Sukanya Samriddhi Yojana (SSY): Interest Rate, Tax Benefits, and How to Open an Account

Sukanya Samriddhi Yojana (SSY) is a government savings scheme built for one purpose: helping parents build a secure fund for a girl child's education and future. It offers one of the highest interest rates among small-savings schemes, and — unusually — both the interest earned and the maturity amount are completely tax-free.

If you have a daughter under 10, this is one of the most powerful long-term savings tools available.

The interest rate (2026)

For the April–June quarter of FY 2026–27, the SSY interest rate is 8.2% per annum, compounded annually. The rate is reviewed every quarter by the Ministry of Finance, but SSY has consistently been among the top-paying government schemes — which is what makes it so effective over a long horizon.

Why SSY is so attractive

• High, tax-free returns — 8.2% compounded annually, with no tax on the interest
• Triple tax benefit (EEE) — deposits qualify for a Section 80C deduction, and both the interest and the final maturity amount are tax-free
• Government-backed — your money is as safe as a sovereign guarantee
• Disciplined, goal-based saving for a daughter's education and marriage

Who can open an SSY account

• A parent or legal guardian can open the account in the name of a girl child below 10 years of age
• Each girl can have only one account
• A family can open accounts for at most two daughters — the exception being twins or triplets, where a third account is allowed

Deposit and maturity rules

• Minimum deposit: ₹250 per year
• Maximum deposit: ₹1.5 lakh per year
• Deposit period: you contribute for 15 years from opening
• Maturity: the account matures 21 years after opening
• Partial withdrawal: up to 50% of the balance is allowed for higher education once the girl turns 18

So the account keeps earning interest even in the years after you stop depositing, up to maturity — which is a big part of why the final corpus grows so much.

Documents you need

1. The girl child's birth certificate
2. The guardian's ID and address proof (Aadhaar, PAN, etc.)
3. A passport-size photograph

How to open an account, step by step

Step 1: Choose a post office or authorised bank

SSY accounts can be opened at any post office or authorised bank branch. Most major banks and India Post offer it.

Step 2: Fill the SSY form and submit documents

Complete the account-opening form and submit the birth certificate, guardian ID/address proof, and photograph.

Step 3: Make the opening deposit

Deposit a minimum of ₹250 to activate the account. You can then add up to ₹1.5 lakh per financial year.

Step 4: Keep depositing (online too)

Many banks let you deposit and top up the account through net banking or their app, so you can automate annual contributions.

Frequently asked questions

Can I open SSY for a girl older than 10? No. The account must be opened before the girl turns 10.

What happens if I miss the minimum deposit in a year? The account is treated as in default but can be revived by paying a small penalty (₹50) plus the minimum ₹250 for each missed year.

Is the maturity amount really tax-free? Yes. SSY enjoys EEE status — deposit (80C), interest, and maturity are all tax-exempt under current rules.

Can the girl operate the account herself? The account can be operated by the girl once she turns 18, after which she can manage withdrawals for her education or other needs.

Check what else fits your family

Saving for a daughter is one piece — there may be other schemes you qualify for. Try our eligibility checker, and see the full Sukanya Samriddhi Yojana scheme page for official source links.

Interest rates are revised quarterly and rules can change. Verify the current rate and terms at your post office, bank, or on the official India Post website before investing.