What is Sukanya Samriddhi Account (SSA)?
Sukanya Samriddhi Account is a saving scheme established by Government of India.
The account offers high interest, tax exemptions, and helps build a substantial corpus for your daughter’s future.
History of SSA
Launched on January 22, 2015, by Prime Minister Narendra Modi, SSA is part of the Beti Bachao Beti Padhao initiative to promote the welfare of the girl child.
The Ministry of Finance introduced this scheme under the Small Savings Schemes, and the Sukanya Samriddhi Account Rules, 2016 govern its operation.
How Does the SSA Account Function?
A parent or guardian can open an account for a girl child below 10 years of age.
Deposit the amount (from 250 to 1.5 lakhs) every year for the first 15 years.
Account matures after 21 years from the date of opening or upon marriage of the girl after 18.
On maturity, the bank pays out the full amount along with interest tax-free.
Features of SSA
For girl children only
- Currently, it provides attractive interest rates that surpass those offered by most small savings schemes.
- Tax benefit: exempt at deposit, interest, and maturity
- Lock-in period ensures funds grow for long-term goals
- Partial withdrawal allowed for education
- Minimum deposit: 250/year, Maximum: 1.5 lakhs/year
Income Tax Benefits
- Contributions qualify for deduction under Section 80C (up to 1.5 lakhs/year)
- Interest earned is tax-free
- Maturity amount is fully tax-exempt
Who can open an SSA account?
Parent or legal guardian of a girl can open the account in the name of a girl child.
To be eligible, the age of the girl child must be less than 10 years at the time of account opening.
Furthermore, parents or guardians can open an SSA account for an adopted girl child as well.
How many accounts can you open?
One account per girl child
A maximum of two accounts for two daughters in a family
In such cases, especially with twins or triplets, the bank may allow more than two accounts if valid proof is provided.
Where can you open the SSA Account?
At any authorized Post Office
At authorized bank branches (SBI, HDFC, ICICI, PNB, Axis, etc.)
Some banks allow online SSA account opening and deposits
Documents Required
- Birth certificate of the girl child
- Identity proof of parent/guardian (Aadhaar, PAN, etc.)
- Address proof (Aadhaar, utility bills, etc.)
- Recent passport-size photograph
Deposit Limits
- Minimum: 250/year
- Maximum: 1.5 lakhs/year
- You can make deposits in a lump sum or in multiple installments, with no monthly or yearly limit.
Deposit Period
- You can make deposits for 15 years from the account opening date.
- Moreover, interest continues to accumulate on the account until it matures 21 years after opening.
How to Deposit?
To begin with, you can fund your SSA account using one of the following options.
- Cash
- Cheque
- Demand Draft (DD)
- Online transfer
Inactive Account
Consequently, the account becomes inactive if the account holder fails to deposit at least ₹250 per year.
To revive:
- Pay a penalty of 50/year of default
- Pay the missed deposit amount for each year
Interest Rate
- The Ministry of Finance revises the interest rate quarterly.
- As of Q1 FY 2025-26 (April–June), interest rate is 8.2% p.a. (example – always check current rate)
Compounding Frequency
- The bank compounds interest annually
- Calculated on the lowest balance between 10th and end of each month
Maturity Period
- Matures after 21 years from the date of opening
- Or on marriage of the girl child after turning 18 (proof required)
Partial Withdrawal
- Up to 50% of balance at the end of the preceding financial year
- Furthermore, partial withdrawal is allowed when the girl turns 18 or passes the 10th standard, whichever comes earlier.
- Purpose: education expenses (proof required)
Pre-mature Closure
Allowed only under these circumstances:
- Marriage of girl after turning 18
- Death of account holder
- Life-threatening illness of girl child
- On extreme hardship, with permission from authorities
Loan Facility
Loan facility is NOT available under SSA
Nomination
- Nomination facility is NOT available
- In the unfortunate event of the girl child’s death, the funds are accordingly paid to the guardian or legal heir.
Passbook
- A passbook is issued at the time of account opening
- It records all transactions and interest earned
Duplicate Passbook
- In case the passbook is lost or damaged, you can request a duplicate from the issuing bank or post office.
- Application and nominal fee (around 50) may be required
Account Transfer
- SSA can be transferred between banks and post offices
- Or between different branches
- While transfers are free of charge for relocation, a minimal fee may apply in other circumstances.
SSA for NRIs
- NRIs are NOT eligible to open an SSA account
- Even if a resident later becomes an NRI, the account can continue to remain active until maturity.
- However, after the status change, no fresh contributions are allowed to the account.
Final Thoughts
In fact, the Sukanya Samriddhi Account offers more than just investment benefits; it represents a promise for your daughter’s brighter future.
It offers unmatched returns, tax advantages, and peace of mind.
For parents of young girls, it’s one of the best tools to secure educational and marriage-related financial goals with government-guaranteed safety.