1. Account Eligibility & Opening
A Sukanya Samriddhi Yojana account can be opened for a girl child at any time before she turns 10 years old. Only the parents or legal guardians are allowed to open the account. Each girl child is eligible for only one SSY account. A family can open up to two accounts, one for each girl child. In the case of twins or triplets, exceptions are made, allowing more than two accounts under specific circumstances. Accounts can be opened at any authorised bank branch or post office across India.
2. Who Can Be a Beneficiary?
Any Indian girl child is eligible to be a beneficiary. The account remains active until maturity, or until early closure under specific conditions. After turning 18, the girl must take over the operation of the account.
3. Deposits: Limits & Mode
- Minimum Deposit: ₹250 per year
- Maximum Deposit: ₹1.5 lakh annually
Contributions must be made for a total period of 15 years from the account opening. Funds can be deposited through cash, cheque, demand draft, or online methods. Until the girl turns 18, the guardian will manage the account and make deposits on her behalf.
4. Interest Earnings
For the April–June quarter of FY 2025–26, the SSY scheme offers an interest rate of 8.2% per annum. Interest is calculated monthly, based on the lowest account balance between the fifth and last day of the month. Interest earned is fully exempt from tax.
5. Account Defaults
Failure to make the minimum deposit for any financial year will result in the account being labeled as "in default". A defaulted account can still be revived within 15 years by paying the missed amount along with a penalty of ₹50 for each defaulted year. Even if defaulted, interest continues to accumulate on existing deposits.
No interest is payable:
- After 21 years from account opening
- If the beneficiary becomes a non-resident or loses Indian citizenship
Deposits exceeding ₹1.5 lakh in a year won't earn interest and can be withdrawn at any time.
6. Account Maturity Period
The SSY account matures 21 years from the date of opening, or at the time of the girl's marriage after she turns 18, whichever is earlier. Deposits are required only for the initial 15 years; the balance continues to earn interest until maturity. Upon maturity, the total amount (principal + interest) is paid to the account holder, subject to identity and citizenship verification.
7. Tax Exemptions
Contributions made to SSY qualify for tax deduction under Section 80C of the Income Tax Act, capped at ₹1.5 lakh per annum. Both interest earned and maturity proceeds are completely tax-free under Section 10(11A).
8. Portability
SSY accounts are portable and can be transferred between banks and the nearest post offices anywhere in India without any hassle.
9. Withdrawal Provisions
A partial withdrawal of up to 50% of the previous financial year's balance is allowed. Withdrawals are permitted when the girl turns 18 or after she has passed Class 10, whichever comes first. Funds can be withdrawn for education or marriage expenses only, either as a lump sum or in up to five annual instalments.
Guardians or beneficiaries must complete Form-3 and submit it along with the passbook and any other necessary documents, such as admission receipts or wedding bills. The withdrawal amount cannot exceed actual education expenses.
10. Safe and Assured Returns
The SSY is a secure investment strategy for your daughter's future because it is a government-supported savings program that guarantees safe and steady returns.
The Sukanya Samriddhi Yojana
is a beneficial option for parents seeking a reliable and tax-efficient way to save for their daughter's higher education and future marriage expenses. It offers long-term security, attractive interest rates, and full tax exemption—ideal for building a stable financial future for the girl child.
