Sukanya Samriddhi Account Maturity Age to be Determined by Investment Start Date

Understanding Sukanya Samriddhi Account (SSA) Maturity Rules

The maturity of a Sukanya Samriddhi Account (SSA) does not depend on the age of the girl child, but rather on the date of investment. This often confuses parents who open the account later, especially when the child is already 8, 9, or 10 years old.

Adhil Shetty, CEO of Bank Bazaar, explains that the maturity of an SSA is linked to the date of opening, not the child's age. This means that if an SSA is opened when the girl is 10 years old, it will mature 21 years later, effectively when she turns 31, even though contributions are required only for the first 15 years.

When an SSA is opened at a later age, deposits can be made until the child turns 25. However, this does not mean the account matures at 25 or later. The account will still mature at 21, but contributions beyond that age are not required, and in fact, deposits stop earlier as per the 15-year rule.

Another important point to note is that even after the contribution period ends, the account continues to earn interest until maturity. This means the accumulated amount continues to grow over time, helping build a sizeable corpus by the time the girl turns 31.

For instance, if an SSA is opened when the girl is 10 years old in 2026, and Rs 1.5 lakh is invested every year, the total contribution over 15 years comes to Rs 22.5 lakh. The scheme allows deposits only for 15 years, but the account continues to earn interest until the girl turns 31 (girl's age 10 years + 21 years SSA maturity period). In this case, the maturity year will be 2047, when she completes 31 years of age. During this full period, the invested money earns compound interest, which adds up to about Rs 49.32 lakh. So, at maturity, the total amount is Rs 71.82 lakh, including the invested amount and the interest earned over time.

Limited Liquidity and Tax Benefits

The scheme, however, provides limited liquidity at a critical stage. Once the girl turns 18, up to 50 percent of the previous year's balance can be withdrawn, primarily for higher education expenses such as tuition or admission fees and marriage. For instance, if the balance is Rs 10 lakh at that point, up to Rs 5 lakh can be accessed, while the remaining corpus continues to compound.

SSA also provides significant tax advantages under Section 80C, allowing parents or legal guardians to claim a deduction of up to Rs 1.5 lakh annually on deposits made into the account, but only under the old tax regime. This deduction reduces your taxable income directly, helping families save on taxes while securing the girl child's future; the scheme's EEE status further exempts the interest earned (compounded monthly at the current rate of 8.2 percent p.a.) and maturity amount from taxation upon fulfilment of tenure conditions.

| Investment Option | Total Contribution | Maturity Amount | | --- | --- | --- | | SSA opened at 10 years old in 2026 | Rs 22.5 lakh | Rs 71.82 lakh | | | | (including interest earned) |

To leverage these benefits, open an SSY account at a post office or authorised bank for a girl child under 10 years, depositing a minimum of Rs 250 and up to Rs 1.5 lakh yearly until the child turns 15, with the account maturing after 21 years. The entire corpus becomes accessible at maturity - all tax-free, making it a powerful, low-risk option for long-term savings aligned with 80C limits alongside other investments like ELSS or PPF.