Sukanya Samriddhi Yojana is a small-savings scheme for a girl child below age 10. Deposits Rs 250 to Rs 1.5 lakh per year for 15 years; account matures at year 21 (or on marriage after 18). Current rate is 8.2% per annum, compounded yearly. The scheme is fully EEE: deposits qualify for 80C, interest is tax-free, maturity is tax-free. Maxing the cap (Rs 1.5L x 15 years) at 8.2% gives roughly Rs 71 lakh on maturity.
What is Sukanya Samriddhi Yojana
SSY is a Government of India small-savings scheme launched in 2015 under the Beti Bachao Beti Padhao initiative. It is operated through Post Offices and authorised banks (SBI, HDFC, ICICI, PNB, etc.).
The account is opened in a girl child's name with her parent or legal guardian as operator. Eligibility: the girl must be under 10 years at account opening. Only one account per girl child; up to two accounts per family (extra for twins or triplets).
The interest rate is reset quarterly by the Ministry of Finance. As of FY 2025-26 it stands at 8.2% per annum, compounded annually - among the highest of all government small-savings instruments.
Deposit rules and tenure
Deposit window: 15 years from account opening.
Maturity: 21 years from account opening, OR on the girl's marriage after she turns 18.
Deposit limits:
- Minimum Rs 250 per financial year (account becomes inactive otherwise)
- Maximum Rs 1,50,000 per financial year (combined across all SSY accounts under the same girl)
Between year 16 and 21, no fresh deposits are allowed but the balance keeps earning interest. Account is in lock-in until age 18 with limited partial withdrawal allowed for higher education.
Reactivation: a missed-deposit account is reactivated by paying Rs 250 plus a Rs 50 penalty per missed year.
Tax treatment: full EEE
Sukanya Samriddhi is one of only a handful of fully EEE (Exempt-Exempt-Exempt) instruments in India:
- Deposit: qualifies for 80C deduction up to Rs 1.5 lakh (shared cap with PPF, ELSS, LIC etc.) under the old regime only.
- Interest: tax-free, accrued and compounded.
- Maturity proceeds: fully tax-free, both principal and accumulated interest.
Under the new regime, no 80C deduction is available - but interest and maturity remain tax-free. So even new-regime filers benefit from the high tax-free compounding rate.
Worked example: Rs 1.5L per year for 15 years at 8.2%
Deposits: Rs 1,50,000 per year for years 1 to 15 (total contributed Rs 22.5 lakh).
No deposits in years 16 to 21 - balance keeps compounding.
Approximate balance trajectory:
- End of year 5: Rs ~9.6 lakh
- End of year 10: Rs ~24 lakh
- End of year 15 (last deposit): Rs ~46 lakh
- End of year 21 (maturity): Rs ~71 lakh
Total interest earned: roughly Rs 48.5 lakh - all tax-free.
If you also save 30% income tax on Rs 1.5L deposits for 15 years under old regime, that is Rs 6.75 lakh of additional tax saving over the deposit window. Effective post-tax CAGR exceeds 12% for an old-regime taxpayer.
Partial withdrawal and premature closure
Partial withdrawal at 18: up to 50% of the previous-year balance can be withdrawn after the girl turns 18, for higher education. Documentary proof of admission and fee structure required.
Closure on marriage after 18: account can be closed any time after the girl is 18 with marriage as cause. Affidavit needed.
Premature closure (other reasons): allowed only on:
- Death of the account holder (girl child)
- Critical illness of the girl or guardian
- Death of the guardian leaving deposits unaffordable
For compassionate-ground closures, balance is paid out at the prevailing rate. There is no general withdrawal flexibility - SSY is a long-lock-in product, comparable to PPF (15 years) but more rigid.
Run the math for your situation
Use our IN India calculator to plug in your own numbers and see exactly what you owe / save.
Parents or legal guardians can open one SSY account for each girl child below age 10. A maximum of two accounts per family (additional for twins or triplets with documentary proof).
What is the current SSY interest rate?
For FY 2025-26 the rate is 8.2% per annum, compounded annually. Rates are reset quarterly by the Ministry of Finance and notified along with other small-savings schemes.
Is SSY interest taxable?
No - SSY is fully EEE (Exempt-Exempt-Exempt). Deposits qualify for 80C (old regime), interest is tax-free, and maturity proceeds are tax-free for both old and new regime filers.
Can I withdraw before 21 years?
Only for higher education (after age 18, up to 50% of prior-year balance) or on marriage after 18. Other premature closures are allowed only on compassionate grounds (death, critical illness).
Can the deposit limit be increased above Rs 1.5 lakh?
No - the Rs 1,50,000 per financial year cap is statutory. Any extra deposit is treated as void and refunded without interest. The cap is per girl, not per account.
Key takeaways
Use the calculators below with YOUR actual numbers - generic rules can be substantially off for individual situations.
Tax brackets, contribution limits, and rate tables update annually - bookmark and check back in February-April.
Most planning decisions hinge on marginal tax rate, not effective rate.
For complex situations a fee-only fiduciary advisor or CA is usually worth the cost; for simple ones a robo-advisor suffices.
Bookmark this page - we update annually as authorities publish next year's tables.
By audience: what to focus on
Different reader types need different angles on this topic. Pick the one closest to your situation.
Salaried employees
Maximise tax-advantaged retirement contributions (EPF/401(k)/SIPP/RRSP). Check whether your country prefers the old vs new regime, employer-match thresholds, and salary-sacrifice options. Use the calculators below with your CTC / gross income.
Freelancers / self-employed
You bear higher self-employment tax + lose the employer match, but get access to higher contribution limits (Solo 401k, SEP-IRA, NPS Tier-I). Track business expenses meticulously. Quarterly estimated tax payments avoid underpayment penalty.
NRIs / expats
Tax residency rules (183-day, tie-breaker), double-taxation treaties, foreign tax credits all come into play. NRI restrictions on PPF (no new accounts) but expanded options on NPS. Cross-border income often needs specialist advice.
Retirees / pre-retirees
Sequence-of-returns risk in early retirement is the largest threat. Glide-path asset allocation, Roth-conversion analysis in low-income years, Required Minimum Distribution planning, and Medicare/healthcare gap funding (US) are the big items.
Quick reference: 10 specific scenarios
Scan the question list, expand only the rows that match your situation.
What is the most important thing to know about this topic?
The single most important takeaway is to use the calculators below with YOUR actual numbers rather than relying on rules of thumb. Personal finance is heavily sensitive to individual variables (tax bracket, time horizon, country, age, employment type, dependents). A blanket rule that works for one household can be substantially wrong for another.
Where can I find authoritative source data for this?
Always trace back to the official issuer: IRS revenue procedures for US tax brackets, CBDT notifications for India, HMRC bulletins for UK, CRA tax tables for Canada, ATO website for Australia. Avoid relying on secondary sources for the numbers that drive your tax filing.
How often do these numbers change?
Most tax brackets, contribution limits, and rate tables update annually in the budget cycle for that jurisdiction. Some (like the US Federal Reserve rates, RBI repo rate) change at policy meetings 4-8 times per year. Bookmark this page and check back in February-April for next-year updates.
Does this apply to non-resident / NRI / expat scenarios?
Cross-border situations have additional complexity (tax residency, treaty positions, foreign tax credits, FBAR/FATCA reporting). The general framework here applies but the specific numbers may differ. For multi-country income, consult a cross-border tax specialist before filing.
Yes. The math here feeds directly into retirement-corpus and FIRE calculators in the related-tools section. Most retirees model 25x annual spending as their target nest egg (the inverse of the 4% safe withdrawal rule) using these underlying tax and return assumptions.
How accurate are the calculators on this site?
Calculators use the latest published rate tables from each country's tax authority and update annually. For tax filing, ALWAYS verify with the official software or a qualified accountant. The calculators here are accurate for planning, salary negotiation, and retirement projection - not a substitute for filing software.
Are there country-specific versions of this content?
Yes. Use the country picker in the top nav to switch to India (₹), US ($), UK (£), Canada (CAD), Australia (AUD), Singapore (SGD), UAE (AED), or Germany (EUR) versions of the relevant calculators.
What's the difference between effective and marginal tax rate?
Marginal rate is the tax on your NEXT dollar of income (the top of your bracket). Effective rate is total tax divided by total income - usually much lower because progressive brackets tax earlier income at lower rates. Deductions save tax at your marginal rate, not effective. Most planning decisions hinge on marginal rate, not effective.
Is this information current?
Updated for FY 2025-26 (India), Tax Year 2025-26 (UK), Tax Year 2026 (US), Tax Year 2025 (Canada and Australia). The trust block at the top of this page shows the verified date and authority sources for the rate tables used.
Where can I get personalised advice?
For complex situations (multi-country income, equity comp, divorce, sudden inheritance, business sale), a fee-only fiduciary financial advisor or CA is worth the cost. For simple situations (single country, salary employee), the calculators here plus a robo-advisor at 0.25% AUM is usually enough.
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