Sukanya Samriddhi Yojana Calculator

Sukanya Samriddhi Yojana Calculator

The Sukanya Samriddhi Yojana (SSY) Calculator is an indispensable tool that computes both the interest earned and the maturity amount for an SSY account. If you meet the eligibility criteria for an SSY account, this calculator allows you to accurately ascertain the maturity value of your investment. It features a formula box where you input the deposit amount, the age of the girl child (minimum 10 years or above), and the investment's starting year. Upon entering these details, the calculator instantly reveals the total interest and the maturity amount.

How Does Sukanya Samriddhi Yojana Work?

The Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme for the girl child, available from birth until she turns 10, at post offices and banks. The Sukanya Samriddhi Yojana account can be started with Rs 250, allowing a maximum yearly contribution of Rs 1.5 lakh for a girl child's future education or marriage expenses.

The Sukanya Samriddhi Yojana (SSY) account remains operative for 21 years from the date of its opening or until the girl child's marriage after she turns 18. Account holders can make partial withdrawals of up to 50% of the balance for the girl child's higher education expenses. Presently, the SSY account offers an interest rate of 7.6% per annum for the July to September quarter of the year 2021.

Contributions made to the SSY account qualify for a tax deduction of up to Rs 1.5 lakh annually under Section 80C of the Income Tax Act. Moreover, the interest accrued on these deposits, as well as the funds received upon maturity, are exempt from taxation.

Let us find out how Investkraft’s SSY calculator works with the help of a detailed example. We will also discuss the formula which is used to calculate the SSY maturity amount.

Sukanya Samriddhi Yojana Calculator Formula

A = P (1 + r/n) ^ nt

Where,

• A is compound interest,
• P is the principal amount,
• r is the rate of interest,
• n is the number of times the interest compounds in a year,
• t is the tenure in years.

If you put Rs 1,50,000 into your SSY account every year for 15 years, and it earns 7.6% interest annually, here's what you can expect after 21 years. In the first 15 years, your total deposits would sum up to Rs 42.48 lakh. Then, if you let your money sit in the SSY account for the remaining 6 years without adding any more funds, you'd have Rs 65.93 lakh waiting for you when it matures.

How to Use the SSY Calculator to Calculate the Maturity Amount for My Daughter?

Investkraft’s Sukanya Samriddhi Yojana (SSY) calculator is a very simple tool through which you can determine how much amount your daughter/s will have after she turns 18 or after 21 years of opening an SSY account on a given annual investment. Just follow the steps given below to use the calculator now:

1. Enter a yearly investment amount as per your comfort
2. Select your daughter’s current age
3. Enter the year when you wish to start investing in the SS Yojana
4. Click on the “Invest Now” button

What are the Benefits of Sukanya Samriddhi Yojana (SSY)?

Investing in the Sukanya Samriddhi Yojana (SSY) can bear many positive benefits in the longer run such as:

• Minimum Deposit is Low: The minimum deposit for maintaining an SSY account is Rs.250 annually, allowing deposits up to Rs.1.5 lakh. This makes it accessible to all societal sections. Missing a year's payment incurs a Rs.50 penalty but the account remains active.
• Higher Interest Rate: Currently enjoying an 8.2% compounded annual interest rate (as of Q3 FY 2023-24), this remains one of the highest among small savings schemes.
• Tax Benefits: Enjoy a full tax deduction on the principal invested, up to ₹1.5 lakh per annum, under Section 80C of the Income Tax Act. Both the interest earned and the maturity amounts are tax-exempt.
• Long Tenure: Secure your daughter's future with a plan that matures in 21 years or upon her marriage after reaching the age of 18, whichever comes first.
• Educational Expenses Covered: You are eligible to withdraw up to 50% of the account balance from the end of the previous financial year to cover the educational expenses of your daughter. To avail of this benefit, you must submit proof of her admission.
• Guaranteed Returns: As a government-backed scheme, SSY guarantees returns upon maturity.
• Convenient Transfer Facility: The SSY account can be transferred from any post office to a bank, or vice versa, across India.
• No More Deposits After 15 years: There is no requirement to make further deposits after the initial 15 years until the maturity of the deposit, which occurs 21 years from the account opening date. Interest will continue to be accrued on the deposit during this period.