Note (September 2026): This article earlier called the scheme “PMSSY”, which is the acronym of the Pradhan Mantri Swasthya Suraksha Yojana, a health-infrastructure scheme; the girls’ savings scheme described here is the Sukanya Samriddhi Yojana (SSY). The minimum deposit (Rs 250, not Rs 1,000), withdrawal and maturity rules have also been corrected.
Sukanya Samriddhi Yojana (SSY), often searched as “Pradhan Mantri Sukanya Samriddhi Yojana”, is a Government of India savings account for girls below 10 years of age. A parent or guardian deposits Rs 250 to Rs 1.5 lakh a year for 15 years; the account matures 21 years after opening and earns 8.2% a year (July-September 2026), with tax-free interest.
Key Takeaways
- The correct name is Sukanya Samriddhi Yojana (SSY), notified as the Sukanya Samriddhi Account Scheme, 2019. “PMSSY” is a different, health-sector scheme.
- SSY pays 8.2% a year as of the July-September 2026 quarter, the highest rate among India’s small savings schemes alongside the Senior Citizens’ Savings Scheme.
- Accounts can be opened for a girl below 10 years, with Rs 250 to Rs 1.5 lakh deposited per financial year for 15 years.
- The account matures 21 years after opening; up to 50% can be withdrawn earlier for education once the girl turns 18 or passes Class 10.
- Deposits qualify for the Rs 1.5 lakh deduction only under the old tax regime; interest and maturity proceeds are tax-free.
This guide explains the Sukanya Samriddhi Yojana (SSY), the Government of India’s small savings scheme for girls.
Having a baby girl? As a parent, there are various aspects you need to keep in mind in raising a girl in this society. One of the most important things you need to do is “Savings for Her Future”. With this in mind, the Government of India offers a dedicated savings scheme for girls, the Sukanya Samriddhi Yojana (SSY), officially the Sukanya Samriddhi Account Scheme.
Sukanya Samriddhi Yojana Account Benefits, Interest Rate And Forms
Many Indian families have long treated the cost of a daughter’s education and marriage as a financial burden. Through the Sukanya Samriddhi Yojana, the Government of India encourages parents to plan for those costs from her early years, so that small, regular savings grow into a meaningful fund by the time she needs it.
1) What Is Sukanya Samriddhi Yojana (SSY)?
Sukanya Samriddhi Yojana (SSY) is a Government of India small savings scheme that can be opened only in the name of a girl child. Prime Minister Narendra Modi launched it on 22 January 2015 in Panipat, Haryana, as part of the “Beti Bachao Beti Padhao” Campaign. This savings scheme is meant to save money to meet the education and marriage expense of a girl child.
If you’re looking for the complete information of the scheme including:
- Advantages of Sukanya Samriddhi Yojana.
- Eligibility Criteria to Open a Sukanya Samriddhi Yojana Account.
- How to Open an Account etc.
2) Advantages of Sukanya Samriddhi Yojana
The below mentioned are few of the important advantages that you will enjoy by joining under this scheme.
Higher Interest Rate: SSY pays one of the highest rates among India’s small savings schemes: 8.2% a year, compounded annually, as of the July-September 2026 quarter (the rate has stayed at 8.2% since 1 January 2024). The Ministry of Finance reviews small savings rates every quarter, so the rate can change; check India Post or your bank for the current figure.
Tax Benefits: SSY is an exempt-exempt-exempt (EEE) investment. Under the old tax regime, deposits count toward the Rs 1.5 lakh deduction formerly under Section 80C, which became Section 123 (read with Schedule XV) of the Income-tax Act, 2025 from 1 April 2026. The interest earned and the maturity amount are tax-free.
Savings Period: The long tenure is the scheme’s defining feature. The maturity of this account is 21 years from the date of opening of the account. Deposits are needed only for the first 15 years. For her education, up to 50% of the balance at the end of the previous financial year can be withdrawn once she turns 18 or passes Class 10, as a lump sum or in yearly instalments for up to five years.
Decided to open a Sukanya Samriddhi Yojana account? The step-by-step process is in section 5 below.
We all know that parents find it difficult to make arrangements for the study and marriage of their girl child. But by enrolling this scheme, it will be easier for them.
3) Key Rules of the Sukanya Samriddhi Yojana (SSY)
- The account is opened by the girl’s natural or legal guardian and is operated by the guardian until she turns 18.
- The girl must be below 10 years of age on the date the account is opened.
- The minimum deposit is Rs 250 per financial year (it was Rs 1,000 until 2018) and the maximum is Rs 1,50,000; after the first deposit, amounts go in multiples of Rs 50.
- The amount can be deposited during the financial year April to March.
- The interest rate is set by the government every quarter, so check India Post or your bank for the current rate.
- Deposits are made for 15 years from the date of opening; the account matures 21 years from the date of opening, and the balance keeps earning interest in years 16 to 21 without further deposits.
4) Who Is Eligible for a Sukanya Samriddhi Yojana Account?
- A girl below 10 years of age is eligible; each girl can have only one account, and a family can open accounts for at most two girls (three if twins or triplets are born).
- Non-resident Indians (NRIs) cannot open an account; the girl must be a resident Indian, and any later change in her citizenship or residence must be reported to the post office or bank.
5) How to Open a Sukanya Samriddhi Yojana Account at a Post Office or Bank
Step #1 – Visit the nearby post office or bank.
Step #2 – Get the account opening form (Form-1) and fill it in, with help from the staff if needed.
Step #3 – Attach the copies of the following documents:
- Birth Certificate of a Girl Child.
- Identity and address proof (KYC) of the parent or guardian, including Aadhaar and PAN.
Step #4 – Submit the documents with the completed form at the counter, tell the official you want to open a Sukanya Samriddhi Yojana account, and pay the initial deposit of at least Rs 250.
Step #5 – The official will check the application form and attached documents. If everything is okay, he will process your request.
Step #6 – Once the account is opened, a passbook is issued; later deposits can be made in cash, by cheque, or online where your bank or the India Post Payments Bank app supports it.
Condition for Withdrawing Money
- The full balance can be withdrawn when the account matures, 21 years after the date of opening (not when the girl turns 21).
- For her higher education, up to 50% of the balance at the end of the previous financial year can be withdrawn once she turns 18 or passes Class 10, against proof of admission.
- No interest is paid after the account completes 21 years, so the money should be withdrawn at maturity; the account can also be closed early for her marriage once she is 18.
This guide covers the information needed to open a Sukanya Samriddhi Yojana account. Confirm the current interest rate and document list with your post office or bank before applying.
Starting early gives a Sukanya Samriddhi Yojana account the most years of tax-free compounding for a daughter’s education and marriage. 🙂
It sits alongside other central schemes: Pradhan Mantri Jan Dhan Yojana is the banking-access one.
Is It PMSSY or SSY? Clearing Up the Name
The girls’ savings scheme is the Sukanya Samriddhi Yojana, abbreviated SSY. It is notified by the Department of Economic Affairs, Ministry of Finance, as the Sukanya Samriddhi Account Scheme, 2019, which took effect on 12 December 2019 and replaced the earlier 2016 rules. Many websites add “Pradhan Mantri” to the name because the Prime Minister launched it, but that prefix is not part of the official name.
PMSSY stands for the Pradhan Mantri Swasthya Suraksha Yojana, a Ministry of Health and Family Welfare scheme announced on 15 August 2003. According to the ministry, PMSSY sets up AIIMS-like institutions and upgrades government medical colleges to correct regional gaps in tertiary healthcare. It has no savings account, no eligibility for girls and no application process for the public.
As of September 2026, the Sukanya Samriddhi Yojana has not been renamed, merged or closed. It remains open for new accounts at post offices and authorised banks, and the Finance Ministry said in January 2025 that more than 4 crore SSY accounts had been opened nationwide.
Sukanya Samriddhi Yojana at a Glance
| Feature | Rule (as of September 2026) |
|---|---|
| Official name | Sukanya Samriddhi Account Scheme, 2019 (Sukanya Samriddhi Yojana, SSY) |
| Run by | Ministry of Finance, Department of Economic Affairs; offered through post offices and authorised banks |
| Who can open | Natural or legal guardian of a girl below 10 years of age |
| Accounts allowed | One per girl; two per family (three for twins or triplets) |
| Deposit limits | Minimum Rs 250 and maximum Rs 1,50,000 per financial year |
| Deposit period | 15 years from the date of opening |
| Maturity | 21 years from the date of opening |
| Interest rate | 8.2% a year, compounded annually (July-September 2026 quarter) |
| Partial withdrawal | Up to 50% of the previous year-end balance, for education, after age 18 or Class 10 |
| Tax | Deposit deduction under the old regime; interest and maturity tax-free |
What Is the Current Sukanya Samriddhi Yojana Interest Rate?
The Sukanya Samriddhi Yojana interest rate is 8.2% a year for the July-September 2026 quarter, which the Ministry of Finance announced on 30 June 2026. The rate was raised from 8.0% to 8.2% from 1 January 2024 and has not changed since. The rate for October-December 2026 is due to be announced by the end of September 2026.
SSY rates have been higher in the past; for example, Business Standard reported a rate of 9.2% for 2015-16. Because rates are reset quarterly, the rate in force when you open the account is not locked in for 21 years.
How is SSY interest calculated?
SSY interest is calculated on the lowest balance between the fifth day and the last day of each month, and is credited once a year at the end of the financial year. Depositing on or before the 5th of a month (ideally by 5 April for a yearly lump sum) earns interest for that full month.
How Much Can an SSY Account Grow?
The figures below are an illustration only. They assume the whole year’s deposit is made by 5 April each year for 15 years and that the rate stays at 8.2% for all 21 years, which is unlikely because the rate is reviewed every quarter.
| Yearly deposit | Total deposited (15 years) | Approximate value at 21 years |
|---|---|---|
| Rs 12,000 (Rs 1,000 a month) | Rs 1,80,000 | About Rs 5.7 lakh |
| Rs 1,50,000 (maximum) | Rs 22,50,000 | About Rs 71.8 lakh |
Actual maturity values depend on the rates declared each quarter and on when deposits are made, so treat these numbers as a rough guide, not a promise.
SSY vs PPF: Which Is Better for a Daughter?
The Sukanya Samriddhi Yojana and the Public Provident Fund are both government-backed, tax-free small savings schemes, but they suit different goals. SSY pays more and is built around a girl’s education and marriage; a PPF account is open to any resident Indian and gives more flexibility.
| Point | Sukanya Samriddhi Yojana | Public Provident Fund |
|---|---|---|
| Interest (July-September 2026) | 8.2% | 7.1% |
| Who can open | Guardian of a girl below 10 | Any resident Indian |
| Yearly deposit | Rs 250 to Rs 1.5 lakh | Rs 500 to Rs 1.5 lakh |
| Tenure | 21 years (deposits for 15) | 15 years, extendable in 5-year blocks |
| Tax | EEE | EEE |
The Rs 1.5 lakh deduction limit under the old regime is shared across all eligible investments, including SSY, PPF, EPF contributions and life insurance premiums under the old Section 80C, so splitting money between them does not raise the limit.
Documents Needed to Open an SSY Account
- Account opening form (Form-1) from the post office or bank
- Birth certificate of the girl child
- Identity and address proof of the parent or guardian
- Aadhaar and PAN of the guardian, plus passport-size photographs
Since April 2023, the Ministry of Finance has required Aadhaar for small savings accounts: a depositor who opens an account without it must submit the Aadhaar number within six months, or the account is frozen. PAN must also be furnished once deposits or balances cross the limits set in that notification. Check post office working hours before visiting.
Withdrawal, Premature Closure and Maturity Rules
When can money be withdrawn from SSY?
A partial withdrawal of up to 50% of the balance at the end of the preceding financial year is allowed for the girl’s education once she turns 18 or passes Class 10. It can be taken as one lump sum or in instalments, no more than one a year, for up to five years.
Can an SSY account be closed early?
An SSY account can be closed before 21 years for the girl’s marriage once she is 18, from one month before to three months after the wedding date. It can also be closed on the account holder’s death, or after five years on extreme compassionate grounds such as a life-threatening illness, as allowed by the scheme.
What happens at maturity?
The account matures 21 years after the date of opening. The balance, including interest, is paid to the account holder on application with identity, address and citizenship documents. No interest is earned after the 21-year term, so there is no benefit in leaving the money in the account.
What If You Miss a Deposit?
An SSY account that does not receive the minimum Rs 250 in a financial year becomes an account in default. It can be revived at any time within the 15-year deposit period by paying the minimum Rs 250 for each year missed plus a penalty of Rs 50 for each year of default.
Accounts Opened by Grandparents: Guardianship Rules
Guidelines issued by the Department of Economic Affairs, effective 1 October 2024, deal with irregularly opened small savings accounts. SSY accounts opened by grandparents who are not the girl’s legal guardians must have their guardianship transferred to a natural guardian (a living parent) or a legal guardian. If more than two accounts were opened in one family in breach of the scheme, the extra accounts are closed as irregular.
Common Mistakes to Avoid
- Waiting too long: the account must be opened before the girl turns 10, and each year of delay shortens the compounding period.
- Missing the Rs 250 minimum, which puts the account in default and adds a Rs 50 yearly penalty.
- Assuming the rate is fixed; it is reviewed every quarter.
- Leaving money in the account after 21 years, when it no longer earns interest.
- Expecting a tax deduction under the new tax regime, which does not allow it.
Who Should Consider Sukanya Samriddhi Yojana?
SSY suits parents of a girl under 10 who want a low-risk, government-backed, tax-free fund for her higher education or marriage and can commit to at least 15 years of deposits. The main drawbacks are the long lock-in, limited liquidity before she turns 18, and returns that may lag equity investments over two decades.
SSY works best alongside other central schemes: the Atal Pension Yojana for a guaranteed pension, the Pradhan Mantri Suraksha Bima Yojana for low-cost accident cover, and the Employees’ Provident Fund for salaried retirement savings.
Frequently Asked Questions
Is Sukanya Samriddhi Yojana the same as PMSSY?
No. Sukanya Samriddhi Yojana (SSY) is a savings scheme for girls run by the Ministry of Finance. PMSSY is the Pradhan Mantri Swasthya Suraksha Yojana, a Ministry of Health and Family Welfare scheme that builds AIIMS-like hospitals and upgrades government medical colleges.
What is the Sukanya Samriddhi Yojana interest rate now?
The Sukanya Samriddhi Yojana interest rate is 8.2% a year, compounded annually, for the July-September 2026 quarter. It has been 8.2% since 1 January 2024, and the government reviews it every quarter.
Can grandparents open a Sukanya Samriddhi account?
Only a natural or legal guardian can open a Sukanya Samriddhi account. Under guidelines effective 1 October 2024, accounts opened by grandparents who are not legal guardians must be transferred to a parent or legal guardian.
Is Sukanya Samriddhi Yojana tax-free under the new tax regime?
The interest and maturity amount from Sukanya Samriddhi Yojana are tax-free, but the deduction on deposits is available only under the old tax regime. From 1 April 2026 that deduction sits in Section 123 of the Income-tax Act, 2025, which replaced Section 80C.
What happens to an SSY account after 21 years?
An SSY account matures 21 years after it was opened and stops earning interest after that. The account holder should apply to close it and withdraw the full balance.
Can an SSY account be opened after a girl turns 10?
No. A Sukanya Samriddhi Yojana account can be opened only for a girl below 10 years of age. For an older child, parents often use a PPF account or other savings in their own name instead.
