Sukanya Samriddhi
The short version
Sukanya Samriddhi Yojana is a savings account opened in a daughter’s name before she turns 10. Parents deposit for 15 years, the money keeps earning for 6 more, and it is paid out tax-free when the account turns 21, or partly earlier for her education.
Interest
a year, Oct–Dec 2026
Pay in for
then it keeps growing
Matures
from opening
Per year
min to max deposit
The rate is reset every quarter by the Finance Ministry. It is among the highest of all the small savings schemes, but it is not fixed.
Step by step
How SSY works
- 01
Open before she is 10
A parent or legal guardian opens it at a post office or an authorised bank, using her birth certificate. Up to two daughters per family (three if the second birth is twins or triplets).
- 02
Deposit for 15 years
₹250 to ₹1.5 lakh in each financial year, for the first 15 years of the account. Deposits stop there.
- 03
It grows 6 more years
From year 16 to 21 there is nothing to pay, but the balance keeps earning interest. These free years do a lot of the work.
- 04
Paid out at 21
The account matures 21 years after it was opened. Up to half can be taken out earlier for her education once she turns 18 or finishes class 10.
See it
Play with the numbers
Move the sliders and tap the chips. Everything recalculates as you go, using the scheme’s own rules.
The account follows her life
- 1Opened, she is 2
- 2Up to 50% for education, from 18
- 3Last deposit at 16
- 4Paid out at 23
What it adds up to
8.2% is the rate for Oct–Dec 2026. It is reset every quarter, so treat the result as an estimate.
The orange stops growing after year 15, but the balance does not: the last 6 years add ₹27.1L with nothing more paid in.
Key rules
The rules that matter
Who it’s for
resident Indian, account in her name
How many
3 if twins or triplets in the 2nd birth
Deposits
₹250 minimum each year
Education withdrawal
after 18 or class 10
Early closure
after she turns 18
Who runs it
she takes over at 18
Tax
How it’s taxed
Like PPF, Sukanya Samriddhi is tax-free at every stage (EEE).
Put in: Up to ₹1.5 lakh a year under Section 80C, old tax regime only.
Grows: The interest is not taxed each year.
Take out: The maturity amount is tax-free.
On the new tax regime there is no 80C deduction, but the interest and the maturity amount stay tax-free.
Is it for you
Who it suits
A good fit if
- You have a daughter under 10 and want a safe fund for her education or wedding.
- You want a guaranteed rate, higher than PPF at the time of writing.
- You can commit to a small deposit every year for 15 years.
Think twice if
- !You may need the money before she is 18: it is locked until then.
- !The goal is far away and you are comfortable with market risk: equity may grow more over 21 years, with ups and downs.
- !The money is really for you: it legally belongs to her.
Avoid these
Common mistakes
Waiting too long to open
The 21 years start from opening, not from her birth. Opening at 1 instead of 9 means the money is ready when she is 22, not 30.
Depositing late in the year
Interest for a month is paid on the lowest balance after the 5th. A yearly deposit made by 5 April earns for the whole year.
Missing the ₹250
The account goes into default. You can restore it within the 15-year deposit period by paying ₹250 for each missed year plus ₹50 a year as a penalty.
Treating it as a short-term fund
Only half can come out at 18, and only for education. Plan other money for anything before that.
Compare
Sukanya next to similar options
Sukanya
Rates are as at the time of writing; both schemes are reset quarterly.
How to open
How to open SSY
- 1
Go to a post office or bank
Most post offices and large public and private banks open Sukanya accounts.
- 2
Fill the form in her name
You are the guardian. Bring her birth certificate and your own KYC.
- 3
Make the first deposit
At least ₹250, then once every financial year for 15 years.
Documents you’ll need
- Her birth certificate
- Parent or guardian’s Aadhaar and PAN
- Address proof
- Photos of parent and child
You open it at a post office or an authorised bank. Truely Money does not open accounts or take applications.
FAQ
Questions people ask
What if I can’t deposit one year?
The account goes into default. You can restore it during the 15-year deposit period by paying the minimum for each missed year plus a ₹50 penalty per year. Interest is still paid on the balance.
Can I withdraw for her wedding?
You can close the account early for her marriage once she is 18, from a month before to three months after the wedding.
Does the rate stay at 8.2%?
No. It is reset every quarter and applies to the whole balance. At the time of writing it is 8.2%.
Can grandparents open it?
Only a parent or legal guardian can open and run the account, but anyone can give money that the guardian deposits.
What happens after 21 years?
The account matures and stops earning interest, so it should be closed and paid out to her.
Can we move it if we relocate?
Yes. It can be transferred between post offices and banks anywhere in India.
Go further
Related tools and guides
Checked against official sources on 21 Oct 2026. Government rates and rules change, so confirm the latest on the official site before you act. This page explains how the scheme works and is not personal financial advice. Truely Money is independent, is not affiliated with Ministry of Finance or any government body, and does not take applications.