Question 1

What is Sukanya Samriddhi Yojana and who can open it?

Accepted Answer

Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme for the girl child, launched under Beti Bachao Beti Padhao. Any parent or legal guardian can open an SSY account for a girl child below age 10. Maximum two accounts per family (one per girl child, third allowed only for twins/triplets). The account can be opened at any post office or designated bank.

Question 2

What is the current SSY interest rate?

Accepted Answer

The current SSY interest rate is 8.2% per annum (FY 2024-25), compounded annually. This is one of the highest government-guaranteed rates available in India. The rate is reviewed quarterly by the Ministry of Finance. SSY enjoys EEE (Exempt-Exempt-Exempt) tax status — deposits qualify for Section 80C, interest is tax-free, and maturity is tax-free.

Question 3

What is the minimum and maximum annual deposit for SSY?

Accepted Answer

Minimum annual deposit is ₹250 (reduced from ₹1,000 in 2019) and maximum is ₹1,50,000 per financial year. Deposits are required for the first 15 years from account opening. After that, no deposits are needed but interest continues until maturity at 21 years. Missing the minimum deposit incurs a ₹50 penalty per year plus the minimum deposit to reactivate.

Question 4

When does the SSY account mature?

Accepted Answer

The SSY account matures 21 years after the date of opening, regardless of the girl's age at opening. If opened at age 0, it matures when she turns 21. If opened at age 10, it matures at age 31. Partial withdrawal of up to 50% is allowed after the girl turns 18 for higher education or marriage. Full maturity payout requires the girl to be at least 18.

Question 5

Is SSY better than PPF for my daughter?

Accepted Answer

SSY offers a higher interest rate (8.2%) compared to PPF (7.1%), both with EEE tax status. For the same ₹1.5L annual deposit, SSY yields approximately ₹69.3L at maturity vs PPF's ~₹40.7L over 15 years (PPF can be extended). However, SSY has a longer lock-in (21 years), is only for girl children, and cannot be extended. For girls under 10, SSY is mathematically superior; use PPF for other family members.

Question 6

Can I withdraw from SSY before maturity?

Accepted Answer

Partial withdrawal is allowed after the girl turns 18: up to 50% of the previous year's closing balance, only for higher education or marriage. Premature closure is allowed after 5 years in exceptional cases: death of the girl child, life-threatening illness, or change in residency status (NRI). Transfer between post offices and banks is allowed without any charge.

Question 7

What happens if I miss a year's deposit in SSY?

Accepted Answer

Missing the minimum annual deposit of ₹250 causes the account to become "inactive." To reactivate, you must pay the minimum deposit for the missed year(s) plus a ₹50 penalty per missed year. Interest continues to accrue on the existing balance even during inactive years, but you cannot make deposits until reactivated. It is important to maintain at least the minimum deposit every year.

Sukanya Samriddhi Calculator — SSY Maturity Value