Sukanya Samriddhi Yojana pays 8.2% a year for the July to September 2026 quarter. The interest is fully tax free. No other government-backed scheme pays an Indian household more. For a parent in the 30% bracket, nothing else comes close after tax. The account is for a girl child. It runs 21 years from opening. You can put in ₹250 to ₹1,50,000 a year. The catch is not the return. It is that the rate is reset every quarter, so 8.2% is today’s rate, not a 21-year promise.
What are the rules of the Sukanya Samriddhi account?
| Rule | Figure | Applies to |
|---|---|---|
| Interest rate | 8.2% a year | July–September 2026 quarter, reset quarterly |
| Minimum deposit | ₹250 a year | Keeping the account active |
| Maximum deposit | ₹1,50,000 a year | Across all accounts for the child |
| Tenure | 21 years from opening | Maturity of the account |
| Age at opening | Girl child under 10 | Eligibility |
| Taxation | EEE — fully tax free | Contribution, interest and maturity |
| Section 80C | Within the ₹1,50,000 limit | Old tax regime only |
Rates come from the Ministry of Finance quarterly notification. It is dated 1 July 2026, for the July to September quarter. Other scheme terms are as held in our small savings data on the same date.
Why is 8.2% not a guaranteed 8.2% for 21 years?
Because the Ministry of Finance resets small savings rates every quarter. Your balance earns whatever the notified rate is at the time. There is no lock-in on the rate, only on your money.
This is the single most misrepresented fact about the scheme. Some calculators project a maturity value at a flat 8.2% for two decades. That is an assumption, not an outcome. Ours does the same sum, and the same warning applies. Use our SSY calculator to see the shape, not the answer.
Rates have held steady for several consecutive quarters, which is useful context and not a forecast. Run your own numbers at a lower rate too, and plan on the lower one.
How does SSY compare with the other small savings schemes?
| Scheme | Rate | Tenure | Taxation |
|---|---|---|---|
| Sukanya Samriddhi Yojana | 8.2% | 21 years from opening | EEE — fully tax free |
| Senior Citizen Savings Scheme | 8.2% | 5 years, extendable by 3 | Interest fully taxable |
| National Savings Certificate | 7.7% | 5 years | Interest taxable |
| Kisan Vikas Patra | 7.5% | About 115 months | Interest fully taxable |
| Post Office Monthly Income Scheme | 7.4% | 5 years | Interest fully taxable |
| Public Provident Fund | 7.1% | 15 years, extendable | EEE — fully tax free |
All figures as notified for July to September 2026. Read this table on tax, not on rate. SCSS matches SSY at 8.2%. But its interest is fully taxable, so a 30% bracket investor keeps far less. Only SSY and PPF are tax free at every stage.
Against a bank deposit the gap is wider still. Our fixed deposit rates of 15 August 2026 put the best small finance bank deposits at 8.00%. That is taxed at slab. A tax-free 8.2% beats a taxed 8.00% by a long way.
Who should not open this account?
Anyone who might need the money before the child is grown. This is a 21-year commitment tied to one child, with limited access in between. Money you may need for a house, a business or a medical event does not belong here.
It also should not be your only long-term plan. A single fixed-income product, however good, will not fund an education twenty years from now on its own. Pair it with equity for the same goal and size both against the actual cost.
One more honest point. The 80C deduction is available under the old tax regime only. If you have opted for the new regime, you get no deduction on the deposit. The interest and the maturity stay tax free, so the scheme still works. The break on the way in simply does not exist for you. Our old versus new regime calculator shows which side you are on.
How do you open a Sukanya Samriddhi account?
At a post office or an authorised bank branch. The guardian opens it in the girl’s name. Scheme rules allow one account per girl child.
Carry the child’s birth certificate, and the guardian’s identity and address proof. Deposit at least ₹250 to start. Keep the passbook and set a yearly reminder. An account that misses the minimum deposit falls into default. Reviving it costs a penalty.
Partial withdrawal for higher education and closure on marriage after 18 are provided for in the scheme rules. The exact conditions sit in the notified rules at the post office. Ask for them in writing. Do not rely on a summary, including ours.
Frequently asked questions
Can I open a Sukanya Samriddhi account for two daughters?
The scheme allows an account for a girl child under 10. The ₹1,50,000 yearly limit applies across accounts for that child. Rules on accounts per family sit in the notified scheme rules. Ask the post office to show you those rules before opening a second account. Twins are a special case.
What happens if I miss a year’s deposit?
The account falls into default. To revive it you pay the minimum deposit for each missed year, plus a penalty. The balance keeps earning interest meanwhile. The simplest defence is a standing instruction for ₹250 each April. Top it up later if you can.
Is Sukanya Samriddhi better than a SIP in mutual funds?
They do different jobs. SSY gives a guaranteed, tax-free, government-set return with no market risk and a hard lock-in. Equity carries risk and no guarantee, and historically has produced higher long-run returns. For a goal 15 years away, most planners use both rather than choosing.
Is the interest on SSY really tax free?
Yes. The scheme has exempt-exempt-exempt treatment, so the deposit, the interest and the maturity amount are all tax free. That is what makes 8.2% unusually strong. A taxed return would have to be much higher to match it.
Can the account be transferred if we move city?
Yes, small savings accounts can be transferred between post offices and authorised banks. Carry the passbook and the guardian’s identity proof to the existing branch and ask for the transfer form. Do it before you move, since it is harder to chase from another state.
Sources
- Ministry of Finance quarterly notification of small savings rates, July–September 2026 (Q2 FY 2026-27), as of 1 July 2026. Confidence: verified.
- Deduction limits under Section 80C, as tracked in our tax data, as of 17 August 2026.
- Credsir fixed deposit rate table, as of 15 August 2026.
- Our methodology and editorial policy.
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