Sukanya Samriddhi Yojana: how the girl-child savings scheme actually works

Family Life & Relationships · theAsianparent · Updated 15 August 2026

One of the few government schemes that is genuinely worth the paperwork — a long-term, tax-free, government-backed account for a daughter.

Who can open one, and how

A parent or legal guardian can open an account for a girl child below the age of ten. One account per girl, and a maximum of two accounts per family — with an exception where twins or triplets take the number beyond two.

Open it at any post office or an authorised bank branch. You will need the girl's birth certificate, the guardian's identity and address proof, and photographs. The account can be transferred anywhere in India if you move.

The minimum deposit is small — a few hundred rupees to open — and the maximum is ₹1.5 lakh per financial year across the account. Deposits are made for the first fifteen years; the account then continues to earn interest until it matures.

The account matures 21 years from opening, or on the girl's marriage after she turns 18, whichever is earlier.

The money side

The interest rate is set by the government each quarter, and has historically been among the highest of the small savings schemes — better than a bank fixed deposit over the same period.

The tax treatment is the attraction: deposits qualify for deduction under Section 80C, and both the interest and the maturity amount are tax-free. Very few Indian instruments give that combination with a government guarantee.

The trade-off is liquidity. This money is locked away, deliberately. Up to 50% can be withdrawn after the girl turns 18 for higher education, and premature closure is allowed only in specific circumstances such as the account holder's death or documented medical need.

Miss a year's minimum deposit and the account becomes dormant; it can be revived with a small penalty plus the missed minimums. Set a standing instruction and forget about it.

Is it the right place for your money

For a long-horizon, no-risk, tax-free corpus tied to a daughter's education or adulthood, it is hard to beat — the guarantee and the tax treatment do the work.

What it is not: a growth investment. Over eighteen years, equity mutual funds have historically returned more, with volatility and no guarantee. Many families do both — SSY for the safe base, a monthly equity SIP for growth.

Two things it should not replace: an emergency fund of a few months' expenses, and adequate health and term insurance for the earning parents. A locked-in savings account is no help in a hospital emergency.

And a point worth making in Indian households: this is the girl's money. Open it, fund it, and tell her about it as she grows — a daughter who knows there is an account in her name learns something more useful than the interest rate.

Frequently asked questions

Q: Can I open an account for a girl who is eleven? — No. The age limit at opening is ten years.

Q: Can NRIs open or continue an account? — The scheme is for resident Indian girls. If the girl's residency status changes, the rules require the account to be closed or to stop earning interest — check the current position with the bank or post office, since the rules have been revised over time.

Q: What happens if we cannot deposit for a couple of years? — The account goes dormant and can be revived by paying a penalty of ₹50 per missed year plus the minimum deposits for those years.

Q: What about a son? — SSY is only for girls. For a son, the equivalent approaches are PPF, a minor's savings account, and mutual fund SIPs in the parent's name earmarked for the child.

FamilyMoneySchemes

Reviewed by

Nakul Phatak — CEO, theAsianparent India & Indonesia
Head of theAsianparent India; father of one
Roshni Chugani — Head of Marketing, theAsianparent India & Singapore
12 years in the mother-and-baby space; mother of two

Published by: theAsianparent editorial team