How Sukanya Samriddhi Yojana works
Sukanya Samriddhi Yojana (SSY) is a government-backed small savings scheme launched under the Beti Bachao, Beti Padhao initiative. It is designed exclusively for the education and marriage expenses of girl children.
Key mechanics:
- Account opening window: birth to age 10 of the girl child.
- Deposit period: 15 years from account opening. After year 15, no new deposits are accepted — the existing balance earns interest for the remaining 6 years.
- Maturity: 21 years from the date of account opening (regardless of when deposits stop).
- Interest: compounded annually at the government-notified rate (8.2% as of Q1 FY 2026-27).
- Compounding method: deposit is considered made at the start of the year; interest accrues on (opening balance + deposit) for that year.
This calculator faithfully models this annual compounding, with deposits in years 1–15 and growth-only accumulation in years 16–21.
Eligibility rules
| Rule | Detail |
|---|---|
| Who can open | Parent or legal guardian of a girl child |
| Girl’s age at opening | 0 to 10 years |
| Accounts per family | Maximum 2 (one per girl child); exception for twin/triplet girls |
| Minimum deposit per year | ₹250 |
| Maximum deposit per year | ₹1,50,000 |
| Deposit period | 15 years from account opening |
| Account maturity | 21 years from account opening |
Tax treatment — EEE status
SSY is one of only a handful of instruments in India with full EEE (Exempt-Exempt-Exempt) tax status:
- Exempt on contribution: Annual deposits are deductible under Section 80C up to ₹1,50,000 per financial year (combined with other 80C instruments like EPF, ELSS, PPF).
- Exempt on accrual: Interest credited each year is not included in taxable income — unlike fixed deposits where annual interest is taxable.
- Exempt on maturity: The entire maturity amount is received tax-free.
For a taxpayer in the 30% tax slab depositing ₹1,50,000/year, the tax saving from Section 80C alone is ₹46,800/year (₹45,000 + 4% cess). Over 15 years, this adds up to ₹7,02,000 in tax savings on contributions alone.
See our Section 80C calculator to model the combined tax benefit.
Withdrawal rules
| Situation | Rule |
|---|---|
| Partial withdrawal for higher education | After girl turns 18; up to 50% of balance at end of previous FY; proof of admission required |
| Full premature closure for marriage | After girl turns 18; application window: 1 month before to 3 months after marriage; documentary proof required |
| Premature closure on death | Allowed at any time; balance paid to guardian |
| Premature closure for life-threatening disease | Allowed with supporting documentation |
| Normal maturity | Full balance at 21 years from account opening; girl child must be alive and KYC-verified |
Comparison with PPF
| Feature | Sukanya Samriddhi Yojana | PPF |
|---|---|---|
| Interest rate (Q1 FY 2026-27) | 8.2% | 7.1% |
| Tax status | EEE | EEE |
| Eligible investors | Girl child (parent/guardian) | Any individual (Indian citizen) |
| Maturity period | 21 years from opening | 15 years (extendable in 5-yr blocks) |
| Maximum deposit per year | ₹1,50,000 | ₹1,50,000 |
| Minimum deposit per year | ₹250 | ₹500 |
| Partial withdrawal | After girl turns 18 (50%) | After 7 years (limited amounts) |
| Premature closure | Limited (death, illness, marriage at 18+) | After 5 years (with penalty) |
| Accounts per person/family | 2 per family (one per girl child) | 1 per individual |
Key takeaway: SSY offers a higher rate than PPF and the same EEE tax treatment. If you have a daughter under 10, SSY is generally the better instrument for her-specific savings. PPF remains the go-to for all other long-term tax-efficient savings.
Bridges
- Section 80C calculator — calculate the annual tax saving on SSY deposits
- SIP calculator — project returns on equity mutual fund SIPs alongside SSY
- Lumpsum calculator — one-time investment projection
- Step-up SIP calculator — growing monthly SIP to supplement SSY savings