Indian small-saving schemes. Sovereign-backed. Section 80C deduction + EEE tax treatment makes it unbeatable for daughters' future planning.

FeatureDetail (FY 2025-26)
EligibilityGirl child below 10 years (Indian resident)
Interest Rate8.2% per annum (Q3 FY25)
Account Tenure21 years from opening
Deposit Period15 years (then balance earns interest for next 6 years)
Annual Min/Max₹250 / ₹1.5 lakh
Section 80CUp to ₹1.5L deductible (Old Regime)
Maturity TaxFully tax-free (EEE status)
Maximum AccountsPer family: 2 (one per girl). Twins allowed as 3rd account.
Premature ClosureAfter 5 years for life-threatening illness, marriage, or marriage of girl after 18
Where to OpenPost Office, SBI, BoB, PNB, Canara Bank, Union Bank, IDBI, ICICI, Axis, HDFC, etc.

SSY vs Other Child Savings Schemes

SchemeInterestTaxSuitability
Sukanya Samriddhi Yojana8.2%EEEBest for daughters under 10
PPF7.1%EEEFor any child (gender-neutral)
Equity Mutual Fund SIP10-12% expectedLTCG 12.5%Long horizon (15+ yr) any gender
Education Insurance Plans4-6% returnLock-in heavyGenerally poor; consider term + MF instead
NSC (in minor's name)7.7%Slab on interest5-year fixed; complicated
Fixed Deposit (Minor)6-7%SlabShort-term; flexible
Strategy for Daughters: Open SSY at birth + run a parallel equity SIP. SSY provides guaranteed tax-free corpus by age 21 (for education/marriage). Equity SIP for higher growth (university abroad, business start-up).

SSY Worked Examples

Example 1: ₹50,000/year for 15 Years at 8.2%

Total invested = ₹7.5 lakh (over 15 years). Account closes after 21 years from opening. Final maturity (with 6-year compounding tail): approximately ₹25-26 lakh tax-free.

Example 2: ₹1,50,000/year (Maximum) for 15 Years

Total invested = ₹22.5 lakh. Final maturity at age 21: approximately ₹74-77 lakh tax-free. Perfect for daughter's higher education or marriage corpus.

Example 3: Late Start (Daughter age 9, 1-year window)

Can open account before her 10th birthday. Deposit period: 15 years from opening (account remains active until her 30th birthday). Even shorter contribution windows still produce meaningful tax-free corpus.

SSY Withdrawal Rules

  1. Age 18 — Partial Withdrawal: Up to 50% of preceding year's balance for higher education (must furnish admission proof, fee structure).
  2. Age 18 — Premature Closure: For girl's marriage. Account closes; full balance paid out.
  3. Age 21 — Maturity: Full balance paid; account closed automatically.
  4. Other Premature Closure (after 5 years): For life-threatening illness of account holder or guardian's death.

More FAQs

Can I open SSY for adopted daughter?

Yes — produce legal adoption papers. The girl must still be below 10 years at opening. Adopted daughter has equal rights as biological.

What if I miss a year's deposit?

Account becomes "irregular". Revive by depositing minimum ₹250 + ₹50 penalty per defaulted year. Don't let it lapse too long; reactivation has limits.

Can NRI parents open SSY for Indian-born daughter?

Yes if daughter is Indian resident. If daughter becomes NRI after account opening, no new deposits; balance earns interest till maturity.

How is SSY interest calculated?

Annual compounding. Like PPF, interest depends on minimum balance between 5th and end of month. Best practice: deposit annually in April for maximum interest.

Can I have BOTH SSY and PPF for same daughter?

Yes — but the ₹1.5L combined annual 80C limit applies across all your investments (SSY + PPF + ELSS + LIC etc). Allocate based on goals.

Is SSY available in New Tax Regime?

You can invest, earn tax-free interest, and receive tax-free maturity. BUT the ₹1.5L Section 80C deduction is NOT available in New Regime. SSY's value drops significantly for new-regime taxpayers.

What documents needed to open SSY?

Birth certificate of daughter (proof of age below 10), PAN/Aadhaar of guardian, photo, address proof, KYC. Pre-printed SSY-1 form from bank/post office.

Can I close SSY voluntarily before maturity?

No — only for the four specified reasons (girl's marriage 18+, daughter/guardian's death, life-threatening illness, change in resident status to NRI). Otherwise, account stays till 21 years.