Who are the individuals that can use the SSY calculator?
Individuals who are planning to invest in the SSY scheme can check the amount they will receive at the time of maturity by using the SSY calculator.
In order for individuals to use the SSY calculator, they must meet the eligibility criteria of the scheme. As per the scheme, the below-mentioned individuals can open an SSY account:
- The girl must be a resident of India.
- The age of the girl should not exceed 10 years.
- In a single family, the Sukanya Samriddhi Yojana account cannot be opened for more than two girls.
Method to use Sukanya Samriddhi Yojana calculator
Once the individual has met the eligibility of Sukanya Samriddhi Yojana, the age of the girl child and the amount of investment that must be made should be provided in the calculator. The minimum and maximum amount that can be invested towards the scheme are Rs.250 and Rs.1.5 lakh, respectively. Earlier, the minimum contribution was Rs.1,000. However, the Indian Government reduced the minimum contribution to Rs.250 in July 2018.
How does SSY calculator work?
Based on the details entered by the individual, the SSY calculator determines the amount of money the individual will receive on maturity. The maturity period of the scheme is 21 years.
It is mandatory for individuals to make at least one contribution in a year until the completion of 14 years. The calculator will assume that the same amount of deposit is made on a yearly basis. No deposits are required to be made between year 15 and year 21. However, individuals will earn interest on the previous contributions during this period. The calculator also considers the interest that is generated when providing the final amount.
What details are shown by SSY calculator?
Depending on the details that are provided by the individual, the calculator shows the year the scheme matures, the interest rate that was used, and the maturity value.
An example of the details shown by the Sukanya Samriddhi Yojana calculator is shown below:
- Yearly deposit: Rs.1,00,000
- Rate of Interest: 8.50%
|Year||Financial Year||Rate of Interest (%)||Deposit made during the year (Rs.)||Interest generated during the year (Rs.)||Deposits made up to the year (Rs.)||Interest generated up to the year (Rs.)||Balance at the end of the year (Rs.)|
Sukanya Samriddhi Yojana Closure on Maturity
The account closure on maturity is guided by certain rules.
- The account matures on completion of 21 years from the date of creation of the account. The complete maturity amount along with the interest accrued can be withdrawn on maturity.
- If the girl, for whom the account was opened, gets married before the completion of the maturity period, she can withdraw the balance amount, provided she is 18 years old at the time of such withdrawal. The girl has to produce an affidavit that states that she is 18 years of age at the time of withdrawal.
- If the girl attains the age of 18 and gets married before the completion of 14 years of the term, the account cannot be operated. Further deposits to the account cannot be made even if the mandated deposited were not made earlier.
- The girl child is the only authorized person who can withdraw the maturity amount. She is required to submit the passbook and the Sukanya Samriddhi Yojana withdrawal slip to make the withdrawal.
- If the girl gets married after attaining majority and withdraws 50% of the amount for the purpose of marriage, she may choose not to close the account. Though further deposits cannot be made, the balance amount will earn interests until the completion of the 21-year term.
Calculation of Maturity Value under SSY after 21 Years
As it is difficult to make an accurate calculation of maturity value in this scheme as it depends on many variables. However, by keeping the variable constant with the monthly and the yearly contribution as the only variable, the maturity value can be calculated in the form of a table.
For the following calculation, some assumptions have been made, they are:
- The rate of Interest is assumed to be 8.1% throughout the period of the scheme for 21 years.
- Monthly contributions have to be made on the 1st day of every month.
- Yearly contributions have to be made on 1st of April every year.
- A fixed amount for monthly or yearly contribution has been consumed.
- It has also been assumed that throughout these 21 years, there have been no withdrawals made.
Yearly Contribution Table:
|Year||Investment Amount (Yearly)||Investment Amount (14 Years)||Maturity Amount (21 Years)|
Monthly Contribution Table
|Instalment Amount (Monthly)||Investment Amount (14 Years)||Maturity Amount (21 Years)|
Advantages of Sukanya Samriddhi Yojana Calculator
There are numerous advantages to the Sukanya Samriddhi Yojana calculator and they are:
- It allows you to know exactly what you will get as the maturity value when the account matures.
- If you have set it up in an excel sheet then you can put in what you intend to invest in the current and see how it will affect the maturity value.
- You can even set up the calculator to calculate the maturity value based on monthly or yearly investments.
- If configured correctly, the Sukanya Samriddhi Yojana calculator can be extremely accurate.
- It can eliminate the mistakes that can creep in if you calculate the maturity value manually.
- You can change the amount you plan on investing at any time and still get the maturity value in seconds.
Limitations of SSY Calculator
Even though the Sukanya Samriddhi Yojana calculator is very convenient and useful, there are some things that work against this calculator.
- If it is not configured correctly it can provide incorrect values.
- Even though the government has provided a cap of Rs. 1.5 lakh the calculators don’t limit the annual investments so if you enter an investment of more than Rs. 1.5 lakh, it will still calculate a maturity value.
- Since the calculator is configured manually, you will have to enter the Sukanya Samriddhi Yojana interest rate every time that it changes in the future.
FAQ's on Sukanya Samriddhi Yojana Calculator
- What is the account limit under the Sukanya Samriddhi Account Yojana?
- I already have a PPF account, should I also invest in the SSY?
Maximum of one SSY account can be opened in the name of a girl child and a guardian can open up to two accounts. In case, the guardian has triplet daughters from first birth or twin daughters from the second birth, maximum of 3 accounts can be opened by the parent, where one account is opened in the name of a single girl child.
Having a PPF is a good idea from an investment perspective. Although SSY is similar in nature to PPF in terms of investment, however, some of the reasons that make SSY a better option are:
- When you exhaust your limit in PPF, you can opt for SSY to save more for your girl child.
- PPF is mostly used for savings for yourself, while SSY is exclusively designed for your daughters.
- By investing in both PPF and SSY, you can save up to Rs.3,00,000 p.a. for your daughter.
- SSY offers a higher interest rate than PPF.
A minimum of Rs.250 and a maximum of Rs.1,50,000 should be deposited every year for 15 years from the date of opening of the SSY account
The SSY account terminates or matures after 21 years from the date of opening of the account. Once the account reaches its maturity, it stops earning interest.
When the girl child for whom the SSY account has been opened either pass 10th standard or turns 18, you can withdraw from the account. A maximum of 50% of the deposit made towards the account can be withdrawn to be used for higher education of the girl child.
Since SSY was launched by the Indian Government, there are no risks.
Under Section 80C of the Income Tax Act, 1961, tax benefits of up to Rs.1.5 lakh are exempted.
Currently, the rate of interest is 8.5% for the financial year 2020-21.
No, a girl child can have only one SSY account under her name.
No, loan facilities are not provided under SSY.
The minimum amount is Rs.1,000 and the maximum amount is Rs.1.5 lakh per year.
The rate of interest is determined by the Central Government on a quarterly basis.
Yes, an individual can transfer his/her SSY account.
No, the SSY account cannot be prematurely closed.
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