Sukanya Samriddhi Yojana 2026 — The Complete Guide
Sukanya Samriddhi Yojana (SSY) is the Government of India's flagship small-savings scheme for a girl child — and on a pure numbers basis it is hard to beat. It currently pays 8.2% per annum (Q1 FY 2026-27), compounded annually, and it is fully EEE tax-free: the deposit gets a Section 80C deduction, the yearly interest is tax-free, and the entire maturity is tax-free. The one rule most parents miss is the gap between the 15-year deposit window and the 21-year maturity — your money keeps compounding at 8.2% for six years after your last deposit. This calculator models that full 21-year arc, and uniquely shows how the timing of your deposit within each year can swing the final figure by lakhs.
How the SSY Maturity Is Calculated
SSY uses straightforward annual compounding, but with two phases:
Balanceyear = (Balanceprev + Deposit) × (1 + r)
- Deposit phase (years 1–15): you add up to ₹1.5 lakh each year and the whole balance earns 8.2%.
- Growth phase (years 16–21): no new deposits are allowed, but the accumulated balance keeps compounding at 8.2% — this is where a large chunk of the final corpus is built.
- r = the annual interest rate (8.2% for the current quarter), credited at the end of each financial year on the lowest monthly balance.
In the schedule above, the highlighted rows are the six growth-phase years with no deposit — notice how the interest column keeps climbing even though you have stopped paying in. That compounding tail is the whole point of leaving the account untouched to maturity.
SSY Key Rules at a Glance (2026)
| Rule | 2026 position |
|---|---|
| Interest rate | 8.2% p.a., compounded annually (Q1 FY 2026-27) |
| Who can open | Parent/guardian, for a girl child below 10 years |
| Accounts per family | Max 2 (one per girl; exception for twins/triplets) |
| Minimum deposit | ₹250 per financial year |
| Maximum deposit | ₹1,50,000 per financial year |
| Deposit period | 15 years from the date of opening |
| Maturity | 21 years from opening (or on marriage after 18) |
| Partial withdrawal | Up to 50% after the girl turns 18 / passes class 10, for education |
| Tax status | EEE — 80C deduction, tax-free interest, tax-free maturity |
| Lapsed account | Revive with ₹250 + ₹50 penalty per defaulted year |
Why SSY Beats a Fixed Deposit for a Daughter's Goal
A bank FD and SSY can quote similar headline rates, but the after-tax gap is enormous because FD interest is taxed at your slab every year while SSY interest is never taxed. Consider ₹1.5 lakh a year for 15 years:
| SSY @ 8.2% (EEE) | FD @ 7.5% (30% slab) | |
|---|---|---|
| Tax on interest | Zero — fully exempt | ~30% every year on accrual |
| Effective post-tax rate | 8.2% | ~5.25% |
| 80C deduction | Yes (old regime) | Only 5-year tax-saver FD |
| Liquidity | Long lock-in (a feature for this goal) | More flexible |
The trade-off is real: SSY locks money for the long term and caps you at ₹1.5 lakh a year. But for the specific job of building a tax-free corpus for a daughter's higher education or marriage, the combination of a high government-backed rate and zero tax is currently unmatched among fixed-income options in India.
SSY vs PPF — the Quick Comparison
- Rate: SSY 8.2% vs PPF 7.1% — SSY wins on rate today.
- Tax: both are EEE tax-free.
- Cap: both cap at ₹1.5 lakh per year, and the ₹1.5 lakh 80C ceiling is shared across them — so you cannot claim ₹1.5 lakh on each.
- Eligibility: SSY is only for a girl child under 10; PPF is open to anyone.
- Tenure: SSY matures in 21 years; PPF in 15 (extendable in 5-year blocks).
Many parents run both: SSY for the daughter-specific corpus and PPF for general long-term savings — within the combined ₹1.5 lakh 80C limit.
Common SSY Mistakes to Avoid
- Depositing late in the year. Interest is on the lowest balance between the 5th and month-end. Deposit by 5 April for a full year of interest — over 21 years this is worth lakhs.
- Missing the ₹250 minimum. Skip it and the account goes inactive; reviving costs a ₹50 penalty per defaulted year. Set a standing instruction.
- Withdrawing the whole balance at 18. Only 50% can be taken at 18 for education; pulling out early forfeits the high-compounding final years.
- Opening after age 10. The account must be opened before the girl turns 10 — there is no exception.
- Assuming 8.2% is fixed. The rate is reset quarterly by the government; it has historically ranged from about 7.6% to 8.4%. Your real maturity depends on the path of future rates.
Frequently Asked Questions
What will ₹1.5 lakh a year in SSY become at maturity?
At the current 8.2% rate, depositing ₹1.5 lakh at the start of each of the first 15 years builds about ₹71.8 lakh by the 21st year, from ₹22.5 lakh of total deposits — and every rupee of it is tax-free. Depositing at the end of each year instead lands closer to ₹66.4 lakh.
Can I deposit more than ₹1.5 lakh in a year?
No. Deposits above ₹1,50,000 in a financial year are not accepted (or are refunded without interest). You can split the ₹1.5 lakh across as many instalments as you like during the year, but for maximum interest a single lump sum at the start of the year is best.
Is the SSY interest rate guaranteed for the whole 21 years?
No. The government notifies the rate every quarter. This calculator assumes the rate you enter holds for the full term so you can see the headline potential; in reality your maturity will reflect the actual quarterly rates over 21 years.
What happens to the account after 15 years of deposits?
You stop depositing, but the account stays open and keeps earning the prevailing SSY rate on the full balance until it matures at year 21. These six no-deposit years are highlighted in the schedule and contribute a large share of the final corpus.
Is SSY better than a child mutual fund or ULIP?
For a capital-guaranteed, tax-free, fixed-income corpus, SSY is the strongest option. Equity mutual funds can deliver more over 15+ years but carry market risk and their gains are taxed (LTCG at 12.5% above ₹1.25 lakh). Many parents use SSY as the safe core and a low-cost equity SIP as the growth layer, rather than choosing one or the other.
Can both parents claim 80C on the same SSY deposit?
No. A given deposit can be claimed under Section 80C by only one parent. The overall 80C ceiling of ₹1.5 lakh also covers EPF, PPF, life insurance, ELSS and other eligible items combined.