Sukanya Samriddhi Yojana (SSY): Interest Rate, Calculator, Benefits & How to Open Account

When an individual thinks about their daughter's future, the two things that often come are her education and marriage. Both can be expensive. It is important to save money and invest it well and at the right place. While personalised investment options exist in the Indian market, the Sukanya Samriddhi Yojana (SSY) is a government initiative designed to financially secure a girl's child’s future.

It’s a simple, long-term savings plan that allows parents to save money for their girl child. In this article, we’ll take a closer look at what the Sukanya Samriddhi Scheme is, who qualifies, interest rates, return calculations, perks, how to open an account, needed documents, and the deposit/withdrawal rules you should be aware of before getting started.

What is the Sukanya Samriddhi Yojana?

Pradhan Mantri Sukanya Samriddhi Yojana is a savings scheme introduced by the government for girl children only. The scheme helps the parents build a fund for their daughter’s future requirements, such as higher education and marriage. It was launched under the Beti Bachao Beti Padhao programme, aimed at encouraging girls’ education and social awareness, and also persuading families to start saving early, though in small amounts, and continue with the same for a longer period of time to meet long-term financial goals.

A Sukanya Yojana account in the name of a girl child can be opened and operated by her parents or guardian until she attains adulthood. Deposits are to be made every year until the prescribed deposit period is completed.

SSY is not linked to the stock market, which builds confidence among families who prefer stability. The interest rate is notified by the government from time to time, making the scheme suitable for those who value safety and predictability over higher but uncertain returns.

Key Features of Sukanya Samriddhi Yojana

Here are the key features that you will find on the Sukanya Samriddhi Yojana chart:

• A minimum deposit of ₹250 and a maximum deposit of ₹1.5 Lakh can be made in a financial year.
• Only one Sukanya Samriddhi account can be opened in the name of a girl child.
• The account can be opened at post offices and authorised banks across India.
• Partial withdrawal is permitted to meet the account holder’s higher education expenses, subject to applicable rules.
• The account may be closed prematurely in the event of the girl child’s marriage, provided she has attained the age of 18 years.
• The account is transferable anywhere in India between post offices and authorised banks.
• The account matures after 21 years from the date of opening.
• Deposits made into the account are eligible for tax deduction under Section 80C of the Income Tax Act.
• Interest earned on the account is exempt from income tax under Section 10 of the Income Tax Act.

Sukanya Samriddhi Scheme Eligibility

The Sukanya Samriddhi Yojana eligibility criteria are simple but strict. It is important to understand them clearly before opening an account.

Girl Child Age Limit

You can open a Sukanya Yojana account only if the girl’s age is under 10 years old.

Who Can Open the Account

The account can be opened by:

• The parent of the girl child, or
• A legal guardian appointed for the child

The girl child must be a resident of India at the time of opening the account. If her residential status changes later, the account rules may change according to government guidelines.

Number of Accounts per Family

Only one account per girl child is permitted. These limits help ensure the scheme reaches more families and remains focused on its original purpose. The rules regarding the number of accounts are as follows:

• One Sukanya Yojana account per girl child
• Maximum two accounts per family
• The third account may be allowed in case of twin girls

Sukanya Samriddhi Yojana Interest Rate

The Sukanya Samriddhi Yojana interest rate is notified by the government. It is reviewed periodically and announced through official notifications. Once interest is credited to the account, it becomes part of the balance and continues to earn interest in the following years.

Unlike bank savings accounts, the interest rate does not change suddenly or daily. This stability is one of the main reasons many parents choose Sukanya Yojana.

Note: The government changes the interest rate periodically. You should check the latest rate before you plan your deposits.

Compounding Frequency

Pradhan Mantri Sukanya Samriddhi Yojana interest is credited once a year. This means interest is calculated on the total balance annually, including interest earned in previous years.

At first, the growth may seem limited. However, as the balance grows and the effect of compounding becomes more noticeable. This is why SSY is most effective when started early and continued patiently.

SSY vs FD vs PPF

Parents often compare the Sukanya Samriddhi Scheme with fixed deposits and PPF because all three are considered safe. However, they serve slightly different needs.

How Sukanya Yojana stands out in practice:

• Compared to FDs, the Sukanya Samriddhi Yojana usually gives better long-term growth because interest is tax-free and compounded over a longer period.
• Compared to PPF, SSY has a similar safety level but is more focused. It is designed for one clear goal rather than general retirement planning.
• SSY also encourages discipline because the money is set aside specifically for the child, not for everyday use.

For parents who want clarity and purpose, Sukanya Yojana often feels more meaningful than a general savings option.

Sukanya Samriddhi Yojana Calculator

A Sukanya Samriddhi Yojana calculator helps you estimate how much your savings may grow by the time the account matures. It is useful for planning deposits based on your income and comfort level.

How the Calculator Works

The calculator uses the following Sukanya Samriddhi Yojana details:

• Amount deposited every year or month
• Deposit period (deposits must be made for 15 years from the date the account is opened)
• Interest accumulation until maturity (21 years)
• Annual compounding

It then shows:

• Total amount invested
• Estimated interest earned
• Expected maturity value

This gives a rough but helpful idea of long-term growth.

Examples for Better Understanding

Let's assume:

• Daughter’s age is 10
• The monthly deposit amount is ₹1,000 per
• Current interest rate is 8.2%

Based on this, at the end of 21 years:

• The maturity value will be ₹5,74,570
• The investment value will be ₹1,80,000
• Maturity year will be 2047
• Interest earned will be ₹3,94,570

You can save a small amount each year. Over a long time, the money grows because of the rate of interest. This helps in building a good fund.

Sukanya Samriddhi Yojana Benefits

Sukanya Samriddhi Yojana benefits are beyond money and interest. It is made for real families where income can change, and needs can change over time.

1. Strong Safety and Trust

Sukanya Samriddhi Yojana is fully backed by the Government of India. This means the risk of losing money is extremely low. Parents do not have to worry about bank failures, market crashes or poor fund performance. This sense of safety is especially important when saving for a child’s future, where uncertainty is the biggest concern.

2. Stable and Predictable Growth

The interest rate is announced by the government and remains steady during the notified period. There are no sudden shocks or surprises.

This allows parents to plan calmly, knowing that the savings will grow in a predictable manner over many years.

3. Excellent Tax Efficiency

Below are the Sukanya Samriddhi Yojana tax benefits:

• Deposits of up to ₹1,50,000 per year qualify for tax deduction under Section 80C of the IT Act
• Interest earned is tax-free.

4. Encourages Early and Regular Saving

Because the account can be opened when the child is very young, parents are encouraged to start saving early. Even small amounts make a difference when given enough time.

For example:

• Sukanya Samriddhi Yojana monthly 1000 feels manageable
• ₹2,500 per year suits families with irregular income

Sukanya Samriddhi Yojana adapts to different earning capacities without pressure.

5. Flexible Deposits During Life Changes

Life is not always predictable. Some years, income is higher, some years it is tight. SSY allows flexibility within the yearly limits.

Parents can:

• Deposit more in good years.
• Deposit only the minimum in difficult years

This flexibility helps families continue the account without stress.

6. Dedicated Purpose Reduces Temptation

Unlike general savings accounts, SSY money is clearly marked for the child. This reduces the temptation to withdraw or spend it on short-term needs. Many parents find this emotional separation helpful. The money feels “untouchable”, which protects the long-term goal.

7. Supports Education and Marriage Planning

Partial withdrawal for education after age 18 allows parents to use the funds when they are genuinely needed, not only at final maturity. This makes SSY practical.

8. Builds Financial Discipline in the Household

Over time, SSY becomes part of the family’s financial routine. Children also grow up knowing that money has been saved for them patiently, which helps build financial awareness.

How to Open an Sukanya Samriddhi Account

Opening an SSY account is straightforward and does not require technical knowledge.

Post Office

Most post offices across India offer Sukanya Samriddhi account facilities. This is a common choice in towns and rural areas.

Bank (SBI, Axis, etc.)

Several public and private banks, including State Bank of India, Axis Bank and others, are authorised to open SSY accounts.

Offline Process

The usual steps are for Sukanya Samriddhi Yojana post office account opening:

• Visit the bank or post office.
• Collect and fill out the SSY application form.
• Submit documents.
• Make the first deposit.
• Collect the Sukanya Samriddhi Yojana passbook.

Online Availability

Some banks allow partial Sukanya Samriddhi Yojana online apply. An online facility is available for the following.

• Online deposits
• Viewing balance
• Downloading statements

How to open Sukanya Samriddhi account online? Online form fill-up is allowed in some banks, but a branch visit can be required for submission and verification.

Documents Required for Sukanya Samriddhi Yojana

The documents needed are basic and commonly available:

Banks or post offices may request additional documents if needed.

Deposit Rules

Typically:

• Minimum deposit: ₹250 per year
• Maximum deposit: ₹1.5 lakh per year

Many parents prefer making a single annual deposit instead of fixed monthly contributions. For example, a parent may deposit ₹2,500 in one instalment when cash flow permits, often after receiving a bonus or seasonal income. While such amounts may seem small on their own, they can add up meaningfully over a long period.

For most families, the focus is not on maximising returns but on maintaining the habit of saving. As long as the minimum annual deposit is met, the scheme accommodates irregular contribution patterns. This makes SSY particularly suitable for households with variable income, such as freelancers, small business owners, or those with commission-based earnings. The scheme does not require uniform deposits. It allows parents to save in a way that aligns with their financial realities.

Withdrawal Rules

Partial withdrawal is allowed after the girl turns 18, mainly for education.

Premature Closure

An SSY account may be closed before maturity in the following situations:

• Marriage-Related Closure: The account may be closed within a window starting one month before and ending three months after the girl child’s marriage.
• Change in Residential Status: Premature closure is permitted if there is a change in the account holder’s citizenship or country of residence.
• Financial Hardship: After completion of five years, the account may be closed if it is considered a financial strain due to medical reasons or the death of the parent or guardian.
• Other Circumstances: In cases not covered above, premature closure may still be allowed, but the account will earn interest at the rate applicable to post office savings accounts.

Conclusion

Pradhan Mantri Sukanya Samriddhi Yojana is not meant to impress. It is meant to endure. It does not promise extraordinary wealth. It promises preparedness. Parents who stay consistent rarely find themselves completely unready when education or marriage expenses arise. You can use this scheme as a foundation and combine it with other planning tools to reduce both financial and emotional pressure over time.

My Mudra focuses on helping individuals understand how investment schemes fit into real lives. By simplifying decisions around long-term savings and tax-efficient planning, My Mudra helps families stay consistent in long-term planning.

Also Read:
- Post Office Saving Schemes in India
- Vahli Dikri Yojana: Girl Child Scheme Explained