Daughter's SSY or parent's SCSS: how long is the money locked, and how much can you put in?

Two small-savings questions often come up in one family: a newborn daughter's Sukanya Samriddhi account (SSY), and a retiring parent's Senior Citizens' Savings Scheme account (SCSS). Both are governed by short scheme texts under the Government Savings Promotion Act, 1873, and both answer the "how much" and "for how long" questions precisely. This article reads those texts: the Sukanya Samriddhi Account Scheme, 2019 (notified vide G.S.R. 914(E) dated 12 December 2019, amended vide G.S.R. 288(E) dated 5 May 2020) and the Senior Citizens' Savings Scheme, 2019 (notified vide G.S.R. 916(E) dated 12 December 2019, amended vide G.S.R. 287(E) dated 5 May 2020, with the deposit ceiling raised vide G.S.R. 240(E) dated 31 March 2023).

At a glance

Sukanya Samriddhi: who can open, and how many accounts

"The account may be opened by one of the guardian in the name of a girl child, who has not attained the age of ten years as on the date of opening of the account." (para 3(1), Sukanya Samriddhi Account Scheme 2019) "Every account holder shall have a single account under this Scheme." (para 3(2)) The application in Form-1 is accompanied by the girl child's birth certificate and the guardian's documents (para 3(3)).

A family limit sits in the same paragraph, and it is the one planners most often miss: "An account under this Scheme may be opened for a maximum of two girl children in one family." (para 3(4)) "Family" is defined as "a unit consisting of a person and his spouse (both or either of whom are alive or deceased) and their children, adopted or otherwise." (para 2(1)) Two provisos relax the cap for twins or triplets born in the first or second order of birth, on an affidavit by the guardian supported by birth certificates, but the second proviso says the relaxation does not apply to a second-order girl child if the first order of birth already resulted in two or more surviving girl children.

Sukanya Samriddhi: how much can go in

• Minimum: an initial deposit of ₹250 and later deposits in multiples of ₹50, "subject to the condition that a minimum of two hundred and fifty rupees shall be made as deposit in a financial year in one account." (para 4(1))
• Ceiling: "The total amount deposited in an account shall not exceed one lakh fifty thousand rupees in a financial year." Any excess accepted through an accounting error earns no interest and is returned to the depositor. (para 4(2) and proviso)
• Period for deposits: "Deposits may be made in the account till the completion of a period of fifteen years from the date of opening of the account." (para 4(3))
• Default: an account without the minimum in a year is "under default"; it may be regularised within the fifteen years "on payment of a penalty of fifty rupees for each year of default along with the minimum annual deposit in respect of the defaulted years." (para 4(4))

The ceiling is per account per financial year. A financial year, as the scheme defines it, runs from 1 April to 31 March (para 2(1)).

Sukanya Samriddhi: twenty-one years from opening

The scheme defines maturity itself: "'maturity' means maturity of an account on completion of a period of twenty-one years from the date of its opening." (para 2(1)) The closure paragraph repeats it as operative text: "The account shall mature on completion of a period of twenty-one years from the date of its opening." (para 9(1))

Twenty-one years runs from opening, not from birth. Open on the day a girl is born and maturity falls in her twenty-second year of life; open when she is just short of ten and the account runs until she is about thirty-one. Deposits stop at fifteen years, so in the later years the balance only earns interest.

Operation follows age: "The account shall be operated by the guardian till the account holder attains the age of eighteen years. The account shall be operated by the account holder herself after attaining age of eighteen years by submitting necessary documents." (para 6(1))

Early exits and part withdrawal

Three routes exist before twenty-one years.

• Marriage. "The closure of the account may also be permitted before completion of twenty-one years if the account holder on an application makes a request for such closure for the reason of intended marriage of the account holder on furnishing of a declaration duly signed on non-judicial stamp paper attested by the notary supported with proof of age confirming that the applicant will not be less than eighteen years of age on the date of marriage." The window is narrow: "no such closure shall be allowed before one month from the date of the intended marriage or after three months from the date of marriage." (para 9(2) and proviso)
• Death of the account holder. The account is closed on an application in Form-2 with the death certificate, and the balance with interest to the date of death is paid to the guardian. (para 7(1))
• Extreme compassionate grounds. The accounts office may allow premature closure where, for example, the account holder needs medical support in a life-threatening disease or the guardian has died, but "no premature closure of an account under this sub-paragraph shall be made before completion of five years from the date of opening of the account." (para 7(3) and proviso)

Separately, up to fifty per cent of the preceding year-end balance may be withdrawn for education on Form-3 once the holder is eighteen or has passed tenth standard, against an offer of admission or fee-slip, in instalments of not more than one per year for a maximum of five years. (para 8)

At maturity or permitted marriage closure, "On an application in Form-4 by the account holder, the balance outstanding along with interest as applicable under paragraph 5 shall be payable to the account holder." (para 9(3))

Senior Citizens' Savings Scheme: who can open

An individual may open an account who "has attained the age of sixty years on the date of opening of the account", or who has attained fifty-five but not sixty and has retired on superannuation or otherwise, provided the account is opened "within one month of the date of receipt of the retirement benefits" with proof of disbursal and an employer's certificate. Retired defence personnel (excluding civilian defence employees) may open at fifty, subject to the other conditions. (para 3(1), Senior Citizens' Savings Scheme 2019)

Senior Citizens' Savings Scheme: how much can go in

"The account shall be opened with a minimum deposit of one thousand rupees or any sum in multiples of one thousand rupees not exceeding thirty lakh rupees." For an account opened under the retirement-benefit route, the proviso adds: "the deposits in the account specified under clause (ii) of sub-paragraph (1) of paragraph 3, shall be restricted to the retirement benefits received, or thirty lakh rupees, whichever is lower." (para 4(1) and proviso) The scheme's explanation lists what counts as retirement benefits, including Provident Fund dues, gratuity, commuted value of pension, cash equivalent of leave and ex-gratia under a voluntary retirement scheme.

The thirty-lakh figure is the amended one. The scheme text records that the words "fifteen lakhs" were replaced by "thirty lakh" vide G.S.R. 240(E) dated 31 March 2023, in both paragraph 4(1) and paragraph 3(7). A source quoting fifteen lakh is quoting the pre-amendment text.

Three more rules shape how the ceiling works in practice:

• One deposit only: "There shall be only one deposit in the account." (para 4(2)) The ceiling is therefore a single lump-sum decision, not an annual allowance.
• Excess is refunded: where a deposit above the ceiling has been made, "the accounts office shall, refund the excess deposit to the account holder immediately", and the excess carries Post Office Savings Account interest until refunded. (paras 4(3) and 5(6))
• Several accounts share one ceiling: "An account holder may operate more than one account under this Scheme subject to the condition that the deposits in all the accounts taken together shall not exceed the maximum limit as specified under paragraph 4." (para 3(3))

Spouses and joint accounts

"An individual may open an account in individual capacity, or jointly with spouse." (para 3(4)) In a joint account the first holder's age decides eligibility, there is no age limit for the second applicant, and "the whole amount of deposit in a joint account shall be attributable to the first account holder only." (paras 3(5) and 3(6))

The headroom point is in sub-paragraph (7): "Both the spouses can open single account and joint accounts with each other with the maximum deposit of upto thirty lakhs rupees in each account provided both are individually eligible to open the account." Each eligible spouse therefore has an account-level ceiling of ₹30 lakh, so placing everything in one spouse's name leaves the other's ceiling unused where both qualify. Read that together with para 3(3): the ceiling is applied to the accounts an account holder operates taken together.

Senior Citizens' Savings Scheme: five years, then three more

"The deposit made at the time of opening of the account shall be paid on or after the expiry of five years or after the expiry of eight years where account was extended under paragraph 8 from the date of the opening of the account, on an application in Form-3." (para 7(1))

The extension is its own paragraph: "The account holder may extend the account for a further period of three years by making an application in Form-4 within a period of one year from the date of maturity." It is deemed made from the date of maturity whatever the date of application, and is "available only once." (para 8(1) to 8(3)) Note the form: closure is Form-3, but the extension request is Form-4. An extended account can be closed any time after one year from extension without deduction (para 8(4)).

Leaving early

An SCSS holder may close at any time on Form-2. Before one year, interest already paid is recovered from the deposit; after one year but before two, one and a half per cent of the deposit is deducted; on or after two years, one per cent. Multiple withdrawals are not permitted. (para 6)

Reading the two schemes side by side

SSY is a long, front-loaded commitment: the time runs from opening, so opening later does not shorten it, and no extension exists in the text. SCSS is a single deposit with a five-year clock and one three-year extension.

Their early-exit logic differs. SSY is gated by events: marriage with paperwork and a one-month-before to three-months-after window, death, or compassionate hardship after five years. SCSS is gated by time and cost: any time, at a stepped deduction. Expecting an SSY extension or an SCSS marriage exception has no basis in either text.

The forms differ and are easy to swap. SSY: Form-4 for maturity or marriage closure. SCSS: Form-3 on maturity, Form-4 for the extension.

What this article does not state

Interest rates are not given here. Check the current notified rate with the post office or bank before depositing. Tax treatment of the deposits or the interest is also not covered; if it matters to your return, confirm the position under the Income-tax Act, 1961 for earlier years or the Income-tax Act, 2025 from tax year 2026-27, with the section text in front of you.

What to do now

• Before opening an SSY account, count the girl children already holding SSY accounts in the family, and confirm the child is under ten on the date of opening (paras 3(1) and 3(4), Sukanya Samriddhi Account Scheme 2019).
• Plan SSY deposits to reach at least ₹250 every financial year, within the ₹1,50,000 ceiling, for fifteen years; a missed year costs ₹50 plus the minimum deposit to regularise (para 4(4)).
• For SCSS, fix the deposit in one go within ₹30 lakh (para 4(1), Senior Citizens' Savings Scheme 2019), and diarise the fifth anniversary; an extension application in Form-4 must be made within one year from maturity (para 8(1)).
• For an SSY marriage closure, apply no earlier than one month before the intended marriage and no later than three months after it (para 9(2) proviso, Sukanya Samriddhi Account Scheme 2019).

Have a CA review your facts before you act or file.

FAQ

When does an SSY account mature?
On completion of twenty-one years from the date of opening. (paras 2(1) and 9(1), Sukanya Samriddhi Account Scheme 2019)

How much can be deposited in SSY each year?
Up to ₹1,50,000 in a financial year, with at least ₹250 a year, for fifteen years from opening. (para 4(1) to 4(3))

Can a family open SSY for three daughters?
The base rule is a maximum of two girl children in one family. Twins or triplets in the first or second order of birth can allow more, on an affidavit and birth certificates, with a further proviso that limits the relaxation. (para 3(4) and provisos)

Can SSY be closed early for marriage?
Yes, on application with a notarised declaration on non-judicial stamp paper and proof that the holder will be at least eighteen on the wedding date, not earlier than one month before the intended marriage and not later than three months after the marriage. (para 9(2) and proviso)

How much can be deposited in SCSS?
A minimum of ₹1,000 in multiples of ₹1,000, up to ₹30 lakh, as a single deposit; retirement-benefit accounts are limited to the retirement benefits received or ₹30 lakh, whichever is lower. (paras 4(1) and 4(2), Senior Citizens' Savings Scheme 2019)

Is the SCSS limit still ₹15 lakh?
No. The scheme text records the substitution of "thirty lakh" for "fifteen lakhs" vide G.S.R. 240(E) dated 31 March 2023. (paras 3(7) and 4(1))

Can both spouses hold SCSS accounts up to the ceiling?
Yes, where each is individually eligible: the ceiling of ₹30 lakh applies in each account. (para 3(7))

What is the SCSS lock-in?
Five years from opening, extendable once by three years on Form-4 within one year from maturity; payout on Form-3. (paras 7(1) and 8)

General information only, from the scheme texts as published by the National Savings Institute. Confirm the current interest rate and forms with the post office or bank before depositing.

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