If you have a daughter, the Sukanya Samriddhi Yojana (SSY) is one of the best savings schemes you can open. It pays 8.2% completely tax-free interest — higher than PPF — and is fully government-backed. Here's the complete 2026 guide.
What Is Sukanya Samriddhi Yojana?
SSY is a government small-savings scheme created to support a girl child's education and marriage expenses. A parent or guardian opens the account, deposits regularly, and the money grows tax-free until the girl turns 21.
Key Features for 2026
| Feature | Details |
|---|---|
| Interest rate | 8.2% p.a., compounded yearly |
| Eligibility | Girl child below age 10 |
| Min / Max deposit | ₹250 / ₹1.5 lakh per year |
| Deposit period | 15 years from opening |
| Maturity | 21 years from opening |
| Tax status | EEE — fully tax-free |
Why SSY Is So Attractive
- Highest rate among safe schemes: at 8.2%, it beats PPF (7.1%) and most FDs.
- EEE tax-free: deposit, interest and maturity are all exempt.
- Government-backed: zero risk to your capital.
- 80C benefit: deposits up to ₹1.5 lakh qualify for deduction (old regime).
How Much Can It Grow?
If you deposit ₹1.5 lakh every year for 15 years at 8.2%, the account can mature (at 21 years) to roughly ₹69–70 lakh — a substantial, tax-free corpus for your daughter's higher education or marriage.
Withdrawal Rules
- Partial withdrawal: up to 50% of the balance after the girl turns 18, for education or marriage.
- Maturity: full amount at 21 years from opening.
- Premature closure: allowed in specific cases (marriage after 18, medical grounds).
How to Open an SSY Account
Visit any post office or authorised bank with the girl's birth certificate, your ID/address proof, and a photograph. You can open only one account per girl child (max two per family).
SSY vs Other Options
For a daughter's long-term goals, SSY is hard to beat on safety and tax-free returns. If you want equity growth alongside it, consider a long-term SIP — see our SIP Calculator and SIP vs lumpsum guide. Compare with other safe options in FD vs PPF vs NPS and the PPF guide.