SSY Calculation: Depositing ₹1 lakh will yield approximately ₹48 lakh for your daughter; check the calculation..
The government's 'Sukanya Samriddhi Yojana' can be an excellent option for securing a daughter's financial future. Through this scheme, parents can build a substantial fund for their daughter's education and marriage by making small, regular savings. A key feature is that the investment period is 15 years, while the account matures after 21 years—meaning that even after contributions cease, the balance in the account continues to earn interest.
If you invest ₹1 lakh annually in this scheme, a fund of approximately ₹47.88 lakh can be accumulated by the time of maturity. Let’s examine how much capital will be accumulated and how much interest will be earned through an annual investment of ₹1 lakh.
What is the current interest rate?
For the October–December 2024 quarter, the Sukanya Samriddhi Yojana offers an annual interest rate of 8.2%. Interest in this scheme is compounded annually. The government reviews the interest rates for small savings schemes every quarter; therefore, the final maturity amount may change if interest rates are adjusted in the future.
Full Calculation
Annual Investment: ₹1 lakh
Total Investment: ₹15 lakh
Interest Rate (assumed): 8.2%
Estimated Maturity Amount after 21 years: ₹47,88,079
Total Investment: ₹15,00,000
Total Interest: ₹32,88,079
This calculation assumes that ₹1 lakh is deposited at the beginning of each financial year and that the interest rate remains at 8.2% throughout the entire duration.
Understanding the Math
In the first year, a deposit of ₹1 lakh earns 8.2% interest, amounting to ₹8,200. By the end of the year, the balance becomes ₹1,08,200.
In the second year, an additional ₹1 lakh is deposited. Now, interest will be earned on Rs 2,08,200, amounting to Rs 17,072.
Depositing Rs 1 lakh in the third year will further increase the interest amount.
Continuing this investment for 15 years will bring the total deposited amount to Rs 15 lakh.
Thus, upon the completion of 21 years, you could receive approximately Rs 47.88 lakh—meaning you would earn about Rs 32.88 lakh in interest over and above your total deposits.
Partial withdrawals for a daughter's education
Under the Sukanya Samriddhi Yojana, once the daughter reaches the age of 18 or passes the 10th grade—whichever occurs first—up to 50% of the balance available in the account at the end of the preceding financial year can be withdrawn for educational purposes. This can help in covering the expenses for higher education.
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