Sukanya Samriddhi Yojana (SSY) is the government’s highest-interest small savings scheme, built to fund a girl child’s education and marriage. Parents can open the account for a daughter below 10, deposit as little as ₹250 a year, and enjoy fully tax-free returns under the EEE regime. Here is the complete guide — rules, interest, maturity and how to open the account.
SSY — key facts
| Who can open | Parent/guardian of a girl child below 10 years |
| Deposit range | ₹250 minimum to ₹1.5 lakh maximum per financial year |
| Deposit period | 15 years from account opening |
| Maturity | 21 years from opening (or on marriage after 18) |
| Interest | Notified quarterly by the government — among the highest of all small savings schemes |
| Tax | EEE — deposit (80C), interest and maturity all tax-free |
| Where | Any post office or authorised bank branch |
How the account works
- You deposit for the first 15 years; the account then keeps earning interest without deposits until year 21
- Interest is compounded annually and credited to the account
- Partial withdrawal: up to 50% of the balance after the girl turns 18, for higher education
- Early closure: allowed on marriage after age 18, or in specific hardship cases
- A family can open accounts for a maximum of two daughters (exceptions for twins/triplets)
How to open an SSY account
- Visit any post office or an authorised bank (SBI, PNB, BoB and most major banks)
- Fill the SSY account opening form
- Submit the girl’s birth certificate, guardian’s Aadhaar/PAN and address proof
- Make the first deposit (₹250 minimum) — cash, cheque or transfer
- Collect the passbook; many banks then allow online deposits via net banking/standing instruction
Rates are notified quarterly — verify the current rate before planning.
What ₹1.5 lakh a year can build
At the interest rates seen in recent years (around 8%+), a parent depositing the full ₹1.5 lakh every year for 15 years accumulates roughly ₹65–70 lakh by maturity at year 21 — with zero tax on the entire amount. Even ₹2,000 a month grows to a substantial education fund. Use our SSY calculator to project your own numbers.
Frequently asked questions
What happens if I miss a year’s deposit?
The account becomes “default” but can be regularised by paying ₹250 for each missed year plus a ₹50 penalty per year.
Can NRIs open SSY accounts?
No. If the girl becomes an NRI after opening, the account must be closed or it stops earning scheme interest as per rules.
Is SSY better than PPF for a daughter?
SSY has historically offered a higher rate than PPF and the same EEE tax treatment, but locks the money to the daughter’s milestones. Many families use SSY first for a daughter and PPF for flexibility.
Related guides
Disclaimer: PMYojnaUpdates.com is an independent information portal, not affiliated with any government department. Always use the official site indiapost.gov.in for applications and status checks.