Sukanya Samriddhi Yojana (2026-27)

Sukanya Samriddhi Yojana (SSY) is a Government-backed small savings scheme intended to encourage long-term savings for the education and future financial needs of a girl child.

An account is opened in the name of the girl child by her guardian. The scheme provides a Government-notified interest rate, tax benefits subject to the applicable tax regime, and facilities for withdrawal for higher education and closure on marriage.

The scheme is presently governed by the Sukanya Samriddhi Account Scheme, 2019, notified under the Government Savings Promotion Act, 1873.

Who can open a Sukanya Samriddhi Account?

A Sukanya Samriddhi Account can be opened by a guardian in the name of a girl child who has not attained the age of 10 years on the date of opening the account.

The following conditions apply:

• Only one Sukanya Samriddhi Account can be opened in the name of one girl child.
• Ordinarily, accounts can be opened for a maximum of two girl children in one family.
• More than two accounts may be permitted in specified cases involving twins, triplets or other multiple births, subject to the documentary requirements prescribed under the scheme.
• The account is operated by the guardian until the girl child attains the age of 18 years. Thereafter, the account holder can operate the account herself after submitting the required documents.

Where can a Sukanya Samriddhi Account be opened?

A Sukanya Samriddhi Account can be opened through eligible Post Offices and authorised bank branches offering the scheme.

It is preferable not to rely on a fixed historical list of banks because banks may merge, change names or modify the branches through which the scheme is offered.

The account can also be transferred between eligible Post Offices and banks in accordance with the applicable rules and procedures.

How much can be deposited in a Sukanya Samriddhi Account?

The current deposit requirements are:

The earlier minimum deposit of ₹1,000 is no longer applicable.

If more than ₹1,50,000 is deposited during a financial year because of an accounting error, the excess amount does not qualify for interest and is required to be returned in accordance with the scheme rules.

For how many years do deposits have to be made?

Deposits can be made for 15 years from the date on which the account is opened.

This is different from the maturity period. The account itself ordinarily matures after 21 years from the date of opening.

Deposit period = 15 years
Maturity period = 21 years

The account can continue earning the applicable interest after the 15-year deposit period until maturity, subject to the scheme rules.

What happens if the minimum annual deposit is not made?

At least ₹250 must ordinarily be deposited during each financial year during the prescribed deposit period.

If this minimum amount is not deposited, the account becomes an account under default.

A defaulted account can generally be regularised before completion of the 15-year deposit period by paying:

• ₹50 for each year of default; and
• The minimum annual deposit relating to the defaulted year or years.

What is the current Sukanya Samriddhi interest rate?

As of 25 August 2026, the interest rate on Sukanya Samriddhi Accounts is:

8.2% per annum, compounded annually.

The rate is notified by the Government and may be revised from time to time. Therefore, account holders should verify the prevailing rate instead of relying on the rate applicable when the account was originally opened.

Interest is calculated for a calendar month on the lowest balance in the account between the close of the fifth day and the end of that month and is credited to the account at the end of the financial year.

Practical point: Where possible, making a deposit on or before the 5th of the month can help ensure that the additional amount is considered for calculating interest for that month.

When does a Sukanya Samriddhi Account mature?

The account ordinarily matures on completion of 21 years from the date on which it was opened.

However, the account may also be closed earlier in connection with the marriage of the account holder after she has attained 18 years of age.

For marriage-related closure, the scheme provides that closure cannot ordinarily be made earlier than one month before the intended marriage or later than three months after the marriage. Appropriate declaration and age evidence are required.

Can money be withdrawn before maturity for higher education?

Yes.

A withdrawal of up to 50% of the balance standing in the account at the end of the financial year preceding the year of application may be permitted for the higher education of the account holder.

The withdrawal is allowed after the girl child:

• Attains the age of 18 years; or
• Passes Class 10,

whichever is earlier.

The account holder is required to provide documentary evidence such as a confirmed admission offer or fee slip showing the financial requirement.

The withdrawal can be made in a lump sum or in instalments, subject to the prescribed conditions. The amount withdrawn cannot exceed the actual requirement for fees and other eligible educational expenses.

Can the account be closed prematurely?

Premature closure is permitted in certain circumstances.

Death of the account holder

In case of the death of the girl child, the account can be closed on submission of the prescribed application and death certificate. The balance together with eligible interest is paid to the guardian.

Extreme compassionate circumstances

Premature closure may also be permitted on extreme compassionate grounds, such as:

• Treatment of a life-threatening disease of the account holder; or
• Death of the guardian resulting in undue hardship.

Such closure is subject to supporting documentation and ordinarily cannot be permitted before completion of five years from the date of opening under this provision.

What are the tax benefits of Sukanya Samriddhi Yojana?

Sukanya Samriddhi enjoys favourable tax treatment, but the deduction available on the amount deposited depends on the tax regime selected by the taxpayer.

Tax treatment under the Income-tax Act, 2025

From 1 April 2026, the Income-tax Act, 2025 applies. Section 123 provides an aggregate deduction of up to ₹1,50,000 for specified eligible investments and payments contained in Schedule XV.

Schedule XV includes subscriptions to notified Government securities or deposit schemes in the name of an individual's girl child or a girl child for whom the individual is the legal guardian. This broadly carries forward the deduction treatment previously available under section 80C of the Income-tax Act, 1961.

However, the section 123 deduction is not available where income is computed under the new tax regime under section 202.

Tax treatment at a glance

Is the ₹1,50,000 deduction a separate limit for Sukanya Samriddhi?

No. The ₹1,50,000 limit is not an additional or separate SSY deduction.

For Tax Year 2026-27 onwards, the maximum ₹1,50,000 deduction under section 123 is an aggregate limit covering qualifying investments and payments falling within that provision.

Therefore, if a taxpayer has already used the full ₹1,50,000 limit through other qualifying investments, an additional deduction cannot ordinarily be claimed merely because further money was deposited in a Sukanya Samriddhi Account.

Does Sukanya Samriddhi provide a deduction under the new tax regime?

No.

Under the Income-tax Act, 2025, the new tax regime is governed by section 202. The deduction available under section 123 is not available while computing income under this regime.

• Old tax regime: Eligible SSY contribution may qualify for deduction, subject to the overall ₹1,50,000 limit.
• New tax regime: No deduction is available merely for making an SSY contribution.

The exemption applicable to eligible payments from the Sukanya Samriddhi Account is separate from the deduction for the amount invested.

What about FY 2025-26 and AY 2026-27?

This distinction is important.

The Income-tax Act, 2025 came into force from 1 April 2026. Therefore, it applies from Tax Year 2026-27 onwards.

Income relating to FY 2025-26 / AY 2026-27 continues to be governed by the Income-tax Act, 1961. Accordingly, the deduction for eligible Sukanya Samriddhi contributions for that period continues to fall under section 80C of the Income-tax Act, 1961, subject to the applicable tax regime and other conditions.

What documents are required for opening a Sukanya Samriddhi Account?

The precise KYC requirements should be confirmed with the Post Office or authorised bank where the account is being opened.

Generally, the following documents may be required:

• Birth certificate or prescribed proof of date of birth of the girl child
• Account opening form
• Guardian's identity and KYC documents
• PAN of the guardian, where applicable
• Aadhaar or another permitted identification document
• Address proof
• Additional declaration and supporting documents where an exception for twins, triplets or other qualifying multiple births is being claimed

Key features of Sukanya Samriddhi Yojana

Common mistakes to avoid

1. Using the old ₹1,000 minimum deposit: The current minimum annual deposit is ₹250.
2. Assuming deposits must continue for 21 years: Deposits are permitted for 15 years, while the account ordinarily matures after 21 years.
3. Using an old interest rate: Small savings interest rates may be revised by the Government from time to time.
4. Claiming ₹1,50,000 as a separate SSY deduction: It forms part of the overall section 123 or section 80C limit, as applicable.
5. Claiming the contribution deduction under the new tax regime: The section 123 deduction is not available under section 202.
6. Treating marriage as an education-style partial withdrawal: Marriage is dealt with separately through the account-closure provisions.
7. Using an outdated list of authorised banks: Several banks appearing in older articles have since merged or changed names.

Conclusion

Sukanya Samriddhi Yojana remains a Government-backed long-term savings scheme specifically designed for a girl child. An account can generally be opened before the girl child reaches 10 years of age, with deposits ranging from ₹250 to ₹1,50,000 per financial year.

Deposits can be made for 15 years, while the account ordinarily matures after 21 years. The current interest rate is 8.2% per annum.

From a tax perspective, eligible contributions can qualify for deduction under section 123 of the Income-tax Act, 2025, subject to the ₹1,50,000 aggregate limit and provided the taxpayer is not computing income under the new tax regime under section 202.

For FY 2025-26 / AY 2026-27, the corresponding deduction continues to be governed by section 80C of the Income-tax Act, 1961.

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