The Sukanya Samriddhi Yojana Account is an initiative started by the Government of India with the view of helping the girl child. According to the scheme parents of a girl child can deposit up to 1.5 lakhs in the name of the girl in this account every year. Once the deposit is made it accrues interest at the rate of 8.1% per annum and is set to mature when the girl turns 21 years old or get married, whichever comes first. The account can be opened with a minimum deposit of Rs. 250 and subsequent deposits can be made either monthly or annually, subject to a minimum of Rs. 250 annually. There are no limitations on the number of deposits which are made in a month or a year. The account even allows for a partial withdrawal to be made when the girl turns 18 years old to support payments towards expenses for her education or even her marriage. Another advantage of this scheme is that investments in it need to be made only for 14 years after which none are required and the amount at credit at the end of 14 years will continue to gather interest till the scheme matures. The maximum amount that you can earn with this investment, assuming that you have been investing Rs 1.5 lakhs for 14 years at an interest rate of 8.1% per annum, is Rs. 78, 90,763.
On 23 July 2018, the criteria for minimum annual deposit for the Sukanya Samriddhi Yojana account has been revised to Rs.250 from the earlier amount of Rs.1,000. Also the interest rate for the July-September quarter is 8.1%.
Advantages of Sukanya Samriddhi Account 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 Sukanya Samriddhi Account 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 lakhs the calculators don’t limit the annual investments so if you enter an investment of more than Rs. 1.5 lakhs, 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.
Sukanya Samriddhi Yojana Interest Rate
Earlier, the interest rates of post office schemes were announced yearly. But from the FY 2016-17, the rate of interest for savings schemes are decided on a quarterly basis. The interest rate for the Sukanya Samriddhi Yojana account was set to be 8.1% in the year 2017-18. The interest rate, which is compounded yearly, is said to be the best interest rate when compared to other savings schemes. The scheme not only provides security to the girl child but offers a high rate of interest and tax exemption too.
Sukanya Samriddhi Yojana Tax Benefits
This savings scheme, introduced to provide for a better future of the girl child, is completely tax-free. The initial amount deposited in the scheme is deductible under Section 80C of the Income Tax Act. The cap provided for this deductible is Ra.1.5 lakh. This upper limit of Rs.1.5 lakh also happens to be the upper limit for tax exemption under Section 80C. The interest earned throughout the investment period as well as the final maturity amount received once the account is closed are exempted from taxes.
Calculator Table Format
You can create your own (SSY) Sukanya Samriddhi Yojana Account calculator by making a table with seven columns in the form of a data sheet with all the necessary information to calculate the yearly and monthly contribution.
Given below is the format:
- Column 1: Age of girl child – In this column, you must enter the age of your girl child as on today.
- Column 2: Account age – You must enter the account’s age, which means the number of years the account has been open for. (The Sukanya Samriddhi Scheme takes deposits for a maximum of 14 years)
- Column 3: Date of deposit – In this column, you have to enter the date of deposit of the amount towards the scheme.
- Column 4: Deposit amount – This column has the amount deposited towards the girl child by the guardian.
- Column 5: Principal amount at year end – This column will have the amount available in the account at the end of a financial year. This amount is calculated by adding the total amount at the end of the year and the amount to be deposited for the next year. (Formula from second cell onwards, D3 +G2 and so on)
- Column 6: Total yearly interest – This column will have the interest accumulated under the SSY at the prevailing interest rate.
- Column 7: Total amount at year end – In this column, you will be able to calculate the final amount that you will accumulate at the end of each year. (Formula to be used is Principal Amount + Yearly Interest – E2 +F2 to be used in an excel sheet)
Given below is the sample calculator table:
|Age of girl child||Account age||Date of deposit||Deposit amount||Principal amount at year end||Total yearly interest||Total amount at year end|
Note: Under the SSY scheme, interest calculation is compounded yearly. This is important to note as it will affect your maturity amount when you make monthly deposits.
Sukanya Samriddhi Yojana Account 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 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 monthly and 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:
- 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 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)|
Authorised Banks to open Sukanya Samriddhi Account
Below is the list of Banks of Sukanya Samriddhi Account
- State Bank of India (SBI)
- State Bank of Hyderabad (SBH)
- State Bank of Travancore (SBT)
- State Bank of Mysore (SBM)
- State Bank of Patiala (SBP)
- Syndicate Bank
- Vijaya Bank
- United Bank of India
- UCO Bank
- Punjab National Bank (PNB)
- Oriental Bank of Commerce (OBC)
- Indian Bank
- Punjab & Sind Bank (PSB)
- Indian Overseas Bank (IOB)
- ICICI Bank
- IDBI Bank
- Corporation Bank
- Dena Bank
- Axis Bank
- Allahabad Bank
- Andhra Bank
- Canara Bank
- Central Bank of India (CBI)
- Bank of Maharashtra (BOM)
- Bank of Baroda (BOB)
What is the account limit under the Sukanya Samriddhi Account Yojana?
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.
I already have a PPF account, should I also invest in the SSY?
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.
What is the minimum and maximum deposit required to be made under the Sukanya Samriddhi Yojana scheme?
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.
What is the maturity or termination period of the SSY?
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 can we withdraw from the SSY account and what is the maximum that can be withdrawn?
When the girl child for whom the SSY account has been opened either passes 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.