Sukanya Samriddhi Yojana 2026: Rules, Interest Rate, and How to Open an Account for Your Daughter
TL;DR
- Sukanya Samriddhi Yojana (SSY) is a government-backed small savings scheme for a girl child below 10 years, offering one of the highest interest rates among sovereign-guaranteed instruments.
- Minimum deposit is Rs. 250 per year, maximum Rs. 1,50,000 per financial year, payable for 15 years from the date of opening.
- Account matures 21 years from opening, with partial withdrawal of 50 per cent allowed after the girl turns 18 for higher education or marriage.
- Interest is compounded annually and is fully tax-free; contributions qualify for deduction under Section 80C (old regime only).
- The scheme is governed by the Sukanya Samriddhi Account Rules, 2019, notified by the Ministry of Finance and operated through India Post and authorised banks.
What this means in plain terms
If you have a daughter under the age of 10, the government has set up a special savings account that pays a higher interest rate than a regular fixed deposit and is exempt-exempt-exempt for tax purposes. The idea is to help parents build a corpus for her higher education or marriage without having to depend on market-linked products.
You deposit at your own pace for the first 15 years, then let the corpus compound for another 6 years until maturity. The Department of Posts and most public sector banks accept SSY accounts, and a single parent or guardian can open one account per girl child, up to a maximum of two daughters per family (with twins or triplets as an exception).
Eligibility and account opening
Who can open the account
The account must be opened by the natural or legal guardian of a girl child below the age of 10. Only one account per girl is allowed across the entire country, and a family is limited to two SSY accounts, except where twins or triplets are born in the second pregnancy.
Documents required
The account-opening form, the girl's birth certificate, the guardian's PAN and Aadhaar, and address proof are mandatory. Most post offices and banks now offer a guided in-branch process where staff verify the birth certificate before opening.
Where to open
You can open an SSY account at any post office or with authorised banks such as SBI, PNB, Bank of Baroda, Canara Bank, ICICI Bank, HDFC Bank, and Axis Bank. India Post lists the full set of participating institutions on indiapost.gov.in.
Deposit rules and interest
Minimum and maximum contribution
You must deposit at least Rs. 250 in a financial year to keep the account active. The maximum permitted is Rs. 1,50,000 per financial year across all SSY accounts held in the name of a single girl, aligned with the Section 80C ceiling.
Interest rate and compounding
The interest rate is notified by the Ministry of Finance every quarter and is among the highest in the small savings basket. Interest is calculated on the lowest balance between the close of the 5th day and the end of the month, and is credited at the end of each financial year.
Penalty for default
If the minimum Rs. 250 is not deposited in any financial year, the account becomes a default account and a penalty of Rs. 50 per year of default is levied. The account can be regularised by paying arrears plus penalty before the 15-year deposit period ends.
Withdrawal and maturity
Partial withdrawal at age 18
Once the girl turns 18 or passes class 10, up to 50 per cent of the balance at the end of the previous financial year can be withdrawn for higher education expenses, supported by admission proof. This can be taken as a lump sum or in instalments over five years.
Maturity at 21 years
The account matures 21 years from the date of opening, regardless of whether deposits continued for the full 15 years. The entire maturity amount, including accrued interest, is paid to the account holder once she submits a withdrawal application along with KYC documents.
Premature closure
Premature closure before maturity is permitted only in specific cases: death of the account holder, life-threatening illness, death of the guardian, or marriage of the girl after she turns 18. Each case requires documentary proof and approval from the postmaster or bank manager.
Tax treatment
Section 80C deduction
Contributions up to Rs. 1,50,000 per financial year qualify for deduction under Section 80C of the Income Tax Act, 1961, but only if the taxpayer chooses the old regime. The new regime under Section 115BAC does not allow Section 80C.
Tax-free interest and maturity
The interest credited each year and the entire maturity proceeds are fully exempt from tax under Section 10(11A). This EEE status is one of the strongest reasons families with daughters prefer SSY over taxable instruments like bank FDs.
A real example
Meera, 32, Rs. 18L CTC, Pune, opens an SSY account for her daughter Aanya (age 4) at the local post office in April 2026. She plans to contribute Rs. 1,50,000 every year for 15 years.
- Year 1 contribution: Rs. 1,50,000.
- Total contributions over 15 years: Rs. 22,50,000.
- Assuming an indicative interest rate of around 8.2 per cent (FY 2025-26 rate, subject to quarterly revision), the maturity corpus at the end of 21 years works out to roughly Rs. 69-70 lakh.
- Meera also saves Rs. 46,800 in tax each year (assuming she is in the 30 per cent slab plus cess, old regime), totalling roughly Rs. 7,02,000 in tax saved over 15 years.
- When Aanya turns 18, Meera can withdraw 50 per cent of the then balance to fund her engineering admission, and the remainder continues to compound till age 25.
What to do this week
- Visit your nearest post office or authorised bank with your daughter's birth certificate, your PAN, Aadhaar, and a passport-size photo to open the account.
- Set a standing instruction or monthly auto-debit for at least Rs. 1,000 to ensure you never default on the Rs. 250 minimum.
- Calculate your annual contribution within the Rs. 1,50,000 ceiling, factoring in PPF and ELSS if you also use those for Section 80C.
- Run the 6-step assessment at https://myfinancial.in to see your old-vs-new regime delta, unused deductions, and insurance gap in under 10 minutes.
- Update your nominee details and store the passbook safely; request a duplicate immediately if lost.
FAQ
Can NRIs open an SSY account for a daughter?
No. The girl child must be a resident Indian at the time of account opening, and if she becomes an NRI later, the account must be closed within one month of change in status. This rule is under the Sukanya Samriddhi Account Rules, 2019.
Can I open SSY accounts for three daughters?
Generally only two accounts are allowed per family. A third account is permitted only when twins or triplets are born after the first child, or when triplets are born in the first pregnancy itself, supported by a medical certificate.
Is partial withdrawal allowed before age 18?
No. The first partial withdrawal is permitted only after the girl turns 18 or passes class 10, whichever is earlier, and is capped at 50 per cent of the prior year's closing balance.
What happens if I miss a year's deposit?
The account becomes a default account but can be revived by paying Rs. 250 minimum plus Rs. 50 penalty per defaulting year, anytime within the 15-year deposit window.
Can the account be transferred to another city?
Yes. SSY accounts can be transferred between post offices and banks free of cost on submission of a transfer application along with the guardian's KYC. The original passbook is endorsed with the new branch details.
Is the interest rate fixed for the full 21 years?
No. The interest rate is reviewed and notified every quarter by the Ministry of Finance and applies to balances during that quarter. Historical rates have stayed in the 7.6 to 8.5 per cent range.
Does SSY count for tax benefit under the new regime?
No. Section 80C is not available under the new regime introduced by Section 115BAC. If you opt for the new regime, you still get the tax-free interest and maturity, but you cannot claim the Rs. 1,50,000 contribution deduction.
Sources
- India Post, Sukanya Samriddhi Account, https://www.indiapost.gov.in
- Ministry of Finance, Sukanya Samriddhi Account Rules 2019, https://finmin.nic.in
- Income Tax Department, Section 80C and Section 10(11A), https://incometax.gov.in
- Reserve Bank of India, Small Savings Schemes, https://rbi.org.in
This is general information, not personalised advice. For your situation, consult a Certified Financial Planner.
