Sukanya Samriddhi Yojana Interest Rate

The Indian government has been taking constructive initiatives for developing the female sector of the country. From launching movements and campaigns to implementing powerful schemes as an uplifting measure, the government has not compromised in any domain. Modern existence demands ongoing monetary expenses for every purpose, be it educational or matrimonial. To meet the financial needs of every girl child, the government introduced a savings scheme that will help the girl child develop herself as she matures.

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The Sukanya Samriddhi Yojana scheme was introduced by the Prime Minister of India under the campaign "Beti Bachao Beti Padhao" on 22nd January 2015. This scheme entitles the Indian citizens to open a savings account on behalf of their girl child, which will have relatively higher interests than other deposit accounts. The money invested in this annual investment scheme can then further be used for the education or matrimonial purposes of the child.

Eligibility Criteria for SSY Scheme

This annual investment scheme is designed to serve as a helping hand to the parents having girl children. However, such a beneficial scheme has some criteria that need to be fulfilled to proceed with the process. There is a list of benchmarks that needs to be met to get the benefits of the scheme. 

  1. Who can avail of the offer?

    The girl child of a family is eligible for availing themselves of the scheme. However, the applicants must keep some age and residential restrictions in mind before submitting the paperwork. The restrictions regarding the girl child are:

    • The girl child who will be the beneficiary of the scheme must be a resident of India.
    • There is also an age restriction that states that the girl child must not exceed 10 years at the time of opening the account. The current age will be inclusive, which means if a girl is in her tenth year, she will be eligible to open the account.
  2. Guardians/Parents:

    The scheme allows parents or guardians to open an account on behalf of the girl child. However, they must present documents of lawful guardianship or be biological parents to claim the option of opening the account. The authorized bank will have the right to do a background check if any felony is suspected. This is the most crucial requirement needed from the guardians' side.

Features of Sukanya Samriddhi Yojana

Following are the key features of the SSY scheme:

  • The account matures after 21 years.
  • The investment period is, however, for the first 14 years of the scheme tenure.
  • Partial withdrawals not exceeding 50% of the total value are allowed on the girl attaining the age of 18 years with documents to support the cause.
  • Only one SSY account is allowed for each girl child.
  • Every family gets a maximum of 2 SSY accounts.
  • Interest Rates higher than most investing schemes.

Rate of Interest for Sukanya Samriddhi Yojana

Suppose the individuals have lawfully gratified the eligibility needs and understand the features of the scheme. In that case, the next step which will be essential for them is to have an inclusive insight into the scheme’s interest rates. The Sukanya Samriddhi Yojana interest rate is the feature that makes this scheme so attractive for Indian customers. The Indian government has set a bar between 7.6% and 9.5%, which is the most lucrative interest rate for a deposit scheme in the Indian market. 

The Sukanya Samriddhi Yojana interest rates are determined by the Indian government every quarter of a financial year based on earnings provided by the securities. The Sukanya Samriddhi interest rates are not applicable for any changes during a quarter after it has been officially set. The recent rates for the scheme are as follows:


SSY Interest Rates

1st April 2021 onwards


1st January – 31st March 2021


1st October – 31st December 2020


1st July – 30th September 2020


1st April – 30th June 2020


1st January – 31st March 2020


Sukanya Samriddhi Yojana Interest Rates are evaluated on the principal investment annually on a compounding basis. The compounding evaluation allows the investors to earn interest on interests already earned. This feature of these interest rates is lucrative to an already higher rate of interest.

For instance, an individual invests Rs. 10,000 the first year, then the Sukanya Samriddhi Yojana interest rate of 7.6% will be calculated on the investment, and the interest amount will be Rs. 760. Now the account holds an amount of Rs. 10,760. The individual deposits another set of Rs. 10,000 the second year, the interest rate will be calculated on the total amount, including the interest amount of the first year (i.e., Rs. 10,000 + Rs. 10,000 + Rs. 760).

Exceptions of Sukanya Samriddhi Yojana Interest Rate:

The government has guaranteed such beneficial interest rates acknowledging the financial conditions of every individual. However, in some situations when the Sukanya Samriddhi Interest Rate will not be payable to the investor. Such instances are:

  • The government has set a minimum annual investment of Rs. 250 and a maximum annual investment of Rs. 1.5 Lakh. The government has reduced the minimum annual amount from Rs. 1000 to Rs. 250 taking into consideration every individual’s financial needs and requirements.

If any individual fails to pay the bare minimum amount annually, then the account will get lapsed. In order to reactivate the account, the individual must pay a penalty charge of Rs. 50 along with the unpaid minimum amount. However, if the penalty charge is not paid, then the interest on the deposited amount will not be applicable.

In order to get the benefits of these interest rates, the individual must pay the penalty charge. If the penalty is not paid, the investment will earn an interest rate of the savings account, much lower than the Sukanya Samriddhi Yojana interest rate. If extra interest has been paid before as a default, the authorized banks will deduct such payments from the account.

  • Premature closure of an SSY account is permitted after 5 years of opening the account. Premature closure also requires the submission of certain documents to support the reason. If an individual closes the account during emergencies like medical situations or the death of the depositor, then the legal documents need to be presented.

However, if an individual closes an SSY account with no documents to support the emergency, then the Sukanya Samriddhi Yojana interest ratewill not be applicable to the further deposits. The reduced interest rate of the savings account will be applied to the investments.

Benefits/Advantages of Sukanya Samriddhi Yojana

The scheme tackles the central problem of the female sector, which includes the expenses for educational and matrimonial purposes. This scheme matures hand in hand with the girl child. This ensures that the invested amount will serve as a perfect means of huge expense towards the child's development. Every family worries about their children and wants to secure their future by helping financially. Since the female sector has been the victim of exploitation for a long time now, the sector needs some benefits in order for their empowerment. The SSY Scheme has been aiming at the very core of this issue. Some benefits which the scheme offers are as follows:

  1. High Rate of Interest

    As it is already mentioned earlier, the Sukanya Samriddhi Yojana interest rate is much higher than any regular or fixed deposit account. Since this is a long-term investment scheme, the money deposited is maximized at its fullest. The interest rates act as an attractive aspect of the scheme for most families who constantly worry about their girl child.

  2. Tax Benefits

    The triple tax benefits the scheme offers can be enticing to most individuals. The investments made in the SSY account are eligible for deduction from taxable income. Annual investments made up to the maximum limit that is Rs. 1.5 Lakh can be claimed to deductions under Section 80C of the Income Tax Act. 

    The scheme is also an EEE scheme. This means that not only the investment but also the amount earned is also tax-free. This allows the individuals to be free from tax liabilities with an open option of investing and creating a tax-free corpus for their girl child.

The Process to Purchase SSY

The applicants must submit the required documents in order to open a Sukanya Samriddhi Yojana Account. The government has authorized a board of banks that is eligible for opening an SSY account. The banks will provide the individuals with digital modes to get knowledge of the purchasing process. 

The first step in opening an SSY account is to choose a particular bank from the authorized banks' list and prepare the required documents beforehand. Preparation of the documents and paperwork is the most crucial step in the account opening process. 

Documents Required

The documents which will be essential in the process are:

  • SSY Form: The SSY form is readily available on the official portals of RBI (Reserve Bank of India) and all government-authorized banks.
  • Birth Certificate: The birth certificate of the girl child will be essential for age verification.
  • Passport Photo: A passport-sized photo is mandatory to be submitted with the required documents.
  • KYC: KYC Documents will be essential for residential and identity verification of the applicant who will open the SSY account. The KYC documents can include the following:
  • Aadhar Card
  • Passport
  • Voter ID Card

Sukanya Samriddhi Yojana Interest Rate Calculator

Before opening an account, an individual must know the extent to which they can maximize the money and whether the interest amount satisfies the future financial needs of the girl child. A user-friendly tool is available to get this knowledge, which will be handy for the applicants, and that is the Sukanya Samriddhi Yojana Interest Calculator. The calculator asks for some relevant details to evaluate theSukanya Samriddhi Yojana Interest Rate amount on the amount deposited annually. The details that the calculator asks for are:

  • Yearly Investment Amount
  • Age of the girl child
  • Starting Year


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