SSY Returns Calculator
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What is Sukanya Samriddhi Yojana (SSY)?
Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme launched under the "Beti Bachao Beti Padhao" initiative in January 2015. It is specifically designed for the long-term financial security of a girl child — to help parents save for their daughter's higher education and marriage expenses. SSY is one of the highest-interest, fully tax-exempt (EEE) savings schemes in India.
The scheme is available at all post offices and designated public sector banks across India. The account can be opened in the name of a girl child up to the age of 10 years and is managed by the guardian until the girl turns 18.
Eligibility Criteria
- Who can open: A parent or legal guardian can open an SSY account in the name of a girl child aged 10 years or below at the time of opening.
- Number of accounts: Only one account per girl child is permitted. A family can open a maximum of two SSY accounts (one per girl child), except in the case of twins or triplets where three accounts may be permitted.
- Resident Indian: The girl child and the guardian must be resident Indians. NRIs are not eligible to open a new SSY account.
Deposit Rules
- Minimum deposit: ₹250 per financial year.
- Maximum deposit: ₹1,50,000 per financial year (across all deposits in that account).
- Deposit period: Deposits must be made for 15 years from the date of account opening — regardless of the girl's age at that time.
- Deposit frequency: You can deposit once or in multiple instalments — there is no fixed monthly or quarterly obligation.
- Default: If the minimum ₹250 is not deposited in any year, the account becomes irregular. It can be regularised by paying ₹50 as penalty per year of default along with the minimum deposit.
Maturity Rules
The SSY account matures when the girl child turns 21 years of age. However:
- Deposits are only made for the first 15 years from account opening. After that, the balance continues to earn interest at the prevailing SSY rate until maturity.
- Partial withdrawal: Up to 50% of the account balance can be withdrawn after the girl turns 18, for the purpose of higher education or marriage expenses. Proof of admission is required for education-linked withdrawal.
- Premature closure: Allowed after the girl turns 18, for marriage. Also allowed in case of death of the account holder or extreme hardship (like life-threatening illness of the guardian), subject to conditions.
SSY Calculation Formula
SSY interest is compounded annually. The calculation is done year by year:
For each year (deposit period):
Balance = (Previous Balance + Yearly Deposit) × (1 + r / 100)
For years after deposit period (no new deposit):
Balance = Previous Balance × (1 + r / 100)
Where r = Annual interest rate (%)
Account matures when girl turns 21 (total years = 21 − current age)
Balance = (Previous Balance + Yearly Deposit) × (1 + r / 100)
For years after deposit period (no new deposit):
Balance = Previous Balance × (1 + r / 100)
Where r = Annual interest rate (%)
Account matures when girl turns 21 (total years = 21 − current age)
Tax Benefits — EEE Status
SSY enjoys EEE (Exempt-Exempt-Exempt) tax status — the best possible tax treatment for any savings scheme in India:
- Exempt on Investment: Deposits qualify for deduction under Section 80C (up to ₹1,50,000 per year).
- Exempt on Interest: Interest earned each year is completely tax-free — no tax is payable even as it accumulates.
- Exempt on Maturity: The entire maturity amount (principal + interest) is received tax-free.
This EEE status makes SSY significantly more tax-efficient than PPF, FDs, or NSC for parents investing for their daughter's future.
Advantages of SSY
- Highest interest among small savings: At 8.2% p.a. (as of 2024), SSY offers one of the highest guaranteed returns among government savings schemes.
- Full EEE tax exemption: Unlike NSC or FDs, SSY interest is completely tax-free, making effective returns even higher for those in higher tax brackets.
- Government guarantee: Fully backed by the Government of India — zero default risk.
- Long compounding horizon: Even with deposits for only 15 years, the balance compounds for up to 21 years (for a newborn), creating substantial wealth through time.
- Flexible deposits: No fixed monthly obligation — you can deposit any amount between ₹250 and ₹1.5 lakh per year.
- Partial withdrawal for education: Allows parents to access 50% of the corpus for the girl's higher education needs after she turns 18.
Frequently Asked Questions
A natural or legal guardian can open an SSY account in the name of a girl child who is aged 10 years or below at the time of account opening. Only one account is allowed per girl child. A single family can open a maximum of two SSY accounts — one for each girl child. An exception is made for families with twin girls born in the second birth or triplets — they can open accounts for all such girls. The account can be opened at any post office or authorised bank branches (like SBI, Bank of Baroda, Canara Bank, etc.) across India.
The minimum deposit in SSY is ₹250 per financial year, and the maximum is ₹1,50,000 per financial year. Deposits can be made in a lump sum or in multiple instalments throughout the year. The deposit period is 15 years from the date of account opening. After that, no further deposits are required — the balance continues to earn interest until the account matures when the girl turns 21. If you fail to deposit the minimum ₹250 in any year, the account becomes "defaulted" and can be regularised by paying ₹50 penalty per defaulted year.
An SSY account matures when the girl child turns 21 years of age, irrespective of when the account was opened. Deposits are only required for the first 15 years from the account opening date. For example, if the account is opened when the girl is 3 years old, deposits are made for 15 years (until she is 18), and the account matures when she turns 21 — earning interest for 3 additional years without any new deposits. If the account is opened at birth (age 0), deposits run for 15 years and interest accrues for 6 more years (until maturity at age 21).
SSY enjoys EEE (Exempt-Exempt-Exempt) tax status — the most beneficial tax treatment available in India. First, deposits qualify for Section 80C deduction (up to ₹1,50,000 per year). Second, the interest earned every year is completely tax-free. Third, the maturity amount is also exempt from tax. This means neither the annual interest accumulation nor the lump sum received at maturity attracts any income tax — making SSY significantly more tax-efficient than Fixed Deposits, NSC, or even PPF for most investors.
Premature closure of SSY is allowed in specific circumstances only. (1) Marriage: The account can be closed after the girl turns 18 for marriage purposes (application must be submitted at least 1 month before and no more than 3 months after the marriage date). (2) Death of the account holder: The guardian can close the account and withdraw the full balance. (3) Extreme compassionate grounds: Such as a life-threatening illness of the account holder or death of the guardian, subject to approval from the competent authority. Partial withdrawal of up to 50% of the balance is also allowed after the girl turns 18 for the purpose of higher education.