How this instrument works
Sukanya Samriddhi Yojana is a government-backed savings account that can only be opened for a girl child, and only before she turns ten, by a parent or legal guardian. A household may hold at most two such accounts, one exception being twin or triplet girls in a second delivery. That restriction is the scheme's whole point: it exists to build a dedicated fund for one daughter's higher education or wedding costs, not as a general-purpose savings vehicle the way a Public Provident Fund account is, which any resident of any age can open for any reason.
Deposits are allowed for 15 years from the date the account is opened, up to ₹150,000 in a financial year, and Years of deposits (max 15) in this sheet refers only to that funding window — not to how long the account stays open. The account itself does not mature until the girl turns 21, or earlier if she marries after turning 18, so a real SSY account keeps earning interest on its balance, untouched, for however many years sit between the last deposit and that eventual close. This instrument compounds the deposits it is given and stops there; it does not project the further growth that happens after year 15.
The formula treats the annual amount as though it arrived in twelve equal monthly instalments compounding at a matching monthly rate, which is a smoothing approximation rather than the scheme's exact bookkeeping. In practice a saver often deposits a lump sum early in the financial year, and the government credits interest once annually based on the lowest balance held between the 5th and last day of each month. The monthly-equivalent model here tracks close to that outcome for a saver who spreads contributions evenly, and it is the same shape of formula used for any recurring deposit that compounds monthly rather than once a year.
- Enter Annual deposit, ₹ — up to ₹150,000 a year is the scheme's ceiling, a cap shared with PPF under the same combined Section 80C limit.
- Set SSY annual interest rate, % to the government's current declared rate — 8.2% is in force as of this writing and is revised every quarter.
- Set Years of deposits (max 15) to how many years deposits will actually be made; the scheme stops accepting deposits after year 15 regardless of the account's age.
- Read Value after deposit period, ₹ for the compounded total the moment the deposit window closes — this is not the account's eventual full maturity figure.
Worked example — ₹1.5 lakh a year for 15 years
Set Annual deposit, ₹ to 150,000, the yearly ceiling, SSY annual interest rate, % to 8.2, the rate the government has declared for the current quarter, and Years of deposits (max 15) to 15, the full funding window a fresh account allows. Value after deposit period, ₹ comes out to ₹44,33,038.45 — fifteen years of ₹1.5 lakh deposits, modeled as equal monthly instalments compounding at a monthly-equivalent rate, closing out the deposit period just short of ₹44.4 lakh.
Halve the deposit to ₹75,000 over the same 15 years and the answer exactly halves too, to ₹22,16,519.22 — the formula is linear in deposit size for a fixed rate and term, a quick way to sanity-check any figure this sheet returns. What it will not show is what happens next: an account opened for a daughter under ten stays open, earning interest on this undisturbed balance, until she turns 21 or marries after 18, so the amount she eventually receives is this deposit-period figure plus however many further years of compounding follow before the account actually closes.
Questions
Why does the deposit window stop at 15 years when the account runs longer?
Because the scheme only requires and allows funding for the first 15 years from opening, while the account itself stays open until the girl turns 21, or until she marries after turning 18, whichever comes first. Years of deposits (max 15) covers only the funding stretch; the balance keeps earning interest, untouched, for whatever years remain until that later close, which this sheet does not project.
Who is actually allowed to open a Sukanya Samriddhi Yojana account?
A parent or legal guardian, on behalf of a girl child — biological or legally adopted — who has not yet turned ten. A family may hold at most two such accounts across its daughters, with an exception allowing a third if the second delivery produced twin or triplet girls. There is no equivalent age or gender restriction on a PPF account, which any resident can open regardless of who it is for.
Why is SSY annual interest rate, % usually higher than PPF's?
Because the government deliberately prices SSY as one of its highest-yielding small savings instruments, above PPF and above post office time deposits, to make saving for a daughter's education or wedding more attractive than the general-purpose alternatives. Both rates are reset quarterly by the Ministry of Finance, and the gap between them has typically run close to a full percentage point in recent years.
What happens if a required annual deposit is missed?
The account is marked irregular but not closed. Reviving it before the 15-year deposit window ends costs a flat penalty of ₹50 for each year missed, on top of depositing the shortfall up to the ₹250 yearly minimum for those years. Miss the window entirely and the account still earns interest, but no further deposits toward Annual deposit, ₹ can be made afterward.
Can this money be withdrawn before the account fully matures?
Partially. Once the girl turns 18, or has passed tenth grade, up to 50% of the account's balance at the end of the preceding financial year can be withdrawn for higher education costs. A full withdrawal is only available at marriage after she turns 18, or at maturity itself — Value after deposit period, ₹ is a compounding milestone, not a sum available on demand.
Why might a real account's balance differ from this figure?
This sheet spreads Annual deposit, ₹ across twelve equal monthly instalments compounding monthly, a smoothing approximation. A real saver more often deposits a lump sum early in the financial year, and the scheme compounds annually on the lowest balance held between the 5th and last day of each month, credited once on 31 March — so the timing of actual deposits, not just their yearly total, shifts the true balance slightly above or below what this sheet reports.
References
- National Savings Institute, Ministry of Finance — Small Savings Schemes
- India Post — Savings Schemes Administered Through Post Offices
Read this first: This instrument shows arithmetic, not advice. Real offers add fees, taxes and terms that vary by lender and place — verify the figures against your actual paperwork before deciding anything.