What is Sukanya Samriddhi Yojana (SSY)?

Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme for the girl child in India. It aims to support education and marriage expenses and offers a high interest rate with tax benefits.

Who is eligible to open an SSY account?

Parents or legal guardians can open an SSY account for a girl child below 10 years of age. A maximum of two accounts is allowed for two different girls. It can be opened at any post office or authorized bank.

What is the minimum and maximum investment in SSY?

You can invest a minimum of ₹250 and up to ₹1.5 lakh annually in SSY. Contributions are required for 14 years, and the account matures 21 years after opening.

What is the interest rate on SSY?

As of 2025, the SSY interest rate is 7.6% per annum, compounded annually. The rate is set by the Government of India and revised quarterly.

Can I withdraw from SSY before maturity?

Partial withdrawal (up to 50%) is allowed after the girl turns 18, usually for education. Early closure is permitted under specific conditions like the account holder’s death.

Is the interest earned on SSY taxable?

No, the interest earned on SSY is completely tax-free. Contributions up to ₹1.5 lakh per year are eligible for tax deduction under Section 80C of the Income Tax Act.

What is the tenure of an SSY account?

SSY has a maturity period of 21 years from the date of opening. Contributions are mandatory only for the first 14 years; the account continues to earn interest until maturity.

Can I transfer my SSY account?

Yes, the SSY account can be transferred between post offices or authorized banks using a simple application form, maintaining the same account benefits.

Can the SSY account be a joint account?

No, joint accounts are not allowed. SSY accounts are single-holder accounts opened in the name of the girl child and operated by a parent or guardian.

What happens after SSY account maturity?

Upon maturity after 21 years, the account balance can be fully withdrawn by the account holder (the girl). The account can also remain open and earn interest without further deposits.

SSY Calculator - Sukanya Samriddhi Yojana Maturity Calculator

SSY - A Comprehensive Guide

What is Sukanya Samriddhi Yojana?

The Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme launched by the Indian government in 2015 as part of the ‘Beti Bachao Beti Padhao’ initiative. Its primary goal is to promote the welfare and financial security of the girl child by encouraging parents to save for their daughter’s future education and marriage expenses. It offers one of the highest interest rates among various small savings schemes in India.

Key Features of SSY

Eligibility: The account can be opened only for a girl child below the age of 10. Parents or legal guardians can open one account per girl child, with a maximum of two accounts for two girls (exception: more than two daughters in case of twin or triplet daughters).
Interest Rate: The interest rate is currently 8.0% per annum, compounded annually (subject to quarterly revision by the government).
Tenure: The maturity period is 21 years from the date of opening the account or until the girl child turns 21, whichever is earlier.
Contribution Limit: Minimum deposit of ₹250 per year and a maximum of ₹1.5 lakh per year.
Tax Benefits: Contributions qualify for tax deductions under Section 80C, and the interest earned and maturity proceeds are tax-free.
Partial Withdrawals: Partial withdrawals are allowed from the 18th year for education or marriage purposes.
Premature Closure: The account can be closed prematurely in case of the girl’s death or in certain medical emergencies.

How to Open an SSY Account

Visit the nearest post office or bank offering SSY scheme.
Fill out the application form with the girl child's birth certificate and identity proof of the guardian.
Deposit the minimum required amount (₹250 or more).
Complete the KYC (Know Your Customer) process by submitting identity and address proof documents.
Receive a passbook with your account details, which will help track deposits and interest.

Pros of SSY

High-Interest Rates: It offers one of the highest interest rates among government-backed savings schemes.
Tax-Free Returns: Both interest and maturity amount are completely tax-free, making it an attractive option.
Long-Term Security: SSY ensures that parents can save for their daughter’s future education or marriage over a long term.
Low Minimum Deposit: The minimum deposit requirement is very low, starting at just ₹250 annually.
Partial Withdrawals: Partial withdrawals for education or marriage can be made from the 18th year.

Cons of SSY

Limited to Girls: This scheme is available only for the girl child.
No Joint Accounts: The account cannot be opened jointly, which reduces flexibility.
Long Lock-In Period: The account has a lock-in period of 21 years, which means you cannot access the funds easily.
No Loan Facilities: SSY does not allow loans or overdrafts against the account.

Who Should Invest in SSY?

Parents of Girl Children: If you have a daughter under the age of 10, this scheme is perfect for securing her future.
Conservative Investors: If you're looking for a safe, government-backed investment option, SSY is ideal.
Tax-Conscious Investors: If you are looking for a tax-saving option, SSY offers excellent tax benefits under Section 80C.

Conclusion

The SSY is one of the best schemes for ensuring the future financial security of your daughter. It combines high returns, tax benefits, and long-term savings with the security of a government-backed investment. It’s one of the best options available for parents to invest in their girl child’s future.

By contributing to this scheme, you not only build a financial cushion for her education and marriage but also take an important step toward empowering the girl child in India.

Sukanya Samriddhi Yojana Calculator