Ssy Calculator
Estimate your future Social Security benefits accurately with our Ssy Calculator. Plan for retirement with confidence, understand your potential income, and ...
functions Mathematical Formula
The Sukanya Samriddhi Yojana (SSY) maturity amount is calculated based on annual contributions, a fixed interest rate, and specific deposit and maturity periods.
M = \sum_{t=1}^{N_d} P \times (1+r)^{N_m - t + 1}
- M = Maturity Amount
- P = Annual Contribution
- r = Annual Interest Rate (as a decimal)
- Nd = Deposit Period (15 years)
- Nm = Maturity Period (21 years from account opening)
- t = Year of contribution (from 1 to Nd)
Total Invested = P \times N_d
Total Interest Earned = M - (P \times N_d)
What is Sukanya Samriddhi Yojana (SSY)?
The Sukanya Samriddhi Yojana (SSY) is a government-backed small savings scheme in India, specifically designed to encourage parents to build a fund for their girl child's education and marriage expenses. Launched as part of the 'Beti Bachao, Beti Padhao' campaign, it offers attractive interest rates and tax benefits, making it a popular choice for long-term financial planning for daughters.
Eligibility and Key Features
To open an SSY account:
- A girl child must be an Indian resident.
- She must be below 10 years of age at the time of account opening.
- Only one account can be opened per girl child.
- A family can open a maximum of two accounts (exceptions for twins/triplets).
Key features include:
- A minimum annual deposit of ₹250 and a maximum of ₹1.5 lakh.
- Deposits are made for 15 years from the account opening date.
- The account matures after 21 years from the opening date or upon the girl's marriage after she turns 18.
How This Calculator Works
Our SSY Calculator simplifies the complex calculations involved in determining the future value of your SSY investments. By inputting three key parameters:
- Child's Age (at opening): This helps in understanding the total duration of the scheme relative to the child's age, though the maturity period is fixed at 21 years from opening.
- Annual Contribution: The amount you plan to deposit each year into the SSY account (between ₹250 and ₹1.5 lakh).
- Current Interest Rate: The prevailing interest rate for SSY, which is subject to quarterly revisions by the government.
The calculator then projects your total invested amount, the interest earned over the scheme's tenure, and the final maturity amount, giving you a clear financial outlook.
Benefits and Tax Implications
The Sukanya Samriddhi Yojana offers significant advantages:
- High Interest Rate: Generally offers one of the highest interest rates among small savings schemes, compounded annually.
- Tax Benefits (EET Status): It falls under the Exempt-Exempt-Exempt (EET) category.
- The principal invested is tax-deductible under Section 80C of the Income Tax Act.
- The interest earned is tax-exempt.
- The maturity amount is also tax-exempt.
- Guaranteed Returns: Being a government-backed scheme, it provides a secure and reliable investment option for your daughter's future.
Frequently Asked Questions
What is Sukanya Samriddhi Yojana (SSY)?
The Sukanya Samriddhi Yojana (SSY) is a small savings scheme launched by the Government of India as part of the 'Beti Bachao, Beti Padhao' campaign. It is designed to secure the financial future of a girl child by encouraging parents to save for her education and marriage expenses.
Who is eligible to open an SSY account?
An SSY account can be opened by the natural or legal guardian in the name of a girl child who is an Indian resident and is under the age of 10 years at the time of account opening. A maximum of two accounts are allowed per family, with exceptions for twins or triplets.
What are the minimum and maximum deposit limits for SSY?
The minimum annual deposit required to keep an SSY account active is ₹250. The maximum amount that can be deposited in an SSY account in a financial year is ₹1.5 lakh (₹150,000).
How is the SSY interest rate determined?
The interest rate for the Sukanya Samriddhi Yojana is set by the Government of India and is reviewed and announced on a quarterly basis. It typically remains competitive compared to other small savings schemes and is compounded annually.
When does an SSY account mature?
An SSY account matures after 21 years from the date of its opening. Alternatively, it can be closed earlier upon the marriage of the girl child after she attains the age of 18 years. Deposits are only required for the first 15 years from the account opening date.
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