When Priya was born, her grandparents in Lucknow asked her parents one question: what are you saving for her education? A common answer in Indian homes is the Sukanya Samriddhi Yojana, a government savings scheme only for girls. You put money in for 15 years, the account runs for 21, and the interest is set by the government and tax free.
The scheme’s legal name is the Sukanya Samriddhi Account Scheme, 2019. It is offered at post offices and authorised banks. By December 2025, according to a government backgrounder, more than 4.53 crore accounts had been opened, with deposits of over ₹3.33 lakh crore. This guide covers who can open an account, how much to deposit, how interest works, when money can come out for education or marriage, and how tax applies.
Who can open a Sukanya Samriddhi Yojana account
A parent or legal guardian opens the account in the name of a girl who has not yet turned 10 on the date of opening. The girl is the account holder; the guardian runs the account until she turns 18. After that she operates it herself by submitting the required documents.
- One account per girl. A girl can have only one account in India, at a post office or a bank.
- Two girls per family. A family can open accounts for a maximum of two daughters.
- Twins and triplets. More than two accounts are allowed if twins or triplets are born in the first or second order of birth, with an affidavit and birth certificates. This exception does not apply to a second birth if the first birth already gave two or more surviving girls.
You need the girl’s birth certificate, the guardian’s KYC documents (identity and address proof, plus PAN or Form 60) and the account opening form.
Deposits: how much and for how long
The account opens with at least ₹250. After that, the minimum is ₹250 in each financial year and the maximum is ₹1.5 lakh, in multiples of ₹50. You can pay in one lump sum or in as many instalments as you like.
Deposits are made only for the first 15 years from the date of opening. For the remaining six years the account keeps earning interest without fresh money. If a bank or post office accepts more than ₹1.5 lakh in a year by mistake, the excess earns no interest and is returned.
Missed a year?
If the ₹250 minimum is not paid in a year, the account is treated as in default. You can regularise it any time within the 15-year deposit period by paying ₹50 as a penalty for each year of default along with the minimum deposit for those years. The scheme says that if a defaulted account is not regularised in time, the whole balance still earns the scheme rate until closure.
| Feature | Rule |
|---|---|
| Eligible girl | Below 10 years on the date of opening |
| Accounts | One per girl; two girls per family (more for twins or triplets) |
| Yearly deposit | ₹250 minimum, ₹1.5 lakh maximum, multiples of ₹50 |
| Deposit period | 15 years from opening |
| Maturity | 21 years from opening |
| Education withdrawal | Up to 50% of the previous year-end balance, after age 18 or Class 10 |
| Rate for Oct to Dec 2026 | 8.2% a year, compounded yearly |
Interest rate and how it is calculated
The Sukanya Samriddhi Yojana rate is notified by the Ministry of Finance every quarter, along with other small savings schemes. A Ministry of Finance office memorandum dated 30 September 2026 kept all small savings rates for October to December 2026 unchanged from the previous quarter. India Post lists the Sukanya Samriddhi Account rate as 8.2% a year, calculated yearly and compounded yearly.
Interest for each calendar month is worked out on the lowest balance between the close of the 5th day and the end of the month. It is credited once, at the end of the financial year, even if the account moves between a bank and a post office during the year. Depositing before the 5th, and ideally early in the financial year, earns the most.
As an illustration, if you deposited ₹50,000 at the start of each year for 15 years and the rate stayed at 8.2% for all 21 years (it will not necessarily), the account would hold roughly ₹23.9 lakh at maturity on ₹7.5 lakh deposited. Work out your own figures on the compound interest calculator.
Withdrawal for higher education
Once the girl turns 18 or passes Class 10, whichever comes first, she can withdraw up to 50% of the balance at the end of the previous financial year for her education. She needs a confirmed admission offer or a fee slip from the institution showing the amount required.
The money can come out in one lump sum or in instalments, at most one a year, for up to five years. Each withdrawal is limited to the actual fees and charges shown in the admission offer or fee slip, within the 50% cap.
As an illustration, if the balance on 31 March was ₹12 lakh and the first-year fees are ₹3 lakh, she can draw ₹3 lakh, not ₹6 lakh. The rest keeps earning interest.
Maturity and closure for marriage
The account matures 21 years after the date of opening. An account opened for a two-year-old in 2026 therefore matures in 2047, when she is 23. On maturity she applies with the closure form and receives the balance with interest.
The account can also be closed before 21 years for her marriage, once she is 18. She must give a declaration on non-judicial stamp paper, attested by a notary, with proof that she will be at least 18 on the date of marriage. Closure is allowed no earlier than one month before the marriage and no later than three months after it.
A government backgrounder notes that an account not closed at maturity continues to earn interest at the Post Office Savings Account rate, which is much lower. So plan the closure date.
Premature closure in hard times
The scheme allows early closure only in narrow cases:
- Death of the girl. The account is closed on production of the death certificate. The balance and interest up to the date of death go to the guardian; for the period after death, the Post Office Savings Account rate applies.
- Extreme compassionate grounds. These include medical support for a life-threatening disease of the girl or the death of the guardian. The bank or post office must be satisfied with full documents and record its reasons. This closure is not allowed before five years from opening, and the scheme rate is paid.
Outside these cases and the marriage rule, the money stays in until maturity, which is the point of the scheme.
Tax treatment of the Sukanya Samriddhi Yojana
India Post’s scheme page states that deposits qualify for the ₹1.5 lakh savings deduction long known as section 80C, and that the interest earned is tax free. The maturity amount also comes to the girl tax free.
From 1 April 2026 the Income-tax Act, 2025 replaced the 1961 Act and renumbered its sections. The ₹1.5 lakh deduction for specified savings continues under the new Act, but it is not available in the new tax regime, which is now the default. If you file under the new regime, you still get tax-free interest but no deduction for the deposit. Check which regime suits you on the income tax calculator.
Running the account year to year
Most of the work is in the first visit. After that, the routine is simple: one or more deposits each year, a check that the passbook or statement shows the year’s interest after 31 March, and an eye on the girl’s age.
A few practical habits help:
- Fix a deposit month. Many families pay the full year’s amount in April, so the money earns interest from the first month of the financial year. Others pay monthly; in that case pay by the 5th.
- Keep the 15-year date in mind. Deposits stop after 15 years from opening. Anything you would have put in after that has to go somewhere else.
- Update records when she turns 18. The account then passes to her control, and she must submit her own documents to operate it.
- Moving cities is not a problem. The account can be transferred between post offices and banks, and the year’s interest is still credited at the end of the financial year.
- Add a nominee. It speeds up any claim if something goes wrong.
As a rough guide to the scale of saving, a family putting in the full ₹1.5 lakh at the start of every year for 15 years would deposit ₹22.5 lakh. At an assumed 8.2% a year held for all 21 years, that could grow to about ₹71.8 lakh. These are illustrations only: the rate is reset every quarter and the final figure will differ.
Is the Sukanya Samriddhi Yojana right for your daughter?
The scheme suits parents who want a guaranteed, government-backed fund for a daughter’s higher education or marriage and can commit money for 15 years. Its current rate of 8.2% is the joint highest on India Post’s list of small savings schemes, level with the Senior Citizens’ scheme, though it is reset each quarter.
The trade-off is liquidity. Only half the balance can come out for education before maturity, and only against fee documents. Parents saving for a son, or wanting more flexibility, might look at the PPF calculator to compare a Public Provident Fund account, which has its own 15-year lock-in and withdrawal rules.
Many families use both. Because the ₹1.5 lakh deduction limit under the old regime is a single combined cap for all eligible savings, splitting money between the two schemes does not raise the tax benefit. It only spreads the money across two accounts with different maturity dates, which can be useful when a daughter’s college fees and a parent’s retirement fall in different years.
Checklist before you open an account
- Your daughter is below 10 and has no other account anywhere in India.
- You have her birth certificate and your own KYC documents.
- You can deposit at least ₹250 every year for 15 years; set a reminder for April.
- Pay before the 5th of the month to earn that month’s interest.
- Keep fee slips and admission letters ready when withdrawing for education.
- Close the account at maturity, or within the marriage window, so it does not fall back to a low rate.
This guide is general information, not personal advice. Confirm current rules and the latest quarterly rate at your post office or bank before you invest.
