Sukanya Samriddhi Yojana (SSY) explained
Written and reviewed by Omm · Last reviewed · General information, not investment advice
Sukanya Samriddhi Yojana (SSY) is a government savings scheme meant for the future education and marriage expenses of a girl child. It has been among the highest-rate government savings schemes, and, like PPF, the interest and the maturity amount are tax-free.
The basic rules
- Who it is for: a girl child below 10 years of age. A parent or legal guardian opens and runs the account.
- Deposits: from ₹250 to ₹1,50,000 in a financial year, for 15 years from opening.
- Maturity: 21 years from opening. In years 16 to 21 there are no deposits, but the balance keeps earning interest.
- Interest: notified by the Ministry of Finance every quarter. Today’s rate is on the government schemes page.
How it grows
Interest is worked out every month on the lowest balance between the 5th and the end of the month, and credited once a year, the same way as in PPF. Putting the year’s money in by 5 April earns slightly more than spreading it over monthly deposits.
The extra six years with no deposits matter a great deal. Because the balance is already large when deposits stop, the interest in those years is a big part of the final amount. The SSY calculator shows each year, so you can see how much of the maturity value is your deposits and how much is interest. Enter the girl’s age to see how old she will be when the account matures.
Withdrawals
The account is built to be left alone, but the rules allow a limited withdrawal for higher education once the girl is 18, and the account can be closed for her marriage after she turns 18. The details, including how much can be withdrawn and what documents are needed, come from the scheme rules and can change, so confirm them with your bank or post office.
Tax
Deposits count towards the ₹1.5 lakh deduction under Section 123 of the Income-tax Act, 2025 (formerly Section 80C), if you choose the old tax regime. The interest and the maturity amount are not taxed.
Things to keep in mind
- The deduction limit of ₹1.5 lakh is shared with PPF, ELSS, life insurance premiums and other eligible items, so a high SSY deposit may use up a limit you meant to use elsewhere.
- You cannot easily get to the money before it is meant to be used, which is useful if you want it protected for the girl’s education.
- The rate can change every quarter, so the maturity amount is an estimate, not a promise.
To compare SSY with the other schemes, see government savings schemes compared.
Scheme rules and rates are set by the Government and can change. Check the current rules with your bank or post office before you invest.