Overview
Sukanya Samriddhi Yojana (SSY) is a government-backed small savings scheme exclusively for girl child that offers an highly attractive 8.2% interest rate, tax-free returns and benefits under section 80C. Parents can deposit between ₹250 and ₹1.5 lakh annually, making it a best long-term option for securing a daughter's education and future financial needs.
Sukanya Samriddhi Yojana Interest Rate 2026
The current rate for Q2 aof FY 2026-27 is 8.2% per annum, compounded annually.
- Competitive Edge: Significantly higher than PPF (7.1%) and most bank Fixed Deposits.
- Calculation and Crediting: Rates are reviewed quarterly by the Ministry of Finance. Interest is calculated on the lowest balance between the 5th and month-end, and is credited once a year, at the close of the financial year.
Sukanya Samriddgi Yojana Scheme Details at a Glance
| Parameter | Rule / Limit |
| Eligibility | Resident Indian girl child under 10 years of age |
| Minimum Deposit | ₹250 per financial year (A ₹50 penalty applies if missed) |
| Maximum Deposit | ₹1.5 lakh per financial year (Excess deposits earn zero interest) |
| Deposit methods | Cash, cheque, DD or online transfer. |
| Account Limit | Maximum 2 accounts per family (Exception allowed for twins/triplets) |
| Deposit Period | 15 years |
Maturity and Withdrawal Rules
The scheme operates on a distinct timeline engineered for disciplined, ultra-long-term wealth creation.
- 15-Year Pay-in Window: Deposits are required only for the first 15 years from the account opening date.
- 21-Year Maturity: The account reaches full maturity exactly 21 years from its opening. No fresh deposits are made during years 16 to 21, yet the accumulated corpus continues to earn compounded interest.
- Partial Withdrawal for Higher Education: Upon the girl attaining the age of 18 or completing Class 10, up to 50% of the preceding financial year's balance may be withdrawn to cover her higher education expenses.
- Premature Closure: Early closure is permitted if the girl marries after turning 18, with applications accepted between one month before and three months after the wedding. Additionally, premature closure may be allowed after 5 years under exceptional compassionate circumstances, such as medical emergencies or the demise of the guardian.
Tax Benefits: The Coveted EEE Status
The SSY enjoys the highly favorable Exempt-Exempt-Exempt (EEE) tax status under the Indian Income Tax Act, offering triple tax benefits:
- Exempt on Contribution: Deposits qualify for deduction under Section 80C, subject to the annual cap of ₹1.5 lakh. (Note: This benefit is available only under the Old Tax Regime; the New Tax Regime does not permit Section 80C deductions.)
- Exempt on Accumulation: The interest earned each year is entirely free from tax.
- Exempt on Withdrawal: The maturity proceeds, as well as any partial withdrawals made during the tenure, are fully exempt from income tax.
In Short
| Component Tax | Treatment |
| Deposits | Eligible for deduction under Section 80C up to ₹1.5 lakh/year |
| Interest Earned | Completely tax-free (exempt from income tax) |
| Maturity Amount | Fully tax-free |
Related Update
FAQs
What is Sukanya Samriddhi Yojana?
Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme launched under the Beti Bachao Beti Padhao initiative to help parents build a financial corpus for girl child's future higher education and marriage expenses.
Who Can Open a Sukanya Samriddhi Account?
Sukanya Samriddhi Yojana account can be opened by a parent of a girl child whose aged is below 10 years of age at the time of opening the account.
What is the maximum investment allowed?
The maximum annual contribution is ₹1.5 lakh.
Is the maturity amount taxable?
No. Sukanya Samriddhi Yojana offers complete tax exemption on maturity proceed.
Can NRIs open a Sukanya Samriddhi account?
The scheme is applicable only for resident girl child.
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