Sukanya Samriddhi Yojana (SSY) - Interest Rate 2025-26, Tax Benefits, Eligibility, Bank List, Age Limit & Other Details

As a part of the campaign, Beti Bachao Beti Padhao, the Prime Minister, Narendra Modi, launched a scheme called ‘Sukanya Samridhi Yojana (SSY)’ for girl child. The objective of SSY is to meet the financial needs of girls in their higher education, marriage and other purposes. The SSY scheme offers an interest rate of 8.2% with a maturity period of 21 years. However, under certain conditions, the balance amount in the SSY can be withdrawn 5 years after the account has been opened. The account can be opened with a minimum amount of Rs. 250 until the girl child attains 10 years of age. Also, the SSY scheme belongs to the EEE tax category. The contribution to the SSY account is exempt from tax, the interest accrued on the contribution is also tax-exempt, and the withdrawal amount upon maturity is also tax-free.

In this article, we will discuss the Sukanaya Samridhi Yojana in detail.

Sukanya Samriddhi Yojana at a Glance

The Sukanya Samriddhi Yojana scheme details are as follows:

What is Sukanya Samriddhi Yojana (SSY)?

• Sukanaya Samridhi Yojana is a government-backed scheme launched to support the girl child in her higher education and marriage.
• Under this scheme, a parent or legal guardian can open an account in the name of a girl child before she reaches 10 years of age, for a period of 21 years.
• This scheme will help reduce the gender disparity by investing in girls' higher education.
• It also helps the parent/ legal guardian of a girl child to do financial planning for the higher education and marriage of the girl child. 

Features of Sukanya Samriddhi Yojana

Opening Account

• A girl child can only have one SSY account. 
• It can be opened till the girl child attains the age of 10 years.
• Only parents or legal guardians of a girl child can open an SSY account.
• SSY accounts can be opened at any post office or authorised commercial bank branch. 
• Only two SSY accounts can be opened by a family, i.e. one for each girl child.
• It can be opened for more than two girls where a family has a girl child born in twins/triplets in the first or second birth in a family. However, if the order of the first birth results in two or more girl child, then no other girls child can avail the benefit of SSY in the second birth.

Beneficiary 

• Any girl child who is a resident Indian can be a beneficiary under SSY from the time of opening the account till the time of maturity/closure.
• The SSY account should be operated by the girl child after she attains the age of 18 years. 

Minimum and Maximum Deposit

• The minimum deposit amount for an SSY account is Rs.250 and the maximum deposit is Rs.1.5 lakh in every financial year.
• Deposits should be made in multiples of Rs.50 and have to be made up to 15 years. 
• Deposits can be made through cash, cheque, demand draft or online transfer.
• The guardian can deposit the amount and operate the account till the girl child attains the age of 18. 

Interest rate

• The rate of interest for the 1st quarter of FY 2025-2026, i.e. 1 April 2025 to 30 June 2025 is 8.2% p.a. 
• The interest for the calendar month is calculated on the minimum amount  between the last day of the ending month and the close of the 5th day
• The interest earned on this account is tax-free. 

Default Rules

• If the minimum amount is not deposited for the financial year, the account will be categorised as 'Account under Default'.
• Account under default can be regularised within 15 years of account opening, by depositing the missed minimum deposits and penalty of Rs. 50 per year.
• Though the account is categorised as under default, interest amount will be earned for amount already deposited.
• No interest is payable after 
  • The completion of tenure of the SSY, i.e after 21 years from account opening. 
  • After the girl child becomes a non-citizen or a non-resident of India. 
  • Any deposit made above the maximum cap, i.e. Rs.1,50,000 per year will not earn any interest. Excess deposits can be withdrawn anytime.

Maturity Period

• The maturity period of SSY is 21 years from the account opening or upon her marriage after attaining 18 years. However, contributions have to be made for the first 15 years only. 
• Thereafter, the SSY account will continue to earn interest until maturity.
• Interest and principal deposited is paid to the child on submission of an application and proof of identity, residence, and citizenship documents.

Tax Benefits

• Investments made in the SSY scheme are eligible for deductions under Section 80C, subject to a maximum cap of Rs 1.5 lakh.
• The interest that accrues against this account which gets compounded annually is also exempt from tax under Section 10(11A) of the Income Tax Act.
• The proceeds received upon maturity/withdrawal are also exempt from income tax.

Convenient Transfer

The SSY account can be transferred from any post office to a bank or vice-versa anywhere in India.

Withdrawal Rules

• You can withdraw 50% of the account balance as of the previous financial year’s end.
• Withdrawal can be made only when the girl has attained 18 years of age or on passing 10th standard, whichever is earlier.
• The expenses should be made only for educational expenses or marriage expenses of the girl child. 
• Withdrawal can be made in lump-sum or in 5 equal instalments, not exceeding one per year for a maximum of 5 years.
• Form-3 needs to be filed on withdrawal, with proof of education or marriage expense like admission fee slip and bills, SSY account passbook. 
• The amount of withdrawal shall not exceed the fees payable for admission for higher education.

Guaranteed Returns 

Since SSY is a government-backed scheme, there is a guarantee of returns upon its maturity.

Note: SSY is ideal for those looking to save taxes while building a corpus for their daughter’s future.

Sukanya Samriddhi Yojana Interest Rate 

Interest rates for Sukanya Samriddhi Yojana is 8.2% for April to June 2025. It is determined quarterly. Below is a historical trend of interest rates(%) under Sukanya Samriddhi Yojana.

Sukanya Samriddhi Yojana Interest Calculation 

The interest for the SSY account is calculated on the lowest balance for the calendar month, i.e. between the fifth day of the month and the end of the month. The interest will be credited once, at the end of each financial year.

Generally, you can use the below formula to calculate the interest earned on an SSY account:

A = P(1+r/n)^nt

Here:

P = Initial Deposit
r = Rate of interest
n = Number of years the interest compounds
t = Number of years
A = Amount at maturity

Since the interest accrued on an SSY account is compounded on a yearly basis, it may not be a simple task to manually calculate the interest. Instead, you can use our Sukanya Samriddhi Yojana Calculator to arrive at the maturity amount upon entering the details, such as probable investment amount per year, the age of the girl child, and the account commencement year.

How to Open a Sukanya Samriddhi Yojana Account in a Post Office?

You can open a Sukanya Samriddhi Yojana (SSY) account with a participating bank or a Post Office branch. You need to follow the below procedure to open the account:

• Visit the bank or post office branch where you would like to open the account.
• Fill up the application form (Form-1) with relevant details and provide supporting documents.
• Pay the first deposit in the form of cash, cheque, or demand draft. The amount can be anything from Rs. 250 up to Rs.1.5 lakh.
• The bank or post office will process your application and payment.
• Upon processing, your SSY account will be opened. A passbook will be issued for this account marking the initiation of the account.

Sukanya Samriddhi Yojana Application Form

Here is how the SSY account opening form looks like: 

How to Open a Sukanya Samriddhi Yojana Account through Banks?

You can open a Sukanya Samriddhi Yojana account either with a participating bank or a post office branch. It is more convenient for you to open an SSY account with the bank where you already hold a savings account if it is one of the participating banks. You can visit the respective banks’ websites to download the SSY Account Opening Application Form. You need to fill the form and submit it to the participating bank to open the SSY account. The participating banks are:

• State Bank of India
• Allahabad Bank
• Andhra Bank
• Punjab and Sind Bank
• Bank of Baroda
• Canara Bank
• Bank of India
• Bank of Maharashtra
• Corporation Bank
• Central Bank of India
• Indian Overseas Bank
• Dena Bank
• Indian Bank
• UCO Bank
• Syndicate Bank
• United Bank of India
• Punjab National Bank
• Union Bank of India
• Oriental Bank of Commerce
• IDBI Bank
• Vijaya Bank
• Axis Bank
• ICICI Bank

The form and procedure will remain same as above.

Documents Required for Sukanya Samriddhi Yojana

You have to walk down to the post office or a bank branch where you have submitted the SSY application to submit the documents and proofs. You need to submit a physical copy of the following documents:

• Birth certificate of the girl child
• Identity and address proof of the guardian
• Medical certificate for proof of birth of multiple girl children on a single order of birth
• Other KYC documents, such as Aadhaar card, Voters ID, etc.
• Any other documents as required by the post office or banks

Sukanya Samriddhi Yojana Online Payment

You have to download the IPPB app on your smartphone to make online payments towards your SSY account. Through this app, you can set standing instructions so that a specified amount will be transferred online to your SSY account. Here is the step-by-step procedure:

Step 1: Transfer money from your bank account to the IPPB account.
Step 2: On the IPPB app, go to DOP Products / Services tab and choose the Sukanya Samriddhi Yojana account.
Step 3: Enter your SSY account number and the customer ID.
Step 4: Choose the amount you would like to pay and the instalment duration.
Step 5: IPPB will notify you of the success of setting up the payment routine.

Each time the app makes the money transfer, you will be notified of the same.

Premature Closure

Premature closure is allowed only in the following situations:

• Reasons for intended marriage after a girl child attains the age of 18 years, an application (Form-4) can be submitted between one month prior to marriage and 3 months after marriage along with her age proof documents.
• On the death of the girl child on the production of the death certificate the balance in the SSY along with interest will be paid to the guardian.
• Medical treatment in case of life-threatening diseases of the girl child or death of the guardian.
• Premature closure for any reason is permitted, subject to the condition that the low interest rate of a regular post office savings account will be earned.

How to Transfer a Sukanya Samriddhi Account from the Post Office to a Bank?

In order to transfer the SSY account from a post office to a bank, follow these instructions:

• Visit the PO branch where the account is held. The girl child need not visit the PO branch as the guardian can complete the process.
• Inform the PO executive about your intent to transfer the SSY account.
• Submit the duly filled account transfer form and KYC documents. The executive will verify the details and transfer the account on your request.
• Now, visit the bank branch where you would like to maintain the SSY account.
• Submit the self-attested KYC documents and any other paperwork provided to you by the PO executive while requesting to maintain the account with them.
• Once the bank executive processes your request, a new passbook will be provided.

The balance in the SSY can be transferred anywhere in India – from or to post offices, from or to banks, and between post offices and banks free of cost. This can be done upon furnishing proof of a change of residence of either the guardian or the girl child. Under any other circumstance, such a transfer can be made by paying a fee of Rs 100.

Sukanya Samriddhi Yojana Vs PPF

Public Provident Fund (PPF) is a government-backed retirement saving scheme whereas, SSY is a government-backed small savings scheme dedicated to girl child development. Both accounts provide tax benefits. While a PPF account can be opened by anybody, an SSY account can only be opened in the name of a girl child before she attains the age of 10 years. PPF balance can be liquidated to a certain extent, while the same may not be true for the SSY account.

Both schemes are designed for different purposes and therefore, picking a better option between the two schemes is tough. Here is a table that gives a comparative picture of both schemes.

Sukanya Samriddhi Yojana Vs LIC

Life Insurance Corporation (LIC) is known for providing life insurance products to its customers. One of its products, LIC Kanyadan, is comparable with the benefits offered by SSY. Both the schemes offer financial protection for girl children and look to cover education and marriage expenses for them.

One thing to note here is that an SSY account can only be accessed by the girl child once she attains 18 years of age, while LIC Kanyadan does not provide access to the girl child at all until the father’s death.

Here are a few more differences between the LIC Kanyadan scheme and SSY.

Sukanya Samriddhi Scheme (SSY) is a dedicated scheme for the empowerment and the secured future of the girl child. Every parent of a girl child must consider investing in this scheme as it also doubles as a good tax-saving instrument. Parents can open a SSY account in the name of a girl child within 10 years of her birth. The maturity proceeds from SSY will help them to cover the expenses of her college and marriage. 

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