Answers to the questions people ask most often about Sukanya Samriddhi Yojana.
Where can I open the account?
At any post office in India, or at an authorised bank. That includes the public sector banks and some private banks, such as ICICI Bank and Axis Bank.
Who can open an account?
The parents or legal guardian of a girl, in her name, any time from her birth until she turns 10. The age rule was relaxed for the first year. The scheme was notified on 02/12/2014, and girls who had turned ten in the year before that were also eligible. So an account could also be opened for a girl who turned 10 between 02/12/2013 and 02/12/2014.
A girl can have only one Sukanya Samriddhi Yojana account. Parents or guardians can open accounts for up to two girls. If twin or triplet girls are born at the first or second birth, they can open more than two accounts by giving an affidavit with the birth certificates.
How much can I invest?
You open the account with at least Rs.250. After that, the minimum is Rs.250 a year and the maximum is Rs.150000 a year, in multiples of Rs.50. You can deposit as many times as you like within the year.
How long does the scheme run?
You can keep depositing for 15 years from the date the account is opened. The account matures 21 years from the date it was opened.
What is the rate of return?
The government reviews it every quarter. For October to December 2026 it is 8.2%, compounded yearly. The yearly compounding, as much as the rate itself, is what builds a good corpus by maturity.
There is no monthly or yearly interest payout. The interest is added to the account at the end of each financial year, and it all stays invested for your daughter’s higher education or marriage.
Who operates the account?
The girl's parent or legal guardian. When she turns 18, she can operate the account herself by submitting the necessary documents.
Every transaction is recorded in a passbook from the post office or bank where the account is held.
How safe is it?
As safe as it gets. It is a Government of India scheme.
How is it taxed?
It is tax-free at every stage. What you deposit qualifies for a deduction under Sec 80C (if you use the old tax regime), the interest is tax-free, and the maturity amount is tax-free when you withdraw it. This is called EEE (exempt, exempt, exempt) treatment, the same as a PPF account.
The tax treatment wasn't clear when the scheme was launched. The tax-exempt status was announced in the budget of 28 February, 2015, and became law when Parliament passed that year's Finance Act.