Guide · India · Sukanya Samriddhi
SSY: two timelines on one passbook
Parents often hear “15 years” and picture maturity — but SSY’s design separates when you stop depositing from when the account closes. The gap is where a lot of quiet compounding happens.
See the two-phase curve: SSY calculator · PPF calculator for a different lock-in pattern
Disclaimer: Interest rates on small savings schemes are notified by the government and can change quarterly. Verify current rules on official portals.
Deposit phase (up to 15 years from opening)
Subject to annual caps and eligibility, guardians contribute for up to fifteen years from account opening. Those deposits earn interest under scheme rules and enjoy EEE-style tax treatment within the scheme’s framework.
Maturity phase (21 years from opening)
The account typically matures on completion of twenty-one years from the date of opening — not fifteen. After deposits end, the accumulated balance can continue to compound until maturity rules apply.
Why the “silent” years matter
Once fresh contributions stop, the existing corpus keeps working. For long horizons, that tail of compounding can be a large share of terminal wealth — which surprises people who only model the deposit years.
Planning takeaway
When you compare SSY to other instruments, align cashflow needs with the actual withdrawal rules at education/marriage milestones — not just the headline interest table.