Tax benefits of Sukanya Samriddhi Yojana
1. Deduction under Section 80C:
Investments in SSY are eligible for tax deductions up to Rs. 1.5 lakh per year, reducing your taxable income.
2. Tax-free interest:
The interest earned on your SSY account is completely exempt from income tax.
3. Exempt-Exempt-Exempt (EEE) status:
This means the invested amount, interest earned, and maturity amount are all tax-free.
4. Tax-free withdrawals:
Partial withdrawals for education and medical purposes (after the girl child turns 18) are also exempt from tax.
Sukanya Yojana interest rates 2026
The Sukanya Samriddhi Yojana interest rate is fixed by the government and reviewed every quarter. The Sukanya Samriddhi Yojana interest rate for 2025 is 8.2%.
| SSY Interest Rate | 8.2% p.a.(w.e.f 01.01.2025 to 31.03.2025). |
| Investment Amount | Minimum - Rs.250; Maximum Rs.1.5 lakh p.a. |
| Maturity Amount | It depends on the amount invested |
| Maturity Period | 21 years |
Bajaj Finance FD offers consistent returns unaffected by any change in the market conditions—making it a reliable investment for predictable growth. Open a Bajaj Finance FD and earn up to 7.75% p.a. returns.
Sukanya Samriddhi Yojana (SSY) interest rates
| Time Period | SSY Interest Rate (% annually) |
| Jan to Mar 2026 (Q4 FY 2025-26) | 8.2 |
| Oct to Dec 2025 (Q3 FY 2025-26) | 8.2 |
| Jul to Sep 2025 (Q2 FY 2025-26) | 8.2 |
| Apr to Jun 2025 (Q1 FY 2025-26) | 8.2 |
| Jan to Mar 2025 (Q4 FY 2024 - 25) | 8.2 |
| Oct to Dec 2024 (Q3 FY 2024 - 25) | 8.2 |
| July to Sep 2024 (Q2 FY 2024-25) | 8.2 |
| Apr to Jun 2024 (Q1 FY 2024-25) | 8.2 |
| Jan to Mar 2023 (Q4 FY 2022-23) | 7.6 |
| Oct to Dec 2022 (Q3 FY 2022-23) | 7.6 |
| Jul to Sep 2022 (Q2 FY 2022-23) | 7.6 |
| Apr to Jun 2022 (Q1 FY 2022-23) | 7.6 |
| Jan to Mar 2022 (Q4 FY 2021-22) | 7.6 |
| Oct to Dec 2021 (Q3 FY 2021-22) | 7.6 |
| Jul to Sep 2021 (Q2 FY 2021-22) | 7.6 |
| Apr to Jun 2021 (Q1 FY 2021-22) | 7.6 |
| Jan to March 2021 (Q4 FY 2020-21) | 7.6 |
| Oct to Dec 2020 (Q3 FY 2020-21) | 7.6 |
| Jul to Sep 2020 (Q2 FY 2020-21) | 7.6 |
| Apr to Jun 2020 (Q1 FY 2020-21) | 7.6 |
| Jan to March (Q4 FY 2019-20) | 8.4 |
| Oct to Dec 2019 (Q3 FY 2019-20) | 8.4 |
| Jul to Sep 2019 (Q2 FY 2019-20) | 8.4 |
| Apr to Jun 2019 (Q1 FY 2019-20) | 8.5 |
| Jan to March 2019 (Q4 FY 2018-19) | 8.5 |
| Oct to Dec 2018 (Q3 FY 2018-19) | 8.5 |
| Jul to Sep 2018 (Q2 FY 2018-19) | 8.1 |
| Apr to Jun 2018 (Q1 FY 2018-19) | 8.1 |
| Jan to March 2018 (Q4 FY 2017-18) | 8.1 |
| Oct to Dec 2017 (Q3 FY 2017-18) | 8.3 |
| Jul to Sep 2017 (Q2 FY 2017-18) | 8.3 |
| Apr to Jun 2017 (Q1 FY 2017-18) | 8.4 |
If you're looking for an alternative to the Sukanya Samriddhi Yojana, consider a Bajaj Finance Child FD. Start investing in a Bajaj Finance Fixed Deposit right away to secure your child's future.
How to calculate interest on the Sukanya Samriddhi Yojana Scheme?
SSY interest is compounded annually using the formula:
A = P (1 + r/n) ^ nt
Where:
- P = Principal
- r = Rate of Interest
- n = Compounding frequency
- t = Number of years
Also Read: Ladli Laxmi Yojana
Eligibility criteria for opening SSY
- Girl child must be below 10 years.
- Only parents/guardians can open the account.
- One account per child (maximum two per family).
- Minimum deposit Rs. 250; maximum Rs. 1.5 lakh annually.
Documents Required for Sukanya Samriddhi Account
- Birth certificate of the girl child: The birth certificate is mandatory to verify the age and eligibility of the girl child for opening the Sukanya Samriddhi Account.
- Identity proof of parent or guardian: Valid identity proof, such as Aadhaar card, PAN card, voter ID, passport, or driving licence, is generally required for KYC verification.
- Address proof of parent or guardian: Documents like Aadhaar card, electricity bill, passport, bank statement, or driving licence may be submitted as residential address proof.
- Passport-size photographs: Recent passport-sized photographs of the parent or guardian and the girl child may be required during the account opening process.
- Duly filled application form: Applicants must submit the completed Sukanya Samriddhi Account opening form along with the required supporting documents and initial deposit amount.
How to invest in Sukanya Samriddhi Yojana
- Apply through authorized banks or post offices.
- Submit documents like:
- Birth certificate of the child.
- Parent/guardian’s ID & address proof.
- Other KYC documents like PAN, Voter ID.
How to pay for Sukanya Samriddhi Yojana online?
- Download and install the IPPB mobile application: To make online payments towards the Sukanya Samriddhi Yojana (SSY) account, users first need to download and install the India Post Payments Bank (IPPB) mobile app on their smartphone.
- Register and add bank account details: After installation, users must complete the registration process and transfer funds or link their preferred savings bank account with the IPPB application for smooth transactions.
- Link the Sukanya Samriddhi account: The SSY account details, including account number and registered information, should be added within the application to enable online deposits and account management features.
- Set up automatic payment instructions: Users can activate standing instructions or auto-debit facilities through the app to ensure timely and regular contributions towards the Sukanya Samriddhi account without manual payments every month.
What happens if you pay less or more for the Sukanya Samriddhi Yojana?
- Minimum annual deposit requirement: The Sukanya Samriddhi Yojana (SSY) account requires a minimum deposit of Rs. 250 in a financial year to keep the account active. Failure to maintain this minimum contribution may result in the account becoming inactive or defaulting.
- Penalty for non-maintenance: If the required minimum deposit is not made during a financial year, the account holder may need to pay a penalty of Rs. 50, along with the minimum contribution amount, to reactivate the account.
- Maximum deposit limit: The maximum amount that can be deposited in an SSY account during a financial year is Rs. 1.5 lakh. Deposits above this prescribed limit are not eligible for additional interest benefits.
- Excess deposit treatment: Any amount deposited beyond the maximum permissible limit does not earn interest under the scheme. The excess deposited amount can usually be withdrawn by the account holder as per applicable rules.
Rules for premature withdrawal from SSY account
You can request an early closure of the Sukanya Samriddhi account only in the following scenarios:
1. Marriage of the girl child:
If your daughter has reached 18 years and is getting married, you can apply for premature closure. This request must be made within one month before or three months after the wedding, accompanied by age-proof documents. You can withdraw up to fifty percent of the balance from the preceding financial year without incurring any tax implications.
2. Demise of the girl child:
In the unfortunate event of the girl child's death, you can close the account prematurely. A death certificate must be provided, and the entire corpus of the Sukanya Samriddhi Account, along with accrued interest up to the month before closure, will be paid to the guardian. No taxes will be imposed on premature closure.
3. Change in residency or citizenship:
If the girl child's status changes, such as becoming a non-resident or acquiring citizenship in another country, you can opt for premature closure. As the guardian, you should submit documents reflecting the alteration in her residency or citizenship status within one month.
4. Special circumstances:
If the account has been active for at least five years, and the bank or post office believes that continuing the account for the girl child is impractical due to reasons like the guardian's demise or the child's illness, you may request premature closure.
Sukanya Samriddhi Yojana closure rules
A. Closure on maturity:
The SSY account matures when the girl turns 21. The entire balance, including interest, will be paid out after submitting an application along with proof of identity, residence, and citizenship.
B. Premature closure:
Premature closure is permitted under the following conditions:
1. Marriage: If the girl is 18 or older, an application (Form-4) can be submitted for closure between one month before and three months after the marriage, with age proof documents.
2. Death: In case of the girl's death, the balance, along with interest, will be paid to the guardian upon submission of the death certificate.
3. Medical reasons: If the girl has a life-threatening illness or the guardian passes away, premature closure may be allowed.
4. Status change: If the girl becomes a non-resident or non-citizen of India, the status change must be reported within one month for account closure.
5. Undue hardship: After 5 years from opening the account, if continued operation causes undue hardship (e.g., guardian’s death, medical issues), the account may be closed early.
6. Other reasons: For other reasons, closure is allowed, but the deposited amount will earn interest at the rate applicable to post office savings accounts.
Also Read: Beti Bachao Beti Padhao (BBBP) Scheme
Conclusion
Sukanya Samriddhi Yojana is one of the best government-backed schemes for parents who want to create a financial cushion for their daughter’s education and marriage. With high interest rates, long-term compounding, and tax benefits, it ensures security and growth.
At the same time, diversifying into Bajaj Finance FDs can provide shorter tenures, flexibility, and equally competitive returns—making it the perfect complement to SSY. Check latest rates and invest now!
