Sukanya Samriddhi Yojana: 21 years of savings for your daughter

When a daughter is born, the first worry at home is her schooling and her future. Sukanya Samriddhi Yojana (SSY) is a central government savings account made for exactly that worry. It began in 2015 with the “Beti Bachao Beti Padhao” campaign. The account is in the girl’s name, and the money is hers.

Grandmothers once put away a little gold at a time for a granddaughter. SSY is the modern version of that habit. The difference is that here the government pays interest, keeps the records, and there is no fear of losing it.

Who can open one

• The girl must be under 10 on the day the account is opened.
• A parent or legal guardian opens it. A grandparent or uncle cannot, unless they are the legal guardian. Under rules in force since October 2024, accounts opened that way must be moved to a parent or legal guardian.
• One account per girl, and at most two girls per family. Twins or triplets can allow a third account.
• Open it at a post office or an authorised bank such as SBI.

How much, and for how long

• At least ₹250 a year, at most ₹1.5 lakh a year. Above ₹250, deposits go in multiples of ₹50.
• Pay once a year, or a little every month.
• Deposits are allowed only for the first 15 years after opening. After that you stop paying, but interest keeps coming.
• The account matures 21 years after it was opened.

For example: open it when your daughter is 2, and you pay in until she is 17. She gets the full amount at 23.

The interest, and how it is counted

For October–December 2026 the rate is 8.2% a year. It has not changed since January 2024, and it is the highest among the government’s small savings schemes.

But the government reviews this rate every three months. Unlike an FD, the rate on the day you open is not locked in — when the rate changes, the new rate applies to the whole balance. Nobody has promised 8.2% for 21 years.

One small rule is worth knowing. Each month’s interest is worked out on the lowest balance in the account between the 5th and the last day of that month, and the year’s interest is added on 31 March. So: deposit before the 5th of the month. If you pay once a year, paying before 5 April earns interest for the full year.

An example

Say you deposit ₹12,000 before 5 April every year (₹1,000 a month, in one go), and the rate stays at 8.2% for all 21 years.

• What you put in over 15 years: ₹1,80,000
• In the account after 21 years: about ₹5.75 lakh
• Of that, interest: about ₹3.95 lakh

At the ₹1.5 lakh yearly maximum, you would put in ₹22.5 lakh and have about ₹71.8 lakh after 21 years.

In the last six years you do not add a single rupee, and the money still grows. That is interest on interest — compounding. These figures are only to show how it works; if the rate changes, the final amount changes too. Paying monthly gives a little less, because the early months earn less interest.

Work it out for your own daughter’s age and amount: Sukanya Samriddhi calculator →

Tax

SSY is called “EEE” for tax — the deposit, the interest and the maturity amount are all exempt.

• The deduction on deposits, up to ₹1.5 lakh a year, is only in the old tax regime. It used to be called Section 80C; from 1 April 2026, under the Income-tax Act, 2025, it is Section 123. That ₹1.5 lakh limit is shared with PPF, ELSS, life insurance premiums and the rest — it is not separate.
• In the new tax regime there is no deduction on deposits. The interest and maturity amount are still tax-free.

When the money can come out

• For education: once she turns 18 or passes Class 10 (whichever comes first), up to 50% of the balance at the end of the previous financial year can be withdrawn. You show an admission letter or fee receipt. Take it in one go, or once a year in instalments, for up to 5 years.
• For marriage: after she turns 18, the account can be closed for her marriage. Apply from one month before the wedding to three months after it.
• At maturity: the full amount, 21 years after opening.
• If something goes wrong: if the girl dies, the account closes at once and the money goes to the guardian. For serious reasons such as treatment of a life-threatening illness or the guardian’s death, it can be closed — but only after 5 years from opening.

Once she is 18, she runs the account herself. The money is hers.

If you miss a year

If you don’t put in at least ₹250 in a year, the account goes into “default”. No need to panic. Within 15 years of opening, you can revive it by paying ₹250 for each missed year plus a ₹50 penalty per year. The easier path is to set up a monthly standing instruction with your bank.

What you need to open one

• The girl’s birth certificate
• The guardian’s Aadhaar and PAN (for KYC)
• Passport-size photos
• A first deposit of at least ₹250

The forms are available in Odia too. After opening, you can deposit from home through your bank’s app or the India Post Payments Bank (IPPB) app. The account can be moved to any post office or bank in India.

Who it suits, and what to keep in mind

SSY suits families who want to put a small, regular amount aside for a daughter and don’t want market ups and downs. With the government behind it, the money is safe.

Keep four things in mind:

1. The money is locked for a long time. It will not help with a sudden household need. Keep a separate emergency fund for that.
2. The rate can change. Don’t plan on today’s 8.2% lasting forever.
3. Prices rise over 21 years. What ₹5.75 lakh buys today, it will not buy in 21 years.
4. The money is hers. At 18 the account is in her hands. Start talking to her about money before then.

SSY is a good tool, but not the only one. Decide how much to put in by looking at your family’s income, spending and goals.

Sources: Sukanya Samriddhi Account Scheme, 2019 (Government of India Gazette notification); Ministry of Finance interest rate announcement for October–December 2026; October 2024 rules on irregular accounts. Last checked: 23 October 2026.

This letter is for education only. It is not investment advice. Markets go up and down. Decide from your own goals, time, and how much risk you can live with.