Sukanya Samriddhi Yojana pays the highest interest rate of any government-backed small savings scheme — but most guides stop at the headline rate and skip the two rules that actually matter most when your daughter is old enough to need the money: exactly when you can access it, and what happens if her plans change before 21.
[Use the Sukanya Samriddhi Yojana Calculator above ↑] — enter her current age and your planned deposit to see the real maturity value.
SSY currently pays 8.2% per annum, compounded annually — the highest rate among all small savings schemes, and higher than PPF’s 7.1%. This rate has held steady since January 2024 and is reviewed by the Finance Ministry every quarter, so unlike KVP it can change over the 21-year life of the account.
Deposits are accepted for 15 years, then the balance keeps earning until the account matures at year 21. The table assumes one deposit at the start of each financial year (before 5 April, so the full year earns interest), 8.2% compounded annually, and no change in rate. The rate is reset every quarter, so treat these as estimates, not promises.
| Yearly deposit (15 years) | Total you deposit | Value at year 21 | Interest earned |
|---|---|---|---|
| ₹12,000 | ₹1,80,000 | ₹5,74,570 | ₹3,94,570 |
| ₹50,000 | ₹7,50,000 | ₹23,94,040 | ₹16,44,040 |
| ₹1,00,000 | ₹15,00,000 | ₹47,88,079 | ₹32,88,079 |
| ₹1,50,000 (maximum) | ₹22,50,000 | ₹71,82,119 | ₹49,32,119 |
Paying monthly instead? Interest is worked out on the lowest balance between the 5th and the end of each month, so a deposit made after the 5th earns nothing for that month. Depositing ₹12,500 a month before the 5th comes to roughly ₹69 lakh at maturity on the same assumptions, a little less than the ₹71.8 lakh from one lump sum in April, because each lump sum starts earning earlier in the year. Most of the final amount is interest: in the ₹1.5 lakh case, about two-thirds.
Most content simply says “50% withdrawal after she turns 18.” The actual rule is more specific: partial withdrawal — up to 50% of the balance as of the end of the previous financial year — becomes available once the girl turns 18, or completes her 10th standard, whichever comes first. For a daughter who finishes 10th standard at 15 or 16, this can mean access to funds years earlier than the commonly-cited age-18 figure.
The account fully matures 21 years from opening. But there’s a second maturity trigger worth knowing: the account can also be closed if the girl marries, provided she is 18 or older at the time, even if the full 21 years haven’t passed. This isn’t automatic — it requires a formal closure application with proof of age and marriage, but it’s a genuine, lesser-known exit point.
If you don’t deposit at least ₹250 in a given financial year, the account is marked “irregular” — it doesn’t close, but you’ll need to pay a small penalty (₹50 per year of default) alongside the minimum deposit to revive it before the 15-year deposit window closes. Worth setting a reminder for, since this is an easy, avoidable mistake.
Outside of the marriage provision above, premature closure is permitted only in specific, serious circumstances — the death of the girl child, a life-threatening illness, or the death of the guardian — each requiring supporting documentation. In these cases, the account earns the full applicable SSY rate up to closure, not a reduced rate.
SSY is one of the few fully EEE (Exempt-Exempt-Exempt) instruments in India: your deposit qualifies for a Section 80C deduction (section 123 under the Income-tax Act, 2025, up to ₹1.5 lakh/year), the interest earned is completely tax-free, and the maturity amount is tax-free too — no exceptions, unlike PPF’s rare excess-interest taxation edge case.
| Feature | SSY | PPF |
|---|---|---|
| Current rate | 8.2% | 7.1% |
| Who can open | Only for a girl child under 10 | Anyone |
| Tenure | 21 years | 15 years (extendable) |
| Max annual deposit | ₹1.5 lakh | ₹1.5 lakh |
| Tax treatment | Fully EEE | Fully EEE |
If you have a daughter under 10, SSY’s higher rate makes it the stronger choice for this specific goal. See our PPF calculator for a comparison on your own numbers, or for building a parallel fund not tied to a girl child.
What is the current Sukanya Samriddhi Yojana interest rate?
8.2% per annum, compounded annually, for the current quarter — the highest among all government small savings schemes.
When can I withdraw money from an SSY account?
Partial withdrawal (up to 50%) is allowed once the girl turns 18 or completes her 10th standard, whichever happens first — not strictly “after 18” as often stated.
Can an SSY account close before 21 years?
Yes — if the girl marries after turning 18, with a formal application, or in specific cases like death or life-threatening illness, with supporting documents.
What happens if I miss the minimum ₹250 yearly deposit?
The account becomes “irregular.” You can revive it by paying the missed minimum deposits plus a ₹50 penalty per year of default.
How many SSY accounts can one family have?
Generally two, one per girl child — with an exception allowing a third if twins or triplets are born in the second delivery.
See also our PPF calculator and Education Loan EMI calculator for planning around the same milestones.
Sources: India Post official savings schemes page, Finance Ministry quarterly small savings notifications, Sukanya Samriddhi Account Scheme, 2019 rules. Rate confirmed for the October–December 2026 quarter by the Finance Ministry’s notification of 30 September 2026. Rates are reviewed quarterly, so confirm the latest figure before depositing. The worked examples are our own calculations, not official figures. Verified October 2026.
