What is Sukanya Samriddhi Yojana?
Sukanya Samriddhi Yojana (SSY) is a Government of India savings scheme launched under the Beti Bachao Beti Padhao campaign. It is meant for the education and marriage expenses of a girl child. The account can be opened at any post office or authorised bank.
SSY offers one of the highest interest rates among small savings schemes, currently 8.2% per year, and the interest is completely tax free. Investment up to ₹1.5 lakh per year also qualifies for deduction under Section 80C.
Key rules of the SSY account
- Account can be opened for a girl child below 10 years of age by her parent or legal guardian.
- Maximum two accounts per family (three in case of twins or triplets).
- Minimum deposit ₹250 per year, maximum ₹1,50,000 per year.
- Deposits are required for 15 years from the date of opening.
- The account matures 21 years after opening, or on the girl’s marriage after she turns 18.
- Partial withdrawal of up to 50% is allowed for higher education after the girl turns 18.
How is SSY maturity calculated?
The calculator uses the compound interest formula at the current SSY rate of 8.2%. Your yearly deposit is treated as two half-yearly deposits that compound for 15 years, and the balance then keeps growing for 6 more years until the account matures at 21 years.
A = P × (1 + r/n)^(n × t)
- A = Maturity amount
- P = Deposit amount
- r = Rate of interest (8.2%)
- n = Number of times interest compounds in a year
- t = Number of years
Example: Depositing ₹10,000 every year for 15 years at 8.2% gives a total investment of ₹1,50,000, total interest of about ₹3,11,838 and a maturity value of about ₹4,61,838 after 21 years. With the maximum ₹1,50,000 per year, the maturity value is about ₹69,27,578.
Tax benefits of SSY
This EEE (Exempt-Exempt-Exempt) status makes SSY one of the best long term schemes for a girl child.
- Deposit: deduction up to ₹1.5 lakh under Section 80C (old tax regime).
- Interest: fully tax free.
- Maturity amount: fully tax free.
Frequently asked questions
What is the current SSY interest rate?
The current Sukanya Samriddhi Yojana interest rate is 8.2% per year. The Government reviews the rate every quarter.
Can I open an SSY account online?
You need to visit a post office or an authorised bank branch with the girl’s birth certificate and your KYC documents. After opening, many banks allow online deposits.
What happens if I miss a yearly deposit?
The account becomes inactive. You can revive it by paying the minimum ₹250 for each missed year along with a penalty of ₹50 per year.
When can the money be withdrawn?
Full withdrawal is allowed at maturity (21 years from opening). Up to 50% can be withdrawn for higher education once the girl turns 18 or passes 10th standard.
Is SSY better than PPF?
SSY offers a higher interest rate than PPF and the same tax benefits, but it is only for a girl child and has a longer lock-in. PPF is open to everyone.
Related calculators
View allDisclaimer: This calculator is for information purposes only. Results are estimates based on the inputs you provide and do not guarantee any returns. Please consult a qualified financial advisor before making investment or tax decisions.