Sukanya Samriddhi Yojana (SSY): A Simple Guide for Parents

Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme designed for a girl child’s future — typically her education or marriage. It offers one of the highest interest rates among small-savings schemes, along with generous tax benefits, which is why it’s so popular with parents.

How the scheme works

You open an account in the name of a girl child below the age of 10. You then deposit money for 15 years from the date the account is opened. The account matures 21 years after opening — so for the final six years you make no deposits, but the balance keeps earning interest. This is a key reason the maturity amount ends up much larger than what you put in.

Deposits and interest

• Minimum ₹250 and maximum ₹1.5 lakh can be deposited per financial year.
• One account per girl, up to two girls per family (with exceptions for twins/triplets).
• Interest is compounded annually; the current rate is 8.2% per annum.
• The rate is set by the government and reviewed each quarter.

The tax benefits

SSY enjoys Exempt-Exempt-Exempt (EEE) status — the same as PPF. Your deposits qualify for a deduction under Section 80C, and both the interest earned and the final maturity amount are completely tax-free. This combination of a high rate and no tax makes the effective return very attractive.

How the maturity is calculated

Because you deposit for 15 years and the money compounds for 21, a full-limit account grows substantially. For instance, depositing ₹1.5 lakh a year at 8.2% builds a maturity amount of roughly ₹72 lakh, of which about ₹49 lakh is interest. The exact figure depends on your yearly deposit and the interest rate over the years.

When you can withdraw

A partial withdrawal of up to 50% of the balance is allowed for the girl’s higher education after she turns 18. The account fully matures 21 years after opening, or on her marriage after age 18.

To estimate the maturity amount for your own deposits, use our Sukanya Samriddhi Yojana Calculator — enter your yearly deposit and the interest rate to see the total deposited, interest earned, and final maturity value.