Sukanya Samriddhi Yojana (SSY): A Smart Investment for Your Daughter’s Future
Introduction
Planning your daughter’s future just got smarter! Launched under the Beti Bachao, Beti Padhao campaign, the Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme designed to secure the financial future of girl children in India.
Let’s break down everything you need to know—eligibility, benefits, interest rates, tax advantages, and how to invest.
What is Sukanya Samriddhi Yojana?
The Government of India launched a social campaign on 22 January 2015 to address the issue of the declining child sex ratio in our country. The Beti Bachao Beti Padhao (BBBP) campaign sends the message ‘Save girls, educate the girl child’. This is a national initiative jointly run by the Ministry of Women and Child Development, the Ministry of Health and Family Welfare, and the Ministry of Human Resource Development.
BBBP aims to achieve the following:
- To stop gender discrimination against children and abolish the practice of sex determination.
- To ensure the survival and protection of girls.
- To ensure higher participation of girls in education and other areas.
SSY aims at tackling a major problem associated with the girl child i.e., the financial burden related to education and marriage. It is focused on securing a bright future for the girl child in India by facilitating the parents of a girl child in building a fund for the proper education and carefree marriage expenses of their child. SSY has introduced the Sukanya Samriddhi Account for this very purpose.
Sukanya Samriddhi Yojana Details
| Feature | Details |
|---|---|
| Launch Year | 2015 |
| Eligibility | Girl child below 10 years of age |
| Minimum Deposit | ₹250/year |
| Maximum Deposit | ₹1.5 lakh/year |
| Interest Rate (2025) | 8.2% (subject to quarterly revision) |
| Maturity Period | 21 years from account opening |
| Tax Benefit | Under Section 80C (EEE – exempt-exempt-exempt) |
Eligibility Criteria
To open an SSY account:
- The girl child must be an Indian resident.
- She must be below 10 years at the time of account opening.
- Only one account per girl child is allowed.
- A maximum of two accounts per family is permitted.
How to Open a Sukanya Samriddhi Yojana Account in a Post Office?
You can open a Sukanya Samriddhi Yojana (SSY) account with a participating bank or a Post Office branch. You need to follow the below procedure to open the account:
Upon processing, your SSY account will be opened. A passbook will be issued for this account marking the initiation of the account.
Visit the bank or post office branch where you would like to open the account.
Fill up the application form (Form-1) with relevant details and provide supporting documents.
Pay the first deposit in the form of cash, cheque, or demand draft. The amount can be anything from Rs.250 up to Rs.1.5 lakh.
The bank or post office will process your application and payment.
How to Open a Sukanya Samriddhi Yojana Account through Banks?
You can open a Sukanya Samriddhi Yojana account either with a participating bank or a post office branch. It is more convenient for you to open an SSY account with the bank where you already hold a savings account if it is one of the participating banks. You can visit the respective banks’ websites to download the SSY Account Opening Application Form. You need to fill the form and submit it to the participating bank to open the SSY account. The participating banks are:
- State Bank of India
- Allahabad Bank
- Andhra Bank
- Punjab and Sind Bank
- Bank of Baroda
- Canara Bank
- Bank of India
- Bank of Maharashtra
- Corporation Bank
- Central Bank of India
- Indian Overseas Bank
- Dena Bank
- Indian Bank
- UCO Bank
- Syndicate Bank
- United Bank of India
- Punjab National Bank
- Union Bank of India
- Oriental Bank of Commerce
- IDBI Bank
- Vijaya Bank
- Axis Bank
- ICICI Bank
Documents Required for Sukanya Samriddhi Yojana
You have to walk down to the post office or a bank branch where you have submitted the SSY application to submit the documents and proofs. You need to submit a physical copy of the following documents:
- Birth certificate of the girl child
- Identity and address proof of the guardian
- Medical certificate for proof of birth of multiple girl children on a single order of birth
- Other KYC documents, such as Aadhaar card, Voters ID, etc.
- Any other documents as required by the post office or banks
Tax Benefits of SSY
SSY offers triple tax exemption under the EEE status:
- Deposits qualify for deduction under Section 80C.
- Interest earned is completely tax-free.
- Maturity amount is also exempt from tax.
This makes SSY one of the most tax-efficient schemes for parents.
Withdrawal Rules
- Partial withdrawal (up to 50%) allowed after the girl turns 18 years, for education or marriage.
- Full withdrawal on completion of 21 years or upon marriage after age 18.
Why You Should Invest in SSY?
✅ Financial security for your daughter’s education & marriage
✅ High-interest rate, better than fixed deposits
✅ Safe government-backed scheme
✅ Tax savings every year
✅ Discipline in long-term investment
Interest Rate and Investment Rules
- The interest rate is revised quarterly by the government. (As of Q1 2025: 8.2%).
- Interest is compounded annually and credited to the account.
- Minimum yearly deposit: ₹250
- Maximum yearly deposit: ₹1.5 lakh
- Deposits allowed for 15 years, but account matures after 21 years.
Sukanya Samriddhi Yojana Interest Rate 2024
Interest rates for Sukanya Samriddhi Yojana is 8.2% for July to September 2024. It is determined quarterly. Below is a historical trend of interest rates(%) under Sukanya Samriddhi Yojana.
| Year | Apr-Jun | Jul-Sep | Oct-Dec | Jan-Mar |
| 2024-2025 | 8.2 | 8.2 | – | – |
| 2023-2024 | 8.0 | 8.0 | 8.0 | 8.2 |
| 2022-2023 | 7.6 | 7.6 | 7.6 | 7.6 |
| 2021-2022 | 7.6 | 7.6 | 7.6 | 7.6 |
| 2020-2021 | 7.6 | 7.6 | 7.6 | 7.6 |
| 2019-2020 | 8.5 | 8.4 | 8.4 | 8.4 |
| 2018-2019 | 8.1 | 8.1 | 8.5 | 8.5 |
| 2017-2018 | 8.4 | 8.3 | 8.3 | 8.1 |
Sukanya Samriddhi Yojana Interest Calculation
The interest for the SSY account is calculated on the lowest balance for the calendar month, i.e. between the fifth day of the month and the end of the month. The interest will be credited once, at the end of each financial year.
Generally, you can use the below formula to calculate the interest earned on an SSY account:
A = P(1+r/n)^nt
Here:
P = Initial Deposit
r = Rate of interest
n = Number of years the interest compounds
t = Number of years
A = Amount at maturity
Since the interest accrued on an SSY account is compounded on a yearly basis, it may not be a simple task to manually calculate the interest. Instead, you can use our Sukanya Samriddhi Yojana Calculator to arrive at the maturity amount upon entering the details, such as probable investment amount per year, the age of the girl child, and the account commencement year.
Example Illustration
If you invest ₹1.5 lakh per year for 15 years, you could accumulate over ₹65+ lakhs* at maturity (based on current interest rates).
*Actual amount may vary with changes in interest rates.
Sukanya Samriddhi Yojana Benefits
- Low Minimum Deposit: The minimum deposit required to be made in a SSY account is Rs.250 per financial year. You can make deposits as per your convenience up to Rs.1.5 lakh per fiscal year. The payments seem very affordable for people from all sections of society. Even if you happen to miss out on paying for a year, a penal charge of mere Rs. 50 will be levied on the missed minimum payment of Rs.250 and the account will be made normal again.
- Attractive Interest Rate: SSY accounts enjoy an 8.2% per annum compounded interest rate (for the period 1 July 2024 to 31 September 2024) – one of the highest among small savings schemes.
- Tax Benefits: You can enjoy full tax deduction on principal invested up to ₹1.5 lakh per year under Section 80C of the Income Tax Act. Both interest and maturity amounts are tax-free.
- Long Tenure: Secure your daughter’s future with a 21-year maturity period or until her marriage after 18 years (whichever is earlier).
- Educational Expenses Covered: You can withdraw 50% of the account balance as of the previous financial year’s end to meet the educational expenses of your girl child. This can be availed by submitting proof of admission only after the girl child has attained 18 years of age or has passed the tenth standard.
- Guaranteed Returns: Since SSY is a government-backed scheme, there is a guarantee of returns upon its maturity.
- Convenient Transfer: The SSY account can be transferred from any post office to a bank or vice-versa anywhere in India.
Sukanya Samriddhi Yojana Closure Rules
Closure on Maturity
Account matures after completion of 21 years of the girl child and the balance in the SSY, including interest, is paid to the child on submitting an application and proof of identity, residence, and citizenship documents.
Premature Closure
Premature closure is allowed only in the following situations:
- Reasons for intended marriage after a girl child attains the age of 18 years, an application (Form-4) can be submitted between one month prior to marriage and 3 months after marriage along with her age proof documents.
- Death of the girl child on the production of the death certificate the balance in the SSY along with interest will be paid to the guardian.
- Medical treatment in case of life-threatening diseases of the girl child or death of the guardian.
- Deemed closure in case of a change in the status of girl child i.e., girl child either becomes a non-resident or a non-citizen of India. Such a status change should be communicated by the girl child or her guardian within one month of the status change.
- After completion of 5 years from the opening of an SSY, if the post office or bank is satisfied that the operation or the continuation of the SSY is causing undue hardship to the girl child (such as the death of the guardian, medical reasons of the girl child), the girl child or guardian may order for premature closure.
- For any other reasons, if the SSY is to be closed anytime after the opening of this account, it will be permitted, but the entire deposit would only earn an interest rate applicable to the post office savings bank.
How to Transfer a Sukanya Samriddhi Account from the Post Office to a Bank?
In order to transfer the SSY account from a post office to a bank, follow these instructions:
- Visit the PO branch where the account is held. The girl child need not visit the PO branch as the guardian can complete the process.
- Inform the PO executive about your intent to transfer the SSY account.
- Submit the duly filled account transfer form and KYC documents. The executive will verify the details and transfer the account on your request.
- Now, visit the bank branch where you would like to maintain the SSY account.
- Submit the self-attested KYC documents and any other paperwork provided to you by the PO executive while requesting to maintain the account with them.
- Once the bank executive processes your request, a new passbook will be provided.
The balance in the SSY can be transferred anywhere in India – from or to post offices, from or to banks, and between post offices and banks free of cost. This can be done upon furnishing proof of a change of residence of either the guardian or the girl child. Under any other circumstance, such a transfer can be made by paying a fee of Rs 100.
Sukanya Samriddhi Yojana Vs PPF
Public Provident Fund (PPF) is a government-backed retirement saving scheme whereas, SSY is a government-backed small savings scheme dedicated to girl child development. Both accounts provide tax benefits. While a PPF account can be opened by anybody, an SSY account can only be opened in the name of a girl child before she attains the age of 10 years. PPF balance can be liquidated to a certain extent, while the same may not be true for the SSY account.
Both schemes are designed for different purposes and therefore, picking a better option between the two schemes is tough. Here is a table that gives a comparative picture of both schemes.
| Parameters | Public Provident Fund (PPF) | Sukanya Samriddhi Yojana (SSY) |
| Minimum Deposit per Financial Year | Rs.500 | Rs.250 |
| Maximum Deposit per Financial Year | Rs.1.5 lakh | Rs.1.5 lakh |
| Eligibility Criteria | Any single adult who is a resident Indian | Girl child below the age of 10 years |
| Maturity Period | 15 years | 21 years |
| Payment Period | 15 years | 15 years |
| Interest Rate | 7.1% p.a. (Q2 of FY 2024-25); Compounded yearly | 8.2% p.a. (Q2 of FY 2024-25); Compounded yearly |
| Tax Benefits | EEE benefit (i.e. Benefit on Investment, Tax-free interest and Tax-free maturity) | EEE benefit |
| Premature Withdrawal | Upon completing five financial years | Upon the girl child attaining 18 years for marriage or higher education |
Sukanya Samriddhi Yojana Vs LIC
Life Insurance Corporation (LIC) is known for providing life insurance products to its customers. One of its products, LIC Kanyadan, is comparable with the benefits offered by SSY. Both the schemes offer financial protection for girl children and look to cover education and marriage expenses for them.
One thing to note here is that an SSY account can only be accessed by the girl child once she attains 18 years of age, while LIC Kanyadan does not provide access to the girl child at all until the father’s death.
Here are a few more differences between the LIC Kanyadan scheme and SSY.
| Parameters | LIC Kanyadan Scheme | SSY |
| Account/Policy Ownership | Policy is to be purchased in the name of the father of the girl child | Account is to be opened in the name of the girl child, maintained by the guardian until she reaches 18 years of age |
| Eligible Nationality | Any father of a girl child | Resident Indians only |
| Age Eligibility | Father: 18 years to 50 years Daughter: minimum of 1 year | Before the girl child attains 10 years of age |
| Loan Facility | Can be availed after making premium payments for three consecutive years | Not available |
| Premium/Deposit Limit | No maximum limit | Minimum Rs.250 up to Rs.1.5 lakh per fiscal year |
| Maturity Amount | Minimum Rs.1 lakh with no maximum limit | Based on the deposits made |
Sukanya Samriddhi Scheme (SSY) is a dedicated scheme for the empowerment and the secured future of the girl child. Every parent of a girl child must consider investing in this scheme as it also doubles as a good tax-saving instrument. Parents can open a SSY account in the name of a girl child within 10 years of her birth. The maturity proceeds from SSY will help them to cover the expenses of her college and marriage.
Latest Updates (2025)
- Interest Rate: 8.2% for Q1 FY 2025-26
- More banks have integrated online SSY services for ease of access
- Increasing popularity as a goal-based planning tool among parents
Click here to learn more about government schemes
Conclusion
Sukanya Samriddhi Yojana is more than just a savings scheme—it’s a powerful step toward women empowerment and securing your daughter’s dreams. With guaranteed returns, tax exemptions, and low risk, SSY stands as one of the best investments for parents in India.
