SSY vs PPF: which is better?

SSY gives higher interest (8.2% vs 7.1%) but is only for girl children and locks money for 21 years. PPF is more flexible with 15-year tenure.

Can I close SSY early?

Premature closure allowed after 5 years in case of medical emergency or death of guardian. After girl turns 18, partial withdrawal (50%) is allowed for higher education.

Sukanya Samriddhi Yojana — Complete Guide

SSY is a government savings scheme for the girl child offering one of the highest interest rates among fixed-income instruments with EEE tax benefits.

Key Features

Current interest rate: 8.2% (Q1 2025). Minimum deposit: ₹250/year. Maximum: ₹1.5L/year. Account matures after 21 years from opening. Partial withdrawal at 18 for education.

Tax Benefits

Triple exempt (EEE): Deposit qualifies for 80C deduction, interest earned is tax-free, and maturity amount is tax-free. One of the few truly tax-free investments.

Eligibility

Girl child below 10 years. Maximum 2 accounts (one per girl child). Parents/guardians can open the account at any post office or authorized bank.