What is Sukanya Samriddhi Yojana (SSY)? Interest rate, eligibility, benefits and rules

In Summary

Sukanya Samriddhi Yojana is a long-term savings scheme introduced in 2015 under the Beti Bachao, Beti Padhao initiative. It is intended to support the financial needs of a girl child, including future education expenses.

• Current interest rate: 8.2% per annum for October–December 2026, compounded annually.
• Account-opening age: The girl child must be below 10 years old when the account is opened.
• Annual deposit: At least Rs. 250 and up to Rs. 1.5 lakh per financial year.
• Deposit period: Deposits can be made for 15 years from the account-opening date.
• Maturity: The account matures after 21 years from the date of opening, subject to the scheme rules.
• Education withdrawal: Up to 50% of the eligible balance may be withdrawn for higher education, subject to age, documentation and expense conditions.
• Account-opening locations: Authorised banks and post offices.
• Tax treatment: Interest and eligible payments are exempt under the applicable scheme provisions. The availability of a deduction for deposits depends on the tax rules and regime applicable to the taxpayer.

SSY has a long time horizon and restrictions on withdrawals. Understanding the deposit limits, maturity date, interest-rate revisions and tax rules can help families assess whether it fits their savings requirements.

The Sukanya Samriddhi Account interest rate is 8.2% per annum for the October–December 2026 quarter. The rate is notified by the Government of India and reviewed quarterly. It should not be assumed to remain unchanged throughout the account's tenure.

What is the current SSY interest rate?

Source: National Savings Institute's scheme-wise interest-rate table. Check the latest official notification before making a deposit or calculating future returns.

How is interest calculated under SSY?

Interest is calculated monthly on the lowest balance between the close of the fifth day and the end of the month. The interest is credited to the account at the end of the financial year. The account's interest rate is subject to government notification.

For this reason, the date on which a deposit is made may affect the interest credited for that month. Depositors should check the applicable rules and the account provider's process when planning contributions.

Does the SSY interest rate remain fixed for 21 years?

No. The government notifies the interest rate for specified periods, and the rate can change over time. The 8.2% rate applies to October–December 2026; it should not be used as a guaranteed rate for every future year until maturity.

A parent or legal guardian can open an SSY account in the name of a girl child who has not attained 10 years of age on the date the account is opened. The account is opened in the child's name and operated according to the scheme's rules.

What are the key eligibility conditions?

The main conditions are:

• The account must be opened for a girl child below 10 years of age.
• The account must be opened by a parent or legal guardian.
• Only one account is permitted for each eligible girl child.
• The family-level account limit generally applies to two girl children, subject to the specified multiple-birth exception.
• The account must be opened through an authorised bank or post office and meet the prescribed documentation requirements.

Eligibility should be confirmed with the selected bank or post office before submitting the application, especially where the family is seeking to use an exception to the usual account limit. 

Deposits can be made for 15 years from the account-opening date, while the account matures after 21 years from the account-opening date. These are two separate periods. Once the deposit period ends, the account can continue to earn interest according to the applicable scheme rules until maturity.

What happens after the 15-year deposit period?

After 15 years, no further deposits are permitted under the normal scheme rules. The balance already in the account continues under the scheme until maturity, unless a permitted withdrawal or closure applies. Interest remains subject to the notified rate and applicable rules.

Does the account mature when the girl turns 21?

The rule specifies maturity after 21 years from the account-opening date. This is not necessarily the same as the girl's 21st birthday, because the account may have been opened at any time before she turns 10. The account-opening date is therefore important when identifying the maturity date.

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An SSY account must receive at least Rs. 250 during each financial year. If the minimum is not deposited, the account is treated as being in default under the scheme rules.

How can a defaulted account be regularised?

The scheme permits a defaulted account to be regularised within the specified period by paying the minimum annual deposit for each defaulted year along with a penalty of Rs. 50 for each such year. The rules allow regularisation up to the completion of 15 years from the account-opening date.

If a deposit has been missed, the account holder or guardian should contact the account-opening institution to confirm the outstanding amount and the steps required to regularise the account.

SSY has favourable tax treatment under the applicable provisions, but the tax treatment of deposits should not be confused with the tax treatment of interest and payments from the account.

Are SSY interest and maturity proceeds tax-exempt?

The Income Tax Department's published tax guidance identifies payments from an account opened under the Sukanya Samriddhi Account Rules as exempt from tax. The scheme is commonly described as having exempt interest and exempt eligible payments.

Do SSY deposits qualify for a tax deduction?

Older scheme descriptions refer to deductions under Section 80C of the Income-tax Act, 1961. However, the Income-tax Act, 2025 came into effect on 1 April 2026, and the default tax regime has its own rules on deductions. A deduction should not be assumed to be available to every depositor merely because older SSY guidance refers to Section 80C.

The applicable deduction depends on the tax year, the relevant law and the taxpayer's chosen regime. Anyone planning a contribution partly for tax reasons should confirm the treatment under the applicable tax rules before claiming a deduction.

SSY has defined rules that can support long-term savings for a girl child. Its suitability depends on the family's time horizon, contribution capacity and need for access to the money.

Key features that may be useful

• Government-notified scheme: The scheme operates under government rules and notified interest rates.
• Long-term saving structure: Deposits can be made for 15 years, with maturity after 21 years.
• Annual compounding: Interest is credited annually according to the scheme rules.
• Flexible deposit timing: Contributions need not be monthly, provided the minimum annual deposit requirement is met.
• Specified education withdrawal: A limited withdrawal may be available for qualifying higher-education expenses.
• Tax treatment: Interest and eligible payments are exempt under the applicable scheme provisions.

What limitations should families consider?

• Age restriction: The account must be opened before the girl child turns 10.
• Long maturity period: The account matures 21 years after opening.
• Restricted access: Withdrawals and premature closure are subject to specific conditions.
• Annual contribution limits: Deposits must remain within the prescribed minimum and maximum.
• Changing interest rates: The rate is notified by the government and may change quarterly.
• Tax deduction conditions: The availability of a deduction depends on the applicable tax law and regime.

These conditions mean that SSY should be assessed as a long-term, rules-based savings account rather than a substitute for money that may be required at short notice.

Sukanya Samriddhi Yojana is a government-backed, long-term savings scheme for a girl child below 10 years of age. It allows deposits for 15 years and matures after 21 years from account opening. The current interest rate is 8.2% per annum for October–December 2026, but future rates may change. Families should understand the account's eligibility, deposit limits, withdrawal conditions and tax treatment before deciding whether it fits their savings needs.