Sukanya Samriddhi (SSY)
Girl child prosperity scheme calculator.
* Sukanya Samriddhi Yojana currently offers 8.2%.
Summary
The Sukanya Samriddhi Yojana (SSY) is a flagship government initiative launched under the 'Beti Bachao, Beti Padhao' campaign. Designed specifically for the girl child, it is currently the highest-paying small savings scheme in India, offering interest rates significantly higher than PPF or FDs.
If you have a daughter below the age of 10, opening an SSY account is arguably the best financial gift you can give her. It secures her higher education and marriage expenses with sovereign-guaranteed, tax-free returns.
👧 Why SSY is Superior to Other Schemes
- Unbeatable Interest: SSY consistently offers a premium of 0.5% - 1.0% over the PPF rate. As of 2025, the rate hovers around 8.2%.
- Tax Free (EEE): Like PPF, it enjoys Exempt-Exempt-Exempt status. Investment, Interest, and Maturity are all tax-free.
- Purpose-Lock: The lock-in ensures the funds are not spent on frivolous expenses, securing them strictly for the child's future milestones.
Understanding the Timeline: 15 vs 21 Years
The tenure of SSY often confuses parents. Here is the clarification:
- Payment Tenure (15 Years): You only need to deposit money for the first 15 years from the date of account opening.
- Maturity Tenure (21 Years): The account matures 21 years after opening. For the last 6 years (Year 16 to 21), you do not deposit anything, but the account continues to earn compound interest.
Example: If you open an account when your daughter is 5 years old, you pay until she is 20. The account matures when she is 26.
Withdrawal Rules
While the scheme is long-term, it offers flexibility for major life events:
Higher Education
Once the girl turns 18 or passes Class 10, you can withdraw up to 50% of the balance to pay for college fees.
Marriage
Premature closure is allowed for the girl's marriage, provided she has turned 18. (Proof of marriage is required).
Eligibility & Limits
- Account Opening: Only for a girl child aged 0 to 10 years.
- Number of Accounts: Maximum 2 accounts per family (one per girl). Exception allowed for twins/triplets (proof required).
- Investment Limits: Minimum ₹250/year. Maximum ₹1.5 Lakh/year.
- Operator: The natural or legal guardian operates the account until the girl turns 18, after which she can take control.
Frequently Asked Questions
What happens if I miss the minimum deposit?
A penalty of ₹50 is levied for each year of default. The account becomes 'Account in Default' but can be revived by paying the penalty + minimum arrears.
Is transfer allowed?
Yes, the SSY account can be easily transferred from a Post Office to a Bank (or vice versa) anywhere in India if the family relocates.
Can both parents claim tax benefit?
No. Only the parent who actually deposits the money can claim the Section 80C deduction.
What if the girl becomes an NRI?
If the girl child becomes a Non-Resident Indian (NRI) or loses Indian citizenship, the account is deemed closed. No interest is paid from the date of status change.