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Tax Guide

Sukanya Samriddhi Yojana (SSY): 8.2% Interest, Fully Tax-Free

Mar 31, 2026·4 min read

SSY offers 8.2% annual interest with EEE (Exempt-Exempt-Exempt) tax status — investment is tax-free (Section 80C), interest is tax-free, and maturity is tax-free. Available for girl children below 10 years.

Key Features

FeatureDetails
Interest Rate8.2% p.a. (Q4 FY 2025-26)
Minimum DepositRs 250/year
Maximum DepositRs 1,50,000/year
Deposit Period15 years from account opening
Maturity21 years from opening or girl's marriage after 18
Tax BenefitEEE — Section 80C deduction + tax-free interest + tax-free maturity
EligibilityGirl child below 10 years (max 2 accounts for 2 daughters)
Where to OpenPost office or authorized banks

SSY vs Other Tax-Saving Options

FactorSSYPPFELSSTax FD
Interest/Returns8.2%7.1%12-15% (market)6.5-7%
Lock-in21 years15 years3 years5 years
Tax on ReturnsNil (EEE)Nil (EEE)LTCG > Rs 1.25LTaxable at slab
RiskZeroZeroMarket riskZero
80C EligibleYesYesYesYes

Maturity Calculation Example

If you invest Rs 1,50,000/year for 15 years (total investment: Rs 22,50,000) at 8.2% interest, the maturity value after 21 years is approximately Rs 73-75 lakh. That's Rs 50+ lakh in tax-free interest income over the period.

Partial Withdrawal

50% of the balance at the end of the previous financial year can be withdrawn after the girl turns 18, for higher education purposes. This is a partial withdrawal, not a closure — the remaining amount continues to earn interest.

Frequently Asked Questions