About Sukanya Samriddhi Yojana
SSY is a government small-savings scheme for the girl child launched under Beti Bachao Beti Padhao. A parent or guardian can open an account at a post office or bank for a girl up to 10 years of age (maximum two girls per family, three in case of twins/triplets). It currently pays 8.2% per annum, the highest among government-guaranteed schemes, compounded yearly, with full EEE tax exemption.
Key rules
- Deposit ₹250 to ₹1,50,000 per financial year, for 15 years from opening.
- The account continues to earn interest without deposits until 21 years from opening, when it matures.
- Up to 50% of the balance can be withdrawn after the girl turns 18 (or passes class 10) for higher education.
- Premature closure is allowed on the girl's marriage after 18, or in case of death or serious illness.
- Interest for a month is paid on the lowest balance between the 5th and the end of the month, so deposit before the 5th.
Formula
With a fixed yearly deposit D made before 5 April, the balance after 15 deposits is D × [((1 + r)15 − 1) ÷ r] × (1 + r), and this then compounds for 6 more years: M = Balance15 × (1 + r)6.
Worked example
₹1,00,000 per year at 8.2% for a girl aged 3: total deposited ₹15,00,000 over 15 years; balance at year 15 ≈ ₹30.3 lakh; maturity at year 21 (girl aged 24) ≈ ₹47.9 lakh, of which ₹32.9 lakh is tax-free interest. At the maximum ₹1,50,000 per year the maturity is about ₹71.8 lakh. When the girl turns 18 (year 15), up to 50% — about ₹15 lakh — can be withdrawn for college fees.
SSY vs PPF for a daughter
- SSY: higher rate (8.2% vs 7.1%), 21-year lock-in tied to the girl's milestones, must be opened before age 10.
- PPF: 15-year term with flexible extension, available to anyone, more liquid via loans and withdrawals.
- Both share the ₹1.5 lakh Section 80C limit and are fully tax-free; many families use SSY for the daughter's education and PPF for their own retirement.
The rate is reviewed quarterly; this projection assumes it stays constant, so treat the figures as estimates.
Frequently Asked Questions
Until what age can an SSY account be opened?
Until the girl turns 10. The account matures 21 years after opening or on her marriage after 18.
Do I have to deposit for all 21 years?
No. Deposits are required for 15 years only; the balance keeps earning interest for the remaining 6 years.
Can money be withdrawn before maturity?
Yes — up to 50% after the girl turns 18 for higher education, and premature closure on marriage after 18.
Is SSY interest taxable?
No. Deposits qualify under Section 80C and both interest and maturity proceeds are fully exempt (EEE).
Disclaimer: This tool is for general information and estimation only. Tax rates and rules change — verify with official sources or a professional before acting. Read full disclaimer.