Formula used
SSY compounds annually. Deposits are made at the beginning of each year from the girl's current age until she turns 15 (15 − current age deposit years). The accumulated corpus at age 15 then grows at the SSY rate with no additional deposits until maturity at 21. The formula: future value of deposits at year 15 × (1 + r)^(21−15). Tax saving per year = deposit × 31.2% (30% + 4% cess).
Example calculation
Girl age 5, Rs 50,000/year deposit at 8.2% for 10 years, then 6 years of compounding to maturity at age 21: total deposit = Rs 5,00,000; estimated maturity = approximately Rs 15,26,000; total interest = Rs 10,26,000. Annual 80C tax saving (30% bracket) = Rs 15,600.
How to use this calculator
- Enter the girl child's current age (must be below 10 to open an SSY account).
- Enter the amount you plan to deposit each year (Rs 250 to Rs 1,50,000 maximum).
- Keep the SSY interest rate at the current rate (8.2%) or update it if revised.
- Read the estimated maturity amount, total deposit, interest earned and annual 80C tax saving.
Important assumptions
- Annual deposits are made at the start of each year from the current age until age 15.
- The SSY interest rate is assumed constant — in reality it is revised quarterly.
- Interest compounds annually as per SSY scheme rules.
- 80C tax saving is shown at 31.2% (30% tax + 4% cess) for illustration only.
- Educational estimate only. Open SSY at a post office or authorised bank and verify the current rate.
Common mistakes to avoid
- Opening SSY after the girl turns 10 — accounts can only be opened before age 10.
- Depositing more than Rs 1,50,000 per year — the excess earns no interest and gets no tax benefit.
- Confusing SSY with PPF — SSY is only for girl children and has a fixed 21-year term, not 15-year.
- Withdrawing before 18 — SSY does not permit withdrawal until the girl is 18 (except for account closure on guardian's death or serious illness).
Why SSY is one of India's best savings schemes for daughters
SSY offers the highest interest rate among government small-savings schemes, full EEE tax status, and is specifically designed for a daughter's future — education, wedding or financial independence. Unlike PPF which is open-ended, SSY has a defined purpose and term, making it a disciplined vehicle for long-term child goal planning.
- Rate: 8.2% (Q1 FY 2025-26), revised quarterly — consistently higher than PPF.
- Tax: EEE — deposit deductible under 80C, interest tax-free, maturity tax-free.
- Term: Matures at age 21 (or on marriage after 18).
- Deposit: Rs 250 minimum, Rs 1.5L maximum per year.
SSY vs PPF — which should you choose?
Choose SSY if you have a girl child below 10 and want a dedicated, higher-rate vehicle for her goals. Choose PPF for general long-term savings open to everyone. You can do both — use SSY for the daughter's corpus and PPF for your own retirement savings. Both qualify for the Rs 1.5L 80C deduction.
- SSY: 8.2% rate, purpose-specific, deposits until age 15, maturity at 21.
- PPF: 7.1% rate, general savings, 15-year term (extendable), open to all.
- Both: EEE status, Rs 1.5L annual cap.
Source and Methodology
Deposits are modelled as end-of-year payments for the years from the girl's current age to age 15. The accumulated corpus at age 15 grows at the entered rate to age 21 with no further deposits. This matches the SSY scheme mechanics. The 80C tax saving illustrates the benefit at 30% slab + 4% cess.
Related calculators and guides
You can cross-check this estimate using: salary in-hand calculator, Old vs New Tax Regime Calculator, 80C deduction calculator, EMI calculator, ITR-2 filing guide, emergency fund guide.
When this tool is useful
- When you want a fast estimate before making a financial or salary decision.
- When you want to compare different assumptions in seconds.
- When you want to understand the formula behind the result.