Sukanya Samriddhi Yojana (SSY): 8.2% tax-free interest for a girl child, explained for one family (2026)

By Dr. Shrawan Kumar Pathak

Start with one number. For the quarter from 1 April 2026 to 30 June 2026, the government has kept the Sukanya Samriddhi Yojana interest rate at 8.2 percent a year, and that interest is fully tax-free. The Finance Ministry notified this on 30 March 2026, and it is the same rate that has held for several quarters now. Among all the small-savings schemes run through the post office, this is the highest rate on offer, ahead of even the Public Provident Fund.

So what does 8.2 percent do over time? Say a family puts in Rs 1.5 lakh a year, the maximum allowed, for the full 15-year deposit window. They will have paid in Rs 22.5 lakh of their own money. If the rate held near 8.2 percent the whole way, the account could mature at roughly Rs 69 lakh when the girl is 21. The extra Rs 46 lakh or so is compound interest doing the heavy lifting over 21 years. Treat that figure as an illustration at the current rate, not a promise, because the rate is reset every three months and can move up or down.

Now bring it down to one family. A mother and father in a small town have a baby daughter. They cannot spare Rs 12,500 every month, but they can manage Rs 3,000. Over 15 years that is Rs 5.4 lakh of deposits, and at the same illustrative 8.2 percent the account could reach close to Rs 16 lakh by the time she turns 21. That is a college fund built quietly, one modest deposit at a time, with the interest exempt from tax at every stage. This guide walks through how it works, how to open the account at a post office or bank, the rules that trip people up, and what to do if a deposit or a closure gets stuck.

The interest rate on SSY is not fixed for life. The government reviews small-savings rates every three months and notifies a fresh rate for the coming quarter. For April to June 2026 the rate is 8.2 percent, unchanged from the previous quarter. The next review will set the rate for July to September 2026, so it pays to check the latest notified rate before you assume a number.

Two things soften this uncertainty. First, the interest is compounded yearly, so even small differences add up in your favour over 21 years. Second, the money is locked in for a long time, which means the rate you earn is an average of many quarterly rates, not a single bet on today's number. The interest for each year is worked out on the lowest balance in the account between the close of the 5th day and the end of the month, so it helps to deposit early in the month rather than late.

The scheme is narrow on purpose. It is meant for the girl child, so the rules are strict about age and number of accounts.

• The account is for a girl child below age 10. A parent or legal guardian opens it in the girl's name. You cannot open one after she turns 10.
• One account per girl. A girl can have only one SSY account in her name, whether at a post office or a bank.
• A maximum of two girls per family. Most families can open accounts for at most two daughters. There is one exception. If the second birth gives twins or triplets, or if the first birth itself is twins or triplets, a third account is allowed with proof.
• The girl and guardian should be resident in India. If the girl becomes a non-resident or gives up Indian citizenship later, the account has to be closed.

If your name search or eligibility is unclear at the counter, ask the postmaster or bank officer to show you the rule in the scheme guidelines before you walk away. The rules are public, and a polite question usually settles the matter.

The money rules are simple to remember.

• Minimum Rs 250 in a year keeps the account active. Miss even that, and the account turns into a default.
• Maximum Rs 1.5 lakh in a year. Anything above this earns no interest and is refunded, so there is no point overshooting.
• You can deposit in cash, cheque, demand draft, or online transfer. There is no fixed monthly amount. Pay in one lump sum or in many small deposits across the year, as your cash flow allows.
• Deposits run for 15 years from the date you open the account. After that you stop paying in, but the balance keeps earning the notified interest until maturity.
• The account matures 21 years from the opening date. So an account opened when the girl is 4 matures when she is 25, and one opened at birth matures when she is 21.

The tax treatment is the strongest part. SSY carries EEE status, which means exempt at all three stages. Your deposit qualifies for a deduction under Section 80C, the interest that builds up each year is tax-free, and the final maturity amount is tax-free too. Few savings products in India give all three exemptions at once.

The table below shows what different yearly deposits could grow to, if the rate stayed near 8.2 percent for the full term. These are rounded illustrations, not guaranteed payouts, because the rate is reset every quarter.

The pattern is the same at every level. You pay in for 15 years, the balance keeps compounding for 21 years, and the interest ends up larger than the money you put in. The lower your deposit, the smaller the corpus, but the EEE tax break still applies fully.

Picture the same family in two versions.

In the first version, the parents save what they can in a normal bank savings account that pays about 3 percent, and the interest is taxable. By the time their daughter needs college fees, the small pile has barely kept pace with prices, and the interest they did earn was eaten into by tax. When the admission letter arrives, they scramble for a loan.

In the second version, the parents open an SSY account in the girl's first year and pay in steadily. The deposit earns 8.2 percent tax-free, the Section 80C deduction trims their yearly tax, and the corpus compounds untouched for two decades. When she turns 18, they draw down part of the balance for her course fees under the education-withdrawal rule, and the rest keeps growing to maturity. Same income, same family, a different ending, because the money sat in the right place and the tax stayed out of it.

1. Pick a post office or an authorised bank. Any India Post branch works. So do major banks like SBI, PNB, Bank of Baroda, HDFC, ICICI and Axis. Choose the one nearest to you, since you may visit again for deposits or passbook updates.
2. Collect and fill the SSY opening form. Ask for the Sukanya Samriddhi account form at the counter. Fill in the girl's name, the guardian's name, and the opening deposit amount.
3. Submit KYC and the girl's documents. You will need the girl's birth certificate, the guardian's Aadhaar and PAN, and a photo. The officer verifies these against the originals.
4. Pay the opening deposit. A minimum of Rs 250 opens the account. You can pay more, up to Rs 1.5 lakh in the year, by cash, cheque or transfer.
5. Collect the passbook. The branch issues a passbook in the girl's name that records every deposit and the interest credited each year. Keep it safe, since it is your main proof of the account.
6. Set a yearly reminder. Mark a date so you never miss the minimum deposit and slip into default. Online banking deposits make this easier if your bank supports them.

There is no fee to open an SSY account. If anyone at a private agent's desk asks for a charge to make the account, that is not part of the scheme.

The 15-year deposit window is where many accounts run into trouble. If you do not pay the minimum Rs 250 in a year, the account is treated as a default, and a defaulted account earns interest but cannot take fresh deposits normally until it is revived.

Reviving it is not hard. You can revive a defaulted account any time before the 15-year deposit window ends. Pay Rs 50 as a penalty for each missed year, plus the minimum Rs 250 for each of those years. So if you missed two years, you pay Rs 100 penalty and Rs 500 of minimum deposits to bring it back to good standing. The sooner you fix a default, the smaller the pile of penalties.

This is the single most common avoidable mistake. A family opens the account with good intent, life gets busy, and a couple of years slip by with no deposit. Set a standing instruction or a calendar reminder so a small lapse never grows into a frozen account.

The money is locked for a reason, but the scheme does allow access at the right moments.

• Partial withdrawal at 18 for education. Once the girl turns 18 or passes class 10, you can withdraw up to 50 percent of the balance at the end of the previous financial year. This is meant for her higher-education fees, and you may be asked for the admission or fee proof.
• Full maturity at 21. The account matures 21 years from opening. At that point the whole balance, deposits plus all the tax-free interest, is paid out to the girl.
• Closure on marriage after 18. If the girl is getting married after she turns 18, the account can be closed. The application is allowed from one month before the marriage to three months after, with age proof.
• Premature closure on hard grounds. After 5 years from opening, the account can be closed early in genuine cases such as the death of the account holder or a life-threatening illness of the girl, or other grounds the rules permit. Closure on softer grounds may earn only the savings-account rate on the balance.

• Account turned inactive. No deposit for a year makes it a default. Revive it by paying Rs 50 penalty for each missed year plus the minimum Rs 250 per year, before the 15-year window closes.
• Third account refused. Two girls is the normal cap. A third account is allowed only when twins or triplets are involved, and you must show proof of the multiple birth.
• Deposit above the cap earns nothing. Anything over Rs 1.5 lakh in a year does not earn interest. Stay within the limit so every rupee works for you.
• Withdrawal denied before 18. The partial-withdrawal door opens only at 18 or after class 10, and only for up to half the previous year's balance. Full payout waits for the 21-year maturity or a marriage after 18.
• Interest looks lower than expected. Interest is figured on the lowest balance between the 5th and the end of each month, so depositing late in the month can cost you a little. Pay before the 5th where you can.

If a deposit, a withdrawal, a closure or a transfer is stuck and the counter gives no clear answer, a written Right to Information request to the post office or bank circle often moves the file, since the public authority then has to reply in writing within 30 days. Draft a short, factual request with the free AI RTI Drafter, and follow the full filing and appeal steps in The RTI Playbook.

Sukanya Samriddhi Yojana was launched in 2015 by the Union government led by Prime Minister Narendra Modi, as part of the Beti Bachao Beti Padhao campaign to help families build a savings fund for their daughters. It is run through India Post and authorised banks under the Ministry of Finance. You can see it alongside every other central welfare scheme on the All Modi-era Sarkari Yojana index 2014 to 2026.

For April to June 2026 the rate is 8.2 percent a year, tax-free, as notified by the Finance Ministry on 30 March 2026. The rate is reviewed every quarter, so check the latest notified rate before you plan.

Up to 50 percent of the previous year's balance at age 18 or after class 10 for higher education. The full amount is paid at maturity, which is 21 years from opening, or on marriage after 18.

A minimum of Rs 250 keeps the account active and a maximum of Rs 1.5 lakh earns interest. You choose how much in between, paid in one go or in parts.

The account goes into default but is not lost. Revive it before the 15-year window ends by paying Rs 50 penalty for each missed year plus the minimum Rs 250 per year.

Yes, if you are her legal guardian. Otherwise a parent has to open it. The girl must be below 10 at the time of opening.

Yes. The deposit gets a Section 80C deduction, the interest each year is tax-free, and the maturity amount is tax-free too. This is the EEE status.

Normally only two. A third account is allowed when twins or triplets are involved, with proof of the multiple birth.

• Mahila Samman Savings Certificate for women savers
• PMMVY Matru Vandana maternity benefit
• Janani Suraksha Yojana for safe delivery
• National Scholarship Portal for student aid
• Atal Pension Yojana for old-age income
• National Pension System for retirement
• PM Jeevan Jyoti Bima Yojana life cover
• PM Suraksha Bima Yojana accident cover
• PM Kisan Samman Nidhi for farm families
• PM Jan Dhan account to receive and save the money
• All Modi-era Sarkari Yojanas 2014 to 2026
• Step-by-step apply guides, status-check guides and document checklists

• Ministry of Finance, small-savings interest rates for Q1 FY 2026-27, notified 30 March 2026
• National Savings Institute and India Post, Sukanya Samriddhi Account scheme rules
• Official portal: indiapost.gov.in
• Launched: 2015 under Beti Bachao Beti Padhao
• Helpline: India Post 1924

Last reviewed: 30 June 2026.

Estimate the maturity amount, total interest and yearly growth for SSY using the free Post Office Return Calculator. It covers 12 small-savings schemes including NSC, KVP, MIS, PPF, SCSS, RD, Time Deposit and SSY, and uses the latest notified interest rates. No login. Educational only. Confirm with India Post before investing.