Moment guide · FY 2026-27

I am investing in Sukanya Samriddhi Yojana

What are the rules for Sukanya Samriddhi Yojana tax benefits?

Sukanya Samriddhi Yojana is opened for a girl child under 10, with contributions from ₹250 to ₹1.5 lakh a year. It matures 21 years from the date of account opening — not from birth — and allows a partial withdrawal of up to 50% at 18 for education or marriage. Contributions are 80C-deductible and the interest and maturity are fully exempt, making it a true EEE vehicle.

The #1 trap

Mistiming the maturity — the account matures 21 years from the date of OPENING, not from the child's birth, so opening it late pushes maturity past the child's 21st birthday. Also, the partial withdrawal at 18 is limited to 50% of the balance and only for education or marriage, and the 80C deduction works only in the old regime.

Rahul, father of a two-year-old daughter

Rahul opens a Sukanya Samriddhi Yojana account for his daughter Ananya when she is two years old, in 2025. He contributes ₹1,50,000 a year, the maximum, and claims the full amount under section 80C in the old regime, within the ₹1.5L ceiling that also covers his EPF and ELSS. The account earns interest at 8.2% for FY 2025-26, and both the interest credited each year and the maturity value are fully exempt under section 10(11) — SSY is EEE, exempt at every stage. The account matures 21 years from the date of opening, so Ananya's account matures in 2046, when she is 23, not when she turns 21 — if Rahul had opened the account when she was eight, maturity would fall at 29. When Ananya turns 18 in 2041, the scheme allows a partial withdrawal of up to 50% of the balance, and Rahul plans to use it for her higher education, because the withdrawal is permitted specifically for education or marriage. If Rahul were in the new regime, the 80C deduction for the SSY contribution would not be available, although the interest and maturity would still be tax-free. A colleague who opened the account at the child's age of nine gets a shorter accumulation window, which is why the recommendation is to open the account as early as possible after birth. Rahul keeps the SSY passbook and the contribution receipts for the 80C claim each year. A quick call with us dials in the final figure. Rahul also confirms that the SSY account is opened at a post office or an authorised bank branch, and the account can be transferred between banks if the family moves. The contribution can be made in lump sums or monthly instalments as long as the yearly total stays within the ₹1.5 lakh cap, and a missed year is allowed, though the account requires a minimum deposit in the year of opening and the fifteen years following. The interest rate is notified quarterly by the government, so the 8.2% figure for FY 2025-26 changes with the notifications, and the interest is credited annually on the 31 March balance. If the girl marries before the maturity, the account closes at the marriage, and the premature closure forfeits part of the interest. A quick call with us dials in the final figure.