Sukanya Samriddhi Yojana 2026: Rate, Rules, Maturity and Withdrawals
Last updated: 13 October 2026
Quick answer: Sukanya Samriddhi Yojana (SSY) is a government savings scheme for a girl child under 10, paying 8.2% tax-free for October–December 2026. You deposit ₹250 to ₹1.5 lakh a year for 15 years; the account matures 21 years after opening. Up to 50% can be withdrawn for education once she turns 18. ₹1.5 lakh a year could reach about ₹71.8 lakh.
Last updated: 13 October 2026 Quick answer: Sukanya Samriddhi Yojana (SSY) is a government savings scheme for a girl child under 10, paying 8.2% tax-free for October–December 2026. You deposit ₹250 to ₹1.5 lakh a year for 15 years; the account matures 21 years after opening. Up to 50% can be withdrawn for education once she turns 18. ₹1.5 lakh a year could reach about ₹71.8 lakh. Key takeaways Rate: 8.2% for Oct–Dec 2026; unlike SCSS, it is reset quarterly and applies to your whole balance. Deposits: ₹250 minimum and ₹1.5 lakh maximum per financial year, for 15 years. Maturity: 21 years from opening; ₹1.5 lakh a year grows to about ₹71.8 lakh at 8.2%. Withdrawal: up to 50% of the balance for higher education after age 18 or Class 10. Tax: interest and maturity are tax-free; deposits qualify for section 123 in the old regime only. Parents of a newborn daughter in India hear about Sukanya Samriddhi Yojana within weeks, often from a relative at the naming ceremony. It deserves the attention: it pays the joint-highest rate among small savings schemes, and every rupee of interest is tax-free. But it also locks money away for up to 21 years, and the rules on deposits and withdrawals catch many families out. This guide covers the current interest rate, eligibility, deposit rules, a year-by-year maturity calculation, education withdrawals, premature closure, tax under the Income-tax Act, 2025, and how SSY fits alongside mutual funds in a daughter's education plan. What is Sukanya Samriddhi Yojana? Sukanya Samriddhi Yojana (SSY) is a small savings scheme of the Government of India, launched in January 2015 under the Beti Bachao Beti Padhao campaign, that lets parents save for a daughter's education and marriage. It now runs under the Sukanya Samriddhi Account Scheme, 2019, and is available at post offices and authorised banks. The Ministry of Finance office memorandum of 30 September 2026 kept small savings rates unchanged for 1 October to 31 December 2026, so SSY pays 8.2% a year . It was raised to that level from 8% on 1 January 2024. Feature Sukanya Samriddhi rule (as of October 2026) Interest rate 8.2% a year, compounded and credited annually; reset every quarter Who can open Parent or legal guardian of a resident girl child below 10 years Accounts allowed One per girl; two girls per family (more for twins or triplets) Yearly deposit Minimum ₹250, maximum ₹1.5 lakh per financial year, in multiples of ₹50 Deposit period 15 years from opening Maturity 21 years from opening Partial withdrawal Up to 50% of the previous year-end balance, for education, after 18 or Class 10 Tax EEE: section 123 deduction (old regime) and tax-free interest and maturity Timeline of a Sukanya Samriddhi Yojana account from opening to deposits, education withdrawal and maturity Who can open a Sukanya Samriddhi account? The girl: must be a resident Indian and below 10 years old on the date of opening. Once she turns 10, the window closes. The depositor: a natural parent or legal guardian opens and operates the account until she is 18. How many: one account per girl, and a family can open accounts for up to two daughters. A third is allowed if the second birth produces twins, or if the first birth produces triplets, with a medical certificate. Guidelines issued by the Ministry of Finance in August 2024, effective 1 October 2024, required accounts opened by grandparents or others who are not legal guardians to be transferred to a natural parent or legal guardian, and directed post offices to close irregular extra accounts. If a grandparent opened your daughter's account, check that it has been regularised. Documents needed are the girl's birth certificate, the guardian's PAN and Aadhaar, photographs and address proof. How much can you deposit in SSY, and for how long? You must deposit at least ₹250 and at most ₹1.5 lakh in each financial year, for 15 years from the date of opening. You can deposit in a lump sum or in instalments, in multiples of ₹50. From year 16 to year 21, no deposits are allowed, but interest keeps compounding. What if you miss a year? If you fail to deposit the ₹250 minimum, the account becomes a "defaulted" account. You can revive it at any time within the 15-year deposit period by paying ₹250 for each missed year plus a penalty of ₹50 per year of default. Under the 2019 rules, a defaulted account that is not revived still earns the scheme rate until maturity, on the balance already in it. The 5th-of-the-month rule Interest is calculated each month on the lowest balance between the close of the 5th day and the end of the month, then credited at the end of the financial year. So money deposited on 6 April earns nothing for April. Depositing the full ₹1.5 lakh between 1 and 5 April each year earns the most. Depositing it every March instead would cost about ₹5 lakh off the maturity value over 21 years, at 8.2%. How much will Sukanya Samriddhi give at maturity? Assuming the rate stays at 8.2% for all 21 years and deposits are made by 5 April each year, here is what different yearly amounts become. Yearly deposit Total deposited (15 years) Balance after 15 years Maturity value (21 years) Tax-free interest earned ₹12,000 (₹1,000/month) ₹1,80,000 ₹3,58,079 ₹5,74,570 ₹3,94,570 ₹50,000 ₹7,50,000 ₹14,91,996 ₹23,94,040 ₹16,44,040 ₹1,00,000 ₹15,00,000 ₹29,83,993 ₹47,88,079 ₹32,88,079 ₹1,50,000 (maximum) ₹22,50,000 ₹44,75,989 ₹71,82,119 ₹49,32,119 Notice the last six years. With no fresh money going in, the ₹1.5 lakh-a-year account still grows from about ₹44.8 lakh to ₹71.8 lakh, purely through compounding. Sukanya Samriddhi Yojana maturity growth chart for ₹1.5 lakh yearly deposits over 21 years at 8.2% The rate will not stay at 8.2% for 21 years SSY's rate is reset every quarter and applies to the whole balance, not just new deposits. It was as low as 7.6% between 2020 and 2022. The maturity value for ₹1.5 lakh a year changes meaningfully with the average rate: Average rate over 21 years Maturity value (₹1.5 lakh a year) 7.5% ₹64,99,748 8.0% ₹69,80,093 8.2% ₹71,82,119 8.5% ₹74,96,270 Also think in today's money. At 6% inflation, ₹71.8 lakh in 21 years buys roughly what ₹21 lakh buys today. That is a solid sum, but a professional degree in 2047 may cost much more. Our guide to what money will be worth in 20 years (/insights/inflation-value-of-1-crore-future) explains the arithmetic. Bar chart of Sukanya Samriddhi Yojana maturity amounts for yearly deposits of ₹12,000 to ₹1.5 lakh When can you withdraw money from Sukanya Samriddhi? Partial withdrawal for education Once the girl turns 18, or passes Class 10, whichever is earlier, you can withdraw up to 50% of the balance at the end of the preceding financial year for her higher education. The withdrawal must be backed by an admission letter or fee demand, and is limited to the actual requirement. You can take it as a lump sum or in instalments, no more than once a year, for up to five years. Example: an account opened at birth with ₹1.5 lakh a year would hold about ₹52.4 lakh at the end of year 17. When she starts college at 18, up to about ₹26.2 lakh could be withdrawn, though every rupee taken out early reduces the final maturity amount. Closure on marriage The account can be closed early for the girl's marriage, once she is 18. The application must be made no earlier than one month before and no later than three months after the wedding, with proof of age. Other premature closure Death of the account holder: the account is closed and the balance, with interest, paid to the guardian. Compassionate grounds: after five years, the post office can allow closure for a life-threatening illness of the girl or the death of the guardian, on documentary evidence. Outside these cases, SSY money is not accessible before she turns 18. There is no loan facility either, unlike PPF. That is why SSY should never hold money the family may need for emergencies. Is Sukanya Samriddhi tax-free? Yes. SSY is one of the few "exempt-exempt-exempt" (EEE) investments in India: Deposits: deductible up to ₹1.5 lakh a year under section 123 of the Income-tax Act, 2025 (the old section 80C), within the same overall limit as PPF, ELSS, EPF and life insurance premiums. This deduction is available only in the old regime . Interest: tax-free every year, in both regimes, as it was under section 10(11A) of the old Act. Maturity and withdrawals: tax-free. Most salaried taxpayers now use the default new regime under section 202, so for them the deposit gives no tax deduction. The tax-free interest still makes 8.2% equivalent to roughly 11.9% from a taxable FD for someone in the 30% slab. Our tax planning guide for FY 2026-27 (/insights/tax-planning-guide-india) helps you choose a regime. Sukanya Samriddhi vs PPF vs mutual funds: which is better for a daughter? SSY is strong for the guaranteed, tax-free part of a daughter's education fund. It is not designed to be the whole plan. Factor Sukanya Samriddhi PPF Equity mutual funds (SIP) Return (Oct 2026) 8.2%, government-set 7.1%, government-set Market-linked; can be negative over short periods Lock-in Till 18 (50%) and 21 years (full) 15 years; partial withdrawal from year 7 None, except ELSS (3 years) Yearly limit ₹1.5 lakh per account ₹1.5 lakh per individual No limit Tax on returns Tax-free Tax-free 12.5% LTCG above ₹1.25 lakh a year Flexibility of goal Education and marriage only Any purpose after lock-in Any purpose Comparison of Sukanya Samriddhi Yojana, PPF and equity mutual funds for a daughter Our existing analysis of Sukanya Samriddhi vs mutual funds for a daughter's education (/insights/sukanya-samriddhi-vs-mutual-funds-education) runs the numbers in detail. In short, SSY wins on certainty and tax, while equity funds have historically offered higher long-run growth with volatility and full liquidity. Many families split the goal: SSY for a guaranteed base, and an SIP that steps up each year (/insights/step-up-sip-calculator-guide) for growth, moving to safer assets in the last three to five years as described in our guide to protecting an education corpus (/insights/education-planning-3-to-5-years) . If your family has a son too, the PPF guide (/insights/ppf-complete-guide) covers the closest equivalent. How to open a Sukanya Samriddhi account Choose a post office or authorised bank. Accounts can be transferred to another post office or bank anywhere in India later. Fill the account opening form with the girl's details and the guardian as depositor. Attach documents: birth certificate, guardian's PAN, Aadhaar and photographs. Make the first deposit of at least ₹250, by cash, cheque or transfer. Set a reminder or standing instruction to deposit by 5 April each year, and add the account to your goal calculator (/tools) plan. When your daughter turns 18, she must submit her own KYC to operate the account. For a fuller plan around a new baby, see money moves for new parents (/insights/new-parents-money-moves) and our child education planning guide (/insights/child-education-planning-guide-india) . Related reading Sukanya Samriddhi vs mutual funds for a daughter's education (/insights/sukanya-samriddhi-vs-mutual-funds-education) PPF: complete guide to returns, extension and withdrawals (/insights/ppf-complete-guide) Small savings interest rates for October–December 2026 (/insights/small-savings-interest-rates-oct-dec-2026) Planning for a child to study abroad (/insights/study-abroad-education-planning-india) Child education planning in India (/insights/child-education-planning-guide-india) Frequently Asked Questions What is the Sukanya Samriddhi interest rate for October–December 2026? Sukanya Samriddhi Yojana pays 8.2% a year for 1 October to 31 December 2026, unchanged since it was raised from 8% on 1 January 2024. The rate is reviewed every quarter by the Ministry of Finance and applies to the entire balance, so the return on an existing account changes whenever the rate is revised. How much will I get if I invest ₹1.5 lakh a year in Sukanya Samriddhi? Depositing ₹1.5 lakh by 5 April every year for 15 years, at a constant 8.2%, builds about ₹71.8 lakh at the end of 21 years. You deposit ₹22.5 lakh in total and earn about ₹49.3 lakh of tax-free interest. If the average rate is 7.5%, the figure falls to about ₹65 lakh. What is the maximum age to open a Sukanya Samriddhi account? The girl must be below 10 years of age when the account is opened. A parent or legal guardian opens it, and each family can open accounts for up to two daughters, with an exception for twins or triplets. After her 10th birthday, she is no longer eligible, so families should open the account early. Can I withdraw from Sukanya Samriddhi before 21 years? Yes, in limited cases. After she turns 18 or passes Class 10, up to 50% of the previous year-end balance can be withdrawn for higher education. The account can be closed for her marriage after 18, and earlier on her death or on compassionate grounds after five years. Otherwise the money stays locked. What happens if I miss a Sukanya Samriddhi deposit? The account becomes a defaulted account. You can revive it during the 15-year deposit period by paying the ₹250 minimum for each missed year plus a ₹50 penalty per year. The existing balance continues to earn interest at the scheme rate even while the account is in default. Is Sukanya Samriddhi useful under the new tax regime? Partly. In the new regime you lose the section 123 deduction on deposits, but interest and maturity remain fully tax-free. An 8.2% tax-free return is still attractive against taxable FDs, though it should be weighed against the long lock-in and the possibility of higher, though uncertain, returns from equity funds. Can NRIs open a Sukanya Samriddhi account? No. The girl must be a resident Indian when the account is opened. If the family's residential status changes later, check with your post office or bank on how the account will be treated, as the scheme is designed for residents and rules on continuation should be confirmed before you move abroad. Sources: Ministry of Finance (DEA) office memorandum of 30 September 2026, as reproduced by StaffNews (https://www.staffnews.in/?p=168643) ; TaxGuru, Q3 2026-27 small savings rate table (https://taxguru.in/?p=1084242) ; Business Today, SSY rate history and benchmark (https://www.businesstoday.in/personal-finance/story/small-savings-interest-rates-today-ppf-ssy-and-scss-rates-face-september-30-review-what-investors-should-know-558796-2026-09-30) ; Business Today, Q3 FY27 rates (https://www.businesstoday.in/personal-finance/story/small-savings-scheme-interest-rates-unchanged-for-q3-fy27-check-ppf-scss-ssy-rates-558892-2026-09-30) ; Sukanya Samriddhi Account Scheme, 2019 and Ministry of Finance guidelines of August 2024 (India Post / National Savings Institute). Maturity tables are Money n Wealth calculations. How much should go into SSY versus mutual funds for your daughter? The right split depends on her age, the target course and your tax regime. Talk to Money n Wealth (/contact) for a free portfolio review. This article is for general educational purposes only and does not constitute financial advice. Figures and examples are illustrative. Please consult a qualified financial adviser for guidance specific to your situation. Money n Wealth (Predics Fintech Services Pvt Ltd) is an AMFI-registered Mutual Fund Distributor (ARN-121995) and APMI-registered PMS Distributor (APRN07444); it is not a SEBI-registered investment adviser and may earn distribution commission on investments made through it.
Frequently Asked Questions
What is the Sukanya Samriddhi interest rate for October–December 2026?
Sukanya Samriddhi Yojana pays 8.2% a year for 1 October to 31 December 2026, unchanged since it was raised from 8% on 1 January 2024. The rate is reviewed every quarter by the Ministry of Finance and applies to the entire balance, so the return on an existing account changes whenever the rate is revised.
How much will I get if I invest ₹1.5 lakh a year in Sukanya Samriddhi?
Depositing ₹1.5 lakh by 5 April every year for 15 years, at a constant 8.2%, builds about ₹71.8 lakh at the end of 21 years. You deposit ₹22.5 lakh in total and earn about ₹49.3 lakh of tax-free interest. If the average rate is 7.5%, the figure falls to about ₹65 lakh.
What is the maximum age to open a Sukanya Samriddhi account?
The girl must be below 10 years of age when the account is opened. A parent or legal guardian opens it, and each family can open accounts for up to two daughters, with an exception for twins or triplets. After her 10th birthday, she is no longer eligible, so families should open the account early.
Can I withdraw from Sukanya Samriddhi before 21 years?
Yes, in limited cases. After she turns 18 or passes Class 10, up to 50% of the previous year-end balance can be withdrawn for higher education. The account can be closed for her marriage after 18, and earlier on her death or on compassionate grounds after five years. Otherwise the money stays locked.
What happens if I miss a Sukanya Samriddhi deposit?
The account becomes a defaulted account. You can revive it during the 15-year deposit period by paying the ₹250 minimum for each missed year plus a ₹50 penalty per year. The existing balance continues to earn interest at the scheme rate even while the account is in default.
Is Sukanya Samriddhi useful under the new tax regime?
Partly. In the new regime you lose the section 123 deduction on deposits, but interest and maturity remain fully tax-free. An 8.2% tax-free return is still attractive against taxable FDs, though it should be weighed against the long lock-in and the possibility of higher, though uncertain, returns from equity funds.
Can NRIs open a Sukanya Samriddhi account?
No. The girl must be a resident Indian when the account is opened. If the family's residential status changes later, check with your post office or bank on how the account will be treated, as the scheme is designed for residents and rules on continuation should be confirmed before you move abroad.
How much should go into SSY versus mutual funds for your daughter?
The right split depends on her age, the target course and your tax regime. Talk to Money n Wealth for a free portfolio review.
