What is the SSY interest rate for 2026? Sukanya Samriddhi Yojana interest rate for Q2 FY 2026-27 (July to September 2026) is 8.2% per annum, compounded annually and fully tax-free. Contributions up to Rs 1.5 lakh yearly qualify for Section 80C deduction under old tax regime. Maturity amount is also fully tax-free. Account opens at post offices and authorized banks for girls under 10.
If you are a parent or legal guardian of a daughter under 10, Sukanya Samriddhi Yojana is one of the highest-paying government-backed savings instruments available in India. It pairs a strong sovereign return with a fully tax-free outcome, which is why it consistently beats PPF for parents with a long horizon and a girl child to plan for.
This guide covers everything you need to operate an SSY account end to end: eligibility, the account opening process, the contribution rules that most parents trip over, the current interest rate, the EEE tax status, partial and final withdrawal rules, premature closure conditions, and the common mistakes that quietly cost you money.
SSY Calculator 2026: Calculate Your Returns
SSY Calculator 2026
Annual Contribution
₹150,000
Total Contributed
₹2,250,000
Interest Earned
₹4,387,818
Maturity Amount
₹6,637,818
Maturity Details
Account matures when daughter turns 26 years old (21 years from opening).
All amounts are fully tax-free. Interest and maturity are exempt under EEE treatment.
⚠️ Calculator Assumptions:
- Interest rate: 8.2% per annum (Q1 FY 2026-27), compounded annually
- Deposits continue for 15 years, then account earns interest only
- Account matures 21 years from opening date, not from birth
- Rates can change quarterly : verify at nsiindia.gov.in
What Sukanya Samriddhi Yojana Actually Is
SSY is a small savings scheme launched in 2015 under the Beti Bachao Beti Padhao initiative. It is governed by the Sukanya Samriddhi Account Rules, 2019 and operated through India Post and authorised commercial banks. The account is opened in the name of the girl child but operated by the guardian until the girl turns 18.
The objective is to build a tax-efficient corpus for the girl child's higher education and marriage. Two design choices make the scheme attractive: a returns rate that is typically the highest in the small savings family, and full EEE tax treatment that removes friction at every stage.
Who Can Open an SSY Account
Eligibility is narrower than most parents assume. The rules are:
- The girl child must be below 10 years of age at the time of account opening.
- The account can be opened only by a natural guardian (parent) or a legal guardian appointed by a court.
- A family can hold a maximum of two SSY accounts, one in the name of each girl child.
- More than two accounts are allowed only where twins or triplets are born in the first or second order of birth, on an affidavit by the guardian with birth certificates. If the first birth already results in two or more girls, no further account is allowed for a girl of the second birth.
- Under Ministry of Finance guidelines effective 1 October 2024, an account opened by a grandparent who is not the legal guardian must have its guardianship transferred to a natural guardian (living parent) or legal guardian, and accounts opened beyond the family limit are closed as irregular.
- A HUF cannot open an SSY account. Karta of a HUF planning long-term tax-efficient savings for a daughter must open in personal capacity.
Where and How to Open the Account
SSY accounts can be opened at:
- Any post office across India.
- Authorised public-sector and private banks, including SBI, PNB, Bank of Baroda, Canara Bank, HDFC Bank, ICICI Bank, and Axis Bank.
Some banks support online account opening through their net banking and mobile banking apps; most still require a one-time branch visit for KYC. Documents to keep ready: girl child's birth certificate (mandatory, no exceptions), guardian's PAN and Aadhaar, address proof, and the SSY account opening form (Form-1).
Contribution Rules
The deposit rules are simple but unforgiving on the minimum side.
- Minimum deposit: Rs 250 per financial year (deposits in multiples of Rs 50).
- Maximum deposit: Rs 1,50,000 per financial year, in any number of installments.
- Active contribution period: 15 years from the date of opening (not until maturity).
- Mode: cash, cheque, demand draft, or electronic transfer.
If the minimum Rs 250 is not deposited in a financial year, the account becomes an account under default. It can be regularised during the 15-year deposit window by paying a Rs 50 penalty per defaulted year plus the missed minimum deposits. Even if it is never regularised, the whole balance keeps earning interest at the scheme rate till closure.
Deposits above Rs 1.5 lakh in a financial year are not permitted. If an excess is accepted by an accounting error, it earns no interest and is returned to the depositor immediately. Deposit only what qualifies.
Interest Rate
The interest rate on SSY is reset every quarter by the Ministry of Finance and announced through a Small Savings notification. For the July to September 2026 quarter (Q2 FY 2026-27), the rate is 8.2% per annum, compounded annually, unchanged from the April to June 2026 quarter. Compare this with PPF at 7.1% for the same quarter; SSY pays roughly 110 basis points more for a similar EEE structure.
Interest is calculated on the lowest balance between the close of the 5th and the last day of each month, and credited to the account at the end of the financial year. Always verify the current quarter's rate on nsiindia.gov.in before making a deposit decision, since the rate can change.
SSY Interest Rate History (FY 2025-26 & 2026-27)
| Quarter | Period | SSY Rate | PPF Rate | Difference |
|---|---|---|---|---|
| Q4 FY 2025-26 | Jan-Mar 2026 | 8.2% | 7.1% | +110 bps |
| Q1 FY 2026-27 | Apr-Jun 2026 | 8.2% | 7.1% | +110 bps |
| Q2 FY 2026-27 | Jul-Sep 2026 | 8.2% | 7.1% | +110 bps |
Note: Rates are reviewed quarterly by the Ministry of Finance. The rate for October to December 2026 had not been notified when this guide was updated. Verify quarterly updates at nsiindia.gov.in.
EEE Tax Treatment
SSY is one of the few instruments in India that is fully Exempt-Exempt-Exempt:
- Investment stage: Contributions up to Rs 1,50,000 per financial year qualify for deduction under Section 80C of the Income Tax Act 1961 (for AY 2026-27 returns). This is the same Rs 1.5 lakh cap that pools 80C, 80CCC, and 80CCD(1) under Section 80CCE. From Tax Year 2026-27 onwards, the corresponding section under the Income Tax Act 2025 is Section 123 read with Schedule XV. The deduction continues, only the numbering changes.
- Accrual stage: Interest earned each year is fully tax-free in the guardian's hands.
- Maturity stage: The lump sum received on maturity or final closure is fully tax-free.
This treatment is available only under the old tax regime. The new regime under Section 115BAC (and its successor in the 2025 Act) does not allow Section 80C deductions, though the interest and maturity continue to be exempt under specific small-savings provisions.
For a wider walkthrough of how SSY fits inside the Rs 1.5 lakh cap, see our Section 80C deductions list for AY 2026-27. For how the 2025 Act renumbers small-savings deductions, see the Income Tax Act 2025 explainer.
Withdrawal Rules
SSY allows partial withdrawal before maturity and full closure on maturity:
- Partial withdrawal is allowed once the girl turns 18 years of age or has passed Class 10, whichever is earlier. Up to 50% of the prior-financial-year balance can be withdrawn, in lump sum or in five annual installments, for higher education expenses. Proof of admission and fee receipt is required.
- Closure on marriage is allowed on the girl's own application for her intended marriage, with a notarised declaration on non-judicial stamp paper and proof of age showing she will be at least 18 on the date of marriage. It cannot be made earlier than one month before or later than three months after the date of marriage.
- Maturity closure happens 21 years from the date of opening. Maturity is keyed to the account opening date, not to the girl's age. An account opened on April 5, 2015 matures on April 5, 2036, even if the girl turns 21 earlier or later.
- Premature closure is otherwise permitted only in two situations. On the death of the account holder, the account is closed immediately on a death certificate; interest is paid at the SSY rate till the date of death and at the Post Office Savings Account rate after that. On extreme compassionate grounds, such as a life-threatening disease of the account holder or the death of the guardian, the accounts office may allow closure, but not before five years from opening; the balance is paid with interest at the SSY rate.
Account Transfer
SSY accounts are freely transferable between any post office and any authorised bank anywhere in India, free of charge, on proof of change of residence of the guardian or the account holder. The transfer does not reset interest accrual or the 15-year deposit window.
Common Mistakes Parents Make
- Missing the Rs 250 minimum, which turns the account into a default account that costs a Rs 50 penalty per year to regularise.
- Depositing above Rs 1.5 lakh in a financial year, expecting the excess to earn interest. It does not.
- Assuming the account matures when the girl turns 21. Maturity is keyed to the opening date, not the birth date.
- Karta of a HUF trying to open SSY under HUF PAN. SSY can only be opened by a natural or legal guardian in personal capacity.
- Continuing deposits after Year 15. After 15 years from opening, no fresh deposits are accepted, but the account continues to earn interest until maturity in Year 21.
- Claiming SSY deduction under the new tax regime. Section 80C is unavailable in the new regime; the contribution still earns interest but offers no upfront deduction.
SSY vs PPF: When SSY Wins
For parents with a girl child, the maths usually favours SSY:
| Feature | SSY | PPF |
|---|---|---|
| Interest rate (Q2 FY 2026-27) | 8.2% | 7.1% |
| Annual deposit | Rs 250 to Rs 1.5 lakh | Rs 500 to Rs 1.5 lakh |
| Maturity | 21 years from opening | 15 years (extendable in blocks of 5) |
| Tax treatment | EEE (80C only in old regime) | EEE (80C only in old regime) |
| Partial withdrawal | Up to 50% for education, after age 18 or Class 10 | Up to 40% (limits apply), once a year after 5 years from end of year of opening |
Where the parent does not have a girl child, or wants more flexibility on tenure and partial withdrawal, PPF is the default. Where both options are open, SSY's higher rate over a fixed long horizon makes it the clear winner for the daughter's corpus, with PPF used for any contribution above the Rs 1.5 lakh that goes into SSY.
Tax Garden Can Help
Picking SSY is the easy part. Pairing the contribution with the right regime, getting it correctly into Schedule VI-A of your ITR, and reconciling it against your AIS at filing time is where most claims silently fall apart. Tax Garden's tax compliance services handle the full ITR cycle for individuals and SME owners with flat-fee pricing and zero surprises.
For broader pre-filing prep, see our guide on AIS, Form 26AS, and TIS reconciliation before filing.
Frequently Asked Questions
What is the current SSY interest rate?
The Sukanya Samriddhi Yojana rate has been 8.2% per annum, compounded yearly, through FY 2025-26 and the notified quarters of FY 2026-27. The Ministry of Finance resets small savings rates every quarter, and the interest is credited at the end of each financial year on the lowest balance between the 5th and the last day of each month. Check nsiindia.gov.in for the rate applying to the current quarter.
Can I claim Section 80C deduction on SSY contribution under the new tax regime?
No. Section 80C is available only under the old tax regime. Under the new regime, SSY deposits give no upfront deduction, but the interest credited each year and the maturity amount remain tax-free. If SSY is part of your 80C planning, compare the old and new regime on your full income before choosing when you file.
When does an SSY account mature?
An SSY account matures 21 years from the date of account opening, not from the girl's date of birth. An account opened on June 1, 2014 will mature on June 1, 2035, regardless of the girl child's age at that point.
What happens if I miss the Rs 250 minimum deposit in a year?
The account becomes a default account. It can be revived at any time within the 15-year deposit period by paying the minimum Rs 250 for each year of default plus a penalty of Rs 50 for each defaulted year. Balances in a default account continue to earn interest at the scheme rate, so reviving it is usually worthwhile.
When can I withdraw money from an SSY account before maturity?
A partial withdrawal of up to 50% of the balance at the end of the preceding financial year is allowed once the girl turns 18 or passes Class 10, whichever is earlier, for her higher education. The account can also be closed early for her intended marriage (not earlier than one month before or later than three months after the marriage, and she must be at least 18 on the marriage date), on her death, or after five years on extreme compassionate grounds such as her life-threatening illness or the guardian's death.
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Sources
This guide is verified against nsiindia.gov.in (National Savings Institute, Q1 FY 2026-27 small savings rate notification), the Sukanya Samriddhi Account Rules, 2019 as published by India Post, Ministry of Finance quarterly small savings notifications, the Income Tax Act 1961 (Section 80C provisions for AY 2026-27), the Income Tax Act 2025 (Section 123 read with Schedule XV for Tax Year 2026-27 onwards), and confirmatory coverage from ClearTax, Bajaj Finserv, BankBazaar, and Tax2Win. Interest rates and operational rules may change with each quarterly notification; always reconfirm the current rate before opening or contributing to an SSY account.
