Sukanya Samriddhi Yojana (SSY) is India's most rewarding government savings scheme for girl children — offering 8.2% interest per annum, complete EEE tax exemption, and the backing of the Government of India. Opened by parents or guardians for a girl child below 10 years, the account matures when she turns 21.
Mandatory deposit years15 years from account opening
Account maturesAt girl's age 21
Partial withdrawal allowedAfter age 18 (50% of balance)
80C deductionUp to ₹1.5 lakh/year
Tax on interest & maturityZero — EEE status
Where to openPost office or authorised banks
SSY vs PPF vs FD — Which is Best for a Girl Child?
SSY at 8.2% — highest rate among all EEE schemes. Specifically for girl children below 10. Cannot be withdrawn before 18.
PPF at 7.1% — lower rate, open to all. 15-year lock-in extendable. More flexible partial withdrawals after 7 years.
Tax Saver FD at 6.5–7% — interest is fully taxable. Only principal qualifies for 80C. Far inferior to SSY in the long run.
ELSS Mutual Funds — potentially higher returns (12%+) but market-linked risk. Better for longer horizons if risk is acceptable.
The Power of Starting Early
Opening SSY at birth vs age 5 makes a massive difference. At birth, the account earns interest for 21 years on 15 years of deposits. The extra years of compounding when opening at birth can add ₹10–15 lakhs to the final corpus on a ₹1 lakh annual deposit.
Partial Withdrawal Rules
After daughter turns 18, withdraw up to 50% of the previous year-end balance
Purpose: higher education fees or marriage — documents required
Remaining balance continues to earn 8.2% until maturity at 21
Premature closure: only for death, life-threatening illness, or marriage after 18
Frequently Asked Questions
What is the interest rate of SSY in 2025-26?+
The Sukanya Samriddhi Yojana interest rate for 2025-26 is 8.2% per annum, compounded annually. This is one of the highest guaranteed interest rates on any government scheme in India. The rate is reviewed quarterly and has stayed at 8.2% since Q1 2023-24.
What is the minimum and maximum deposit in SSY?+
Minimum deposit: ₹250 per year. Maximum: ₹1.5 lakh per year. You must deposit every year for 15 years. Missing a year incurs a ₹50 penalty to reactivate. Deposits qualify for Section 80C deduction up to ₹1.5 lakh per year.
When does the Sukanya Samriddhi account mature?+
The SSY account matures 21 years from the date of account opening, or upon the girl's marriage after age 18, whichever is earlier. You only deposit for the first 15 years — the account continues earning 8.2% interest for the remaining 6 years with no new deposits required.
Can I withdraw from SSY before maturity?+
Yes — partial withdrawal of up to 50% of the balance at the end of the previous financial year is allowed after the girl child turns 18, for higher education or marriage. Premature closure is allowed after 5 years only for death of account holder, life-threatening illness, or marriage after 18.
Is SSY better than PPF for a girl child?+
SSY at 8.2% vs PPF at 7.1% — SSY gives 1.1% higher returns. Both are fully tax-free (EEE). For dedicated girl child savings, SSY clearly wins on returns. PPF is more flexible (extendable lock-in, open to all). But for the sole purpose of building a corpus for your daughter, SSY is unbeatable among guaranteed schemes.
SSY offers 8.2% guaranteed — excellent for safety. Add a small SIP in equity mutual funds via Zerodha Coin to target 12–15% CAGR for your daughter's future.