Beginner guide · 5-minute read
Sukanya Samriddhi, explained simply
Sukanya Samriddhi Yojana is a government savings account for a girl child. Parents put money in for 15 years, it earns one of the highest rates among small savings schemes, and the final amount is tax-free.
Checked on 14 Oct 2026 against the Ministry of Finance small savings rate notice for Oct–Dec 2026 and the Sukanya Samriddhi Account Scheme, 2019.
In one minute
- Who can open it
- A parent or guardian, for a girl under 10. Up to two daughters per family (more for twins or triplets).
- What it pays
- 8.2% a year (Oct–Dec 2026), reviewed every 3 months.
- How long
- Deposits for 15 years; the account matures 21 years after opening.
- How much
- ₹250 to ₹1,50,000 in each financial year.
How it works, with real numbers
Put in ₹1,50,000 every April for 15 years: ₹22,50,000 in total. The account keeps earning interest until it matures at 21 years.
At 8.2%, it would be worth about ₹71,82,119, and all of it is tax-free.
How the Sukanya Samriddhi rate has changed
Sukanya Samriddhi pays 8.2% today, unchanged since January 2024. Since it began in December 2014, it has ranged from 7.6% (2020–2023) to 9.2% (2015–2016).
- A new rate applies to your whole balance from the quarter it starts. So over the years you earn whatever the line shows, not just today's 8.2%.
See every rate change (12)
| Period | Rate a year |
|---|---|
| Jan 2024 – now | 8.2% |
| Apr 2023 – Dec 2023 | 8% |
| Apr 2020 – Mar 2023 | 7.6% |
| Jul 2019 – Mar 2020 | 8.4% |
| Oct 2018 – Jun 2019 | 8.5% |
| Jan 2018 – Sep 2018 | 8.1% |
| Jul 2017 – Dec 2017 | 8.3% |
| Apr 2017 – Jun 2017 | 8.4% |
| Oct 2016 – Mar 2017 | 8.5% |
| Apr 2016 – Sep 2016 | 8.6% |
| Apr 2015 – Mar 2016 | 9.2% |
| Dec 2014 – Mar 2015 | 9.1% |
Source: National Savings Institute, Ministry of Finance, rates since launch; Oct–Dec 2026 from the Ministry's latest notice.
Pros and cons
Good things
- Government-backed. As safe as it gets in India.
- One of the highest small-savings rates. 8.2% a year right now.
- Completely tax-free. No tax on the interest or the maturity amount.
- Tax deduction (old regime). Deposits count towards the ₹1.5 lakh deduction.
- Money set aside for her. It can only be used for her, mainly for education and marriage.
Things to watch
- Only for girls under 10. And at most two accounts per family in most cases.
- Long lock-in. Up to 50% can be taken out for her education once she turns 18; the rest waits for maturity.
- The rate can change. It's reviewed every 3 months.
- Shared deduction limit. The ₹1.5 lakh deduction is shared with PPF, ELSS and others.
- Late deposits earn less. Like PPF, money paid after the 5th earns nothing for that month.
Is it right for you?
Mistakes to avoid
- Depositing late in the year. Deposit by 5 April (or by the 5th each month) so every rupee earns interest.
- Missing the ₹250 minimum. The account becomes inactive; reviving it means paying the missed deposits and a ₹50 penalty for each year.
- Confusing it with insurance 'child plans'. Those are different products with different costs.
How to start
- Go to a post office or a bank that offers Sukanya Samriddhi.
- Take her birth certificate, and your ID, address proof, PAN and Aadhaar.
- Make the first deposit of ₹250 or more.
- Deposit by 5 April each year, or set up monthly payments by the 5th.
Words you'll see
- Guardian
- The parent or legal guardian who runs the account until she turns 18.
- Maturity
- 21 years after the account is opened.
- Partial withdrawal
- Taking out up to 50% for her education after she turns 18.
- Financial year
- 1 April to 31 March.
This guide explains how things work. It is not advice on what you should invest in. NetReturns is not SEBI-registered.