The Sukanya Samriddhi Yojana (SSY) is a small savings scheme of the Government of India, launched in 2015 as part of the Beti Bachao Beti Padhao campaign, that lets a parent or guardian build a tax-free fund for a girl child’s education and marriage. An account is opened before the girl turns ten, deposits are made for 15 years, the account matures after 21 years, and the interest — currently 8.2% a year, the highest rate among the small savings schemes — is tax-free, as are the maturity proceeds. This guide explains the scheme mechanics: eligibility, deposits, the rate and how it is set, the maturity calculation with worked figures, the withdrawal and premature-closure rules, and how SSY compares with the Public Provident Fund and other small savings options. It is a guide to the scheme’s mechanics and to using the calculator. It contains no content about child development, and it is not financial advice.

What the scheme is, and who can open an account

SSY is a deposit scheme, not an investment product: the money is held by the government through post offices and authorised banks, the rate is set by the government, and the return is the declared interest, with no market exposure and no fund management. An account may be opened by a parent or legal guardian for a girl child who has not yet completed ten years of age, with the child’s birth certificate and the guardian’s identity and address proof. Only one account per girl child is permitted, and a family may open accounts for a maximum of two girl children — three where the second delivery produces twins or triplets, on production of the relevant certificates. The guardian operates the account until the girl turns 18, after which she operates it herself.

The scheme’s purpose, stated in its founding notification, is to provide for the girl child’s education and marriage expenses — a savings purpose, not a welfare payment. The government contributes no matching amount; the benefit is the high tax-free rate, the sovereign backing, and the long, disciplined horizon that the 15-year deposit and 21-year maturity structure enforces. The account can be transferred between post offices and authorised banks anywhere in India, and it can be opened at any post office or authorised bank branch, including through the India Post Payments Bank’s digital channels where available.

Deposits, the term, and the maturity calculation

Deposits run from ₹250 to ₹1.5 lakh per financial year, in any number of instalments and of any amount within the limits, for 15 years from the date of opening. No deposits are required in years 16 to 21; the balance continues to earn interest to maturity. The account matures 21 years from opening, or on the girl’s marriage after she turns 18, whichever is earlier — the marriage provision requires an affidavit and proof of age, and it is the only early-maturity route outside the premature-closure circumstances. At maturity, the full balance — deposits plus compounded interest — is paid to the account holder, tax-free.

The maturity maths is annual compounding at the declared rate. A deposit of ₹1.5 lakh a year for 15 years at 8.2%, with interest compounding annually and no further deposits after year 15, reaches about ₹69.8 lakh at 21 years: ₹22.5 lakh contributed, about ₹47.3 lakh of interest. A deposit of ₹1 lakh a year reaches about ₹46.5 lakh; ₹50,000 a year reaches about ₹23.3 lakh; ₹25,000 a year reaches about ₹11.6 lakh. The figures scale linearly with the annual deposit, because the rate and term are the same. At a lower assumed rate of 7.5%, the ₹1.5 lakh-a-year figure falls to about ₹64.5 lakh; at 7.0%, to about ₹61 lakh — the sensitivity that the hub page’s companion section states, and the reason a projection should never be quoted at a single rate as if it were certain. The calculator computes the exact figure for the deposit pattern entered, including irregular deposits and the education withdrawal.

The rate: quarterly review, and the history

The SSY rate is notified quarterly by the Department of Economic Affairs, Ministry of Finance, along with the other small savings rates, and it applies to the balance for that quarter. The rate has been 8.2% since 1 April 2024 — raised from 8.0% — and it was left unchanged for the October to December 2026 quarter in the notification of 30 September 2026. Before that, the rate was 7.6% for a long period (April 2020 to March 2023), then 8.0% for 2023–24. The pattern is stability punctuated by occasional moves, usually in line with government bond yields, and the rate has never fallen below 7.6% in the scheme’s history — but history is not a promise, and the quarterly review means the rate for years 16 to 21 of any account is unknown at opening.

The comparison that matters is with the other small savings schemes: the Public Provident Fund pays 7.1%, the National Savings Certificate 7.7%, the post office time deposits 6.9% to 7.5% by tenure, and the Senior Citizens Savings Scheme 8.2% (for eligible depositors). SSY’s 8.2% is the highest rate available to a general depositor, and it is tax-free at all three stages — deposit (80C), interest, and maturity — where the time deposits and NSC are taxable. That exempt-exempt-exempt status, combined with the rate, is what makes the scheme the most efficient long-term savings vehicle in the small savings family for an eligible girl child, and it is why the deposit limit, rather than the rate, is usually the binding constraint.

Withdrawals, premature closure, and dormant accounts

Partial withdrawal is permitted once the girl turns 18 or passes the tenth standard, for higher education: up to 50% of the balance at the end of the preceding financial year, in one instalment per year, for up to five years. The withdrawal requires proof of admission to an educational institution or of the fee requirement, and it is paid to the account holder for the purpose stated. The withdrawal reduces the balance that compounds to maturity, and the calculator shows the effect of a withdrawal on the final figure — a 50% withdrawal at 18 typically reduces the maturity value by more than the amount withdrawn, because the withdrawn money stops compounding for the remaining years.

Premature closure before 21 years is permitted only on the death of the account holder (the balance is paid to the guardian or the nominee), or, on compassionate grounds with documentary evidence, in cases of the life-threatening illness of the account holder or the death of the guardian who opened the account. There is no general early-exit option, and no loan facility against the account — the money is locked for the term, which is the discipline the scheme is designed to impose. An account with no deposit in a financial year is treated as dormant and can be revived by paying ₹50 per default year plus the minimum deposit of ₹250 for each default year; interest continues to accrue on the balance during dormancy at the declared rate, and the maturity date is unchanged.

SSY versus PPF and the other options

The natural comparison is the Public Provident Fund: 15-year term, extendable in five-year blocks, 7.1% tax-free, ₹500 to ₹1.5 lakh a year, open to any resident individual, with partial withdrawals from the seventh year and a loan facility from the third. SSY pays 1.1 percentage points more, matures at 21 years rather than 15, and is restricted to girl children under ten. For an eligible child, SSY dominates PPF on rate and tax treatment, and the two are complements rather than substitutes: a family can hold both, using SSY for the girl child’s fund and PPF for the parents’ own retirement savings, within the separate ₹1.5 lakh annual limits that apply to each scheme.

Against bank fixed deposits, SSY’s advantages are the tax-free status and the rate: a fixed deposit at 7.5% taxable at the depositor’s slab yields about 5.2% after tax at the 30% slab, against SSY’s 8.2% tax-free. Against equity mutual funds, the comparison reverses on expected return — equities have historically returned more over 21-year horizons — but SSY carries no market risk, no volatility, and a guaranteed rate for each quarter, and the two serve different purposes: SSY is the certain, tax-free core of an education fund, and equities are the growth component that accepts volatility for a higher expected outcome. A fund that is entirely SSY is safe and certain; a fund that is entirely equity is higher-expected and uncertain; the balance between them is the family’s risk decision, and this guide does not prescribe it.

Frequently asked questions

Who can open an SSY account?

A parent or legal guardian for a girl child below 10 years of age. One account per girl, up to two accounts per family (three for twins/triplets at the second birth). The guardian operates the account until the girl turns 18.

What is the SSY interest rate?

8.2% per annum since 1 April 2024, unchanged through the October–December 2026 quarter. It is reviewed quarterly by the Government of India, compounds annually, and is tax-free, as are the maturity proceeds.

How much can I deposit in SSY each year?

₹250 minimum and ₹1.5 lakh maximum per financial year, for 15 years from opening. The account matures after 21 years. Deposits qualify for Section 80C deduction under the old tax regime.

When does SSY mature?

21 years from the date of opening, or on the girl’s marriage after she turns 18, whichever is earlier. No deposits are required in years 16–21; the balance keeps earning interest to maturity.

Can I withdraw from SSY before maturity?

Partial withdrawal up to 50% of the preceding year’s closing balance is allowed for higher education after age 18 (or passing class 10), once a year for up to five years. Premature closure is allowed only on death, or on compassionate grounds with evidence of life-threatening illness or the guardian’s death.

Is SSY better than PPF?

For an eligible girl child, SSY pays more (8.2% vs 7.1%) with the same tax-free treatment, so it is the better vehicle for the child’s fund. PPF remains the vehicle for the parents’ own savings, with a 15-year term, a loan facility, and eligibility for any resident individual. The two complement each other.