Sukanya Samriddhi Yojana

What is Sukanya Samriddhi Yojana?

Sukanya Samriddhi Yojana (SSY) is a government scheme specifically for the girl child. A parent or guardian opens an SSY account in the name of a girl below 10 years of age. The scheme offers one of the highest interest rates among all NSS schemes and is fully EEE — exactly like PPF.

The account matures when the girl turns 21, or can be closed earlier for marriage after she turns 18. Partial withdrawal of up to 50% is allowed when she turns 18 for higher education expenses.

For parents with daughters, SSY is the single best savings instrument available — higher rate than PPF, same tax benefits, and a clear purpose.

Who Should Invest?

• Parents or guardians of girl children below 10 years of age
• Anyone who wants to build a dedicated corpus for a daughter's education or marriage

Key Features

• EEE tax status — contribution, interest, and maturity all tax-free
• Highest rate among NSS schemes (currently 8.2%)
• Section 80C deduction on contributions
• Maximum: ₹1.5 lakhs/year per girl child
• Up to 2 accounts per family (one per girl child), 3 in case of twins
• Partial withdrawal (50%) allowed after girl turns 18 for education
• Account matures when girl turns 21, or closes at marriage after 18

Eligibility — Who Can Open SSY?

• A parent or legal guardian of a girl child below 10 years of age
• A maximum of 2 SSY accounts per family, one per girl child — extended to 3 only when the second birth is twins or triplets
• The girl child must be a resident Indian citizen

How to Invest in SSY

• Visit any post office or SSY-enabled bank branch with a filled account opening form and the girl child's birth certificate
• Submit KYC documents of the parent/guardian — PAN card and address proof
• Deposit the opening amount — minimum ₹250, up to ₹1.5 lakh per year, in any number of instalments
• Collect the passbook — deposits can continue for 15 years from account opening, even though the account itself matures after 21 years
• Set a reminder to deposit at least ₹250 every year — missing this makes the account inactive until it's revived with a small penalty

Premature Withdrawal and Loan Against SSY

Once the girl turns 18 (or has passed 10th standard, whichever is earlier), you can make a partial withdrawal of up to 50% of the balance at the end of the previous financial year — meant for her higher education or marriage expenses. Full premature closure before the 21-year maturity is allowed only in specific circumstances: her marriage after she turns 18, the death of the account holder, or extreme compassionate grounds such as a life-threatening medical condition. Closing the account for any other reason means the entire balance earns only the Post Office Savings Account rate instead of the SSY rate — a significant cost, so SSY should only be funded with money you're confident you won't need before then.

There is no loan facility against an SSY account — it isn't designed to be pledged as collateral.

Taxation and ITR Reporting

Like PPF, SSY is a fully EEE instrument: contributions up to ₹1.5 lakh per year qualify for a Section 80C deduction (old regime only), the interest credited is entirely tax-free, and the maturity amount — along with the permitted partial withdrawal from age 18 — is also completely tax-free. No TDS applies, and there's nothing to declare in your ITR since the interest isn't taxable income.

Watch Out For

• Only girl children below 10 can be beneficiaries — check age eligibility
• Minimum ₹250/year must be deposited to keep account active
• Long lock-in (up to 21 years) — only money you won't need for that period

SSY Example

Investing ₹1.5 lakh every year in SSY from a daughter's birth at the current 8.2% p.a. compounds to well over ₹70 lakhs by the time the account matures when she turns 21 — entirely tax-free, and each year's contribution reduces your taxable income under Section 80C while you're investing.

How SSY Compares

A side-by-side look at SSY against PPF, NSC, and the 5-year Post Office Time Deposit — all figures are the currently published, verified rates.

Compare All NSS Schemes

See how SSY compares to all other National Savings Schemes in one table.

All NSS Schemes