Deposits run for 15 years, the account matures at 21 years, and the balance keeps compounding at 8.2% through the six silent years in between. Contribution, interest and maturity are all exempt.
The highest guaranteed rate among small savings schemes, and fully tax-free at every stage.
You deposit for 15 years from the date the account is opened. The account then stays open until 21 years from opening, and the balance keeps earning the declared rate for those last six years without any further deposit. That tail is where a large part of the final corpus is built — which is why opening the account early matters far more than depositing the maximum.
8.2% is the rate for the July–September 2026 quarter. Small savings rates are reviewed every quarter, so the actual return over a 21-year account will be a blend of many rates. This calculator assumes today’s rate throughout, which is the standard convention but is unlikely to be exactly what happens.
The deduction sits in Section 123 read with Schedule XV (the old 80C), capped at ₹1.5 lakh across all eligible investments and available in the old regime only. The interest and maturity exemption is in Schedule II of the Income-tax Act 2025. In the new regime you still get the tax-free interest and maturity — you simply do not get the deduction on the way in.
Partial withdrawal of up to 50% of the previous year’s closing balance is allowed once the girl turns 18 or passes class 10, whichever is earlier — intended for higher education. Premature closure is permitted on marriage after 18, or on specified compassionate grounds.
The calculator does the arithmetic. TaxSphere — our free case-law library, 1,184 authorities and the Act in full — has the judgments, the circulars and the statutory text for the same provision.
