Who should open SSY, and when
SSY is narrow on purpose. It exists for parents of a daughter aged 0 to 10 who want a low-effort, government-backed, tax-free corpus for her higher education or wedding. If that's you, the case is strong. If it isn't, this isn't the product for you — open a PPF or pick up an equity SIP instead.
Open the account early
Every year you delay shortens the contribution window (deposits run for 15 years from opening) and pushes maturity later in your daughter's life. Open at age 1, deposits end at 16, maturity hits at 22. Open at age 8, deposits end at 23, maturity hits at 29 — past the point most families need the money for education or wedding. The compounding math punishes lateness; the rule book punishes it twice.
Best fit
- You're a parent looking for a set-and-forget tax-free corpus for your daughter's education or marriage.
- You have an Old Regime tax exposure and want the 80C deduction. (New Regime users still benefit from the 8.2% tax-free interest — just no 80C.)
- You're comfortable locking funds for 15–21 years and don't need this money sooner.
Not ideal if
- You might need the money before your daughter turns 18. Partial withdrawal only opens after age 18 (or 10th standard), is capped at 50% of the prior year's balance, and only for higher education or marriage. Anything else, you wait until year 21.
- You want equity-style returns. SSY caps your upside at the government rate — currently 8.2%, historically 7.6%–9.2%.
- The girl child is an NRI, or may become one. NRIs can't open SSY and existing accounts must close if the holder becomes an NRI.
The long-horizon caution nobody mentions
21 years is a long time. The 8.2% you see today (Apr–Jun 2026) is reset quarterly by the Ministry of Finance. Historically the rate has tracked PPF + 0.5–1%, but there is no statutory guarantee that gap continues. If the differential collapses, SSY loses its main advantage over PPF.
You're also locked into contributing for 15 years — minimum ₹250 a year, maximum ₹1.5 Lakh. Miss a year and the account goes "irregular": revive it by paying ₹50 penalty per defaulted year plus the ₹250 shortfall. It's not catastrophic, but it's friction you didn't sign up for.
How SSY maturity is calculated
SSY compounds annually. You deposit for the first 15 years; the balance keeps earning the prevailing rate for 6 more until year 21. The calculator above uses the FV-of-annuity-due formula at a flat rate — useful for planning, but actual returns will shift with quarterly resets.
The SSY Formula
- M — Maturity amount at year 21
- P — Annual deposit (made only for the first 15 years)
- r — Annual interest rate (currently 8.2%)
- n — Tenure in years (21 from account opening)
The calculator above applies the standard FV-of-annuity-due formula across the full 21 years. In practice, after year 15 you stop depositing while interest continues compounding for the remaining 6 years of the lock period.
What ₹1.5L/year looks like at 8.2%
Max contribution (₹1.5 Lakh per year) for 15 years, then 6 years of lock at a flat 8.2%: maturity lands near ₹69.27 Lakh. You put in ₹22.5 Lakh of your own money; the other ~₹46 Lakh is tax-free interest. Drop the contribution to ₹50,000/year and the maturity is roughly ₹23 Lakh.
Eligibility, in plain terms
- Only a parent or legal guardian can open the account, and only in the name of a girl child below age 10.
- One account per girl child. Two girls = two accounts max. Three is allowed only for verified twins/triplets with a medical certificate.
- Both parents cannot open separate accounts for the same girl. One girl, one account, full stop.
- NRIs can't open SSY. If the holder becomes an NRI later, the account must be closed.
- Open at any Post Office or authorised bank branch with the girl's birth certificate, guardian KYC, and ₹250 minimum to start.
Contribution rules
- Min ₹250/year. Max ₹1.5 Lakh per financial year (combined across all SSY accounts in the family).
- Deposits required for the first 15 years from opening. After that, no more contributions — the balance compounds for 6 years until year 21.
- Miss a year and the account becomes "irregular". Revive by paying ₹250 + a ₹50 penalty per defaulted year.
- Deposit before 5 April each year to earn interest for the full financial year. Deposits made later only earn from the calendar month they're credited.
Withdrawal — what you can and can't take out
- Before age 18: nothing. The account is locked.
- After age 18 (or 10th standard, whichever is earlier): up to 50% of the prior year's balance, for higher education only, with proof of admission.
- For marriage: full closure allowed if the girl is 18+ and within 1 month before or 3 months after the wedding.
- At year 21: account auto-matures. Full corpus paid out tax-free, to the girl child (now an adult).
- Compassionate closure: allowed on death of the holder or documented life-threatening illness. Otherwise: no.
SSY vs PPF for your daughter
- Rate: SSY 8.2% vs PPF 7.1% (both for Apr–Jun 2026). SSY is currently ~1.1% higher.
- Eligibility: SSY is girl-child only, under 10. PPF is open to anyone.
- Lock: SSY 21 years, no shortening. PPF 15 years, extendable in 5-year blocks; partial withdrawal from year 7.
- Tax: Both EEE. Both qualify under 80C (Old Regime).
- Practical take: if your daughter is under 10 and you can spare ₹1.5L/year, SSY first. If you have more to deploy after that — or your daughter is over 10 — PPF in your own name.
Frequently Asked Questions
What's the minimum and maximum I can deposit per year?
₹250 minimum, ₹1.5 Lakh maximum per financial year. The ceiling is combined across all SSY accounts in the family — if you have two daughters, ₹1.5L is the total, not per account. Deposits run for the first 15 years from opening; after that the balance compounds on its own until year 21.
What if I miss a year?
The account becomes "irregular" and stops earning interest on top of the new deposits until you revive it. To revive: pay the ₹250 minimum for each missed year plus a ₹50 penalty per missed year. Cheap enough to fix, annoying enough to avoid. Set a calendar reminder for early April.
When can I withdraw before maturity?
Not until your daughter turns 18 (or completes 10th standard, whichever is earlier), and even then only up to 50% of the previous year's closing balance — strictly for higher-education expenses with proof of admission. Full closure is allowed at 18+ if she's getting married. Anything else, you wait until year 21.
SSY vs PPF for a daughter — which is better?
If your daughter is under 10 and you have ₹1.5L/year to spare, SSY first — it's currently 8.2% vs PPF's 7.1% (both for Apr–Jun 2026), both tax-free, and SSY's earmarking removes the temptation to dip in. PPF makes sense as the second account once you've maxed SSY, or as the primary if your daughter is over 10. Both qualify under 80C (Old Regime).
Can both parents open separate accounts for the same daughter?
No. One account per girl child, opened by either parent or the legal guardian. Two daughters means two accounts max; three is allowed only for documented twins/triplets. The total deposit ceiling stays at ₹1.5L per year across the whole family.
What's the current SSY rate, and how often does it change?
8.2% for Apr–Jun 2026. The Ministry of Finance resets the rate every quarter. Historical range over the last decade: 7.6% to 9.2%. Your maturity will reflect whatever the rate is each quarter over 21 years, not the rate on the day you opened the account.
Does this calculator save my data?
No. Everything runs in your browser.