- Under the SSY scheme, deposits are required to be kept for 15 years and interest continues to accrue for six years thereafter
- However, as the government changes interest rates from time to time, the actual amount received may vary
- Learn the equation of how
Sukanya Samriddhi: You don't need a huge amount of money to start saving for your daughter's future. If you can only invest ₹1,200 per month, you Under Sukanya Samriddhi Yojana (SSY) can gradually build a substantial fund. Thus, you will accumulate ₹14,400 annually. If you invest continuously for 15 years, you will accumulate a total of ₹216,000. After that, you will not need to make any new deposit till the end of 21 years, but the interest will continue to accrue.
This means that starting with a small amount can build up a substantial fund for your daughter in the long run. Considering an interest rate of 8.2% per annum, saving ₹1,200 per month can generate a fund of approximately ₹6.90 lakh, of which approximately ₹4.74 lakh will come from interest. Note that the government may change the SSY interest rate from time to time, so the actual amount may change.
Complete calculations for ₹1,200 per month
- If you deposit ₹1,200 per month:
- Monthly Investment: ₹1,200
- Annual Investment: ₹14,400
- Total investment over 15 years: ₹2,16,000
- Estimated Interest: Around ₹4,74,000
- Estimated funds after 21 years: Around ₹6,90,000
This estimate is based on monthly investment and a uniform interest rate of 8.2%.
Sukanya Samriddhi Yojana: Central government's new scheme to secure the future of girls! How much money will be received after 21 years?
Deposit is required for 15 years only
In SSY, you don't need to deposit money every month for 21 years. In this example, you will deposit ₹1,200 per month for 15 years. After that, you will not make any new investments for the next six years, but your account will continue to accrue interest. This is a long term benefit. The amount may seem small at first, but over time the interest on the interest accumulates, increasing the fund.
How will you create a fund of ₹6.90 lakh for your daughter?
Let's say you open an SSY account around the time of your daughter's birth and start depositing ₹1,200 per month. Your total investment in 15 years will be ₹2.16 lakh. After that, you stop depositing money. If the interest rate remains at 8.2% throughout the period, the estimated amount at the end of the 21-year period can be around ₹6.90 lakh. This means, you can accrue an additional interest of approximately ₹ 4.74 lakh on the deposited amount.
Who can open an SSY account?
Parents or legal guardians can open a Sukanya Samriddhi account in the name of a girl below 10 years of age. A minimum annual deposit of ₹250 and a maximum of ₹1.50 lakh can be made under this scheme. So, starting with ₹1,200 per month can be convenient even for families who cannot afford to save a large amount every month.
Sukanya Samriddhi Yojana amount will be available even 21 years ago; Partial withdrawal can be made for higher education, marriage
Withdrawal rules apply
Full withdrawal is not allowed under this scheme. As per the rules, partial withdrawal for higher education is allowed after the girl reaches 18 years of age. The full amount is available on completion of the prescribed period of the scheme. By leveraging small savings, long-term savings and compounding, you can build a fund of approximately ₹6.90 lakh for your daughter's future by depositing just ₹1,200 per month.