Sukanya Calculator
Calculate the estimated maturity amount and interest earned from your Sukanya Samriddhi Yojana (SSY) investments. Plan for your girl child's future.
functions Mathematical Formula
Understanding the Sukanya Samriddhi Yojana (SSY) Calculation
The Sukanya Samriddhi Yojana (SSY) involves a unique two-phase calculation for its maturity amount:
- Contribution Phase (15 years): For the first 15 years from the account opening date, you make regular annual contributions. During this period, each year's contribution is added to the principal, and interest is compounded annually on the total balance.
- Interest Accumulation Phase (6 years): After the 15-year contribution period, no further deposits are required. However, the accumulated balance continues to earn annual compound interest until the account completes 21 years from its opening date (or until the girl's marriage after age 18, whichever is earlier).
The general formula for compound interest, applied iteratively, forms the basis of the calculation:
A = P (1 + r)^t
- A = Final Amount (Maturity Value)
- P = Principal amount at the beginning of the period
- r = Annual Interest Rate (as a decimal)
- t = Number of years
Our calculator simulates this two-phase growth, adding annual investments for 15 years and then letting the total amount grow for another 6 years purely on interest, providing an accurate estimate of your SSY maturity amount.
What is Sukanya Samriddhi Yojana?
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's designed to encourage parents to build a fund for the future education and marriage expenses of their girl child. It offers attractive interest rates and tax benefits, making it a popular choice for long-term savings.
Key Features & Benefits
- High Interest Rate: Offers one of the highest interest rates among small savings schemes, reviewed quarterly.
- Tax Benefits: Deposits are eligible for deduction under Section 80C, and interest earned along with the maturity amount is fully exempt from tax.
- Long-term Investment: Matures after 21 years from account opening or upon the girl's marriage after 18 years of age.
- Guaranteed Returns: Being a government-backed scheme, it offers assured returns, making it a safe investment option.
- Flexible Deposits: Minimum deposit of ₹250 and maximum of ₹1.5 lakh per financial year.
Eligibility Criteria & Account Opening
To open an SSY account, the girl child must:
- Be an Indian resident.
- Be under 10 years of age at the time of account opening.
An account can be opened by a natural guardian or legal guardian for a maximum of two girl children (exceptions for twins/triplets). The account can be opened at any post office or authorized bank branch with necessary documents like the girl child's birth certificate and parent's/guardian's ID and address proof.
Withdrawal Rules & Premature Closure
Partial withdrawals are allowed:
- Up to 50% of the balance from the previous financial year, for higher education expenses, once the girl child turns 18 or passes 10th standard.
Premature closure is permitted in specific circumstances:
- On the death of the account holder.
- In case of life-threatening disease of the girl child or the guardian.
- After 5 years of account opening, under certain compassionate grounds with government approval.
Frequently Asked Questions
What is the minimum and maximum investment for SSY?
You can invest a minimum of ₹250 and a maximum of ₹1.5 lakh in a financial year. Deposits can be made in multiples of ₹50.
Are SSY investments eligible for tax benefits?
Yes, SSY offers triple tax benefits (EEE status): deposits are deductible under Section 80C (up to ₹1.5 lakh), interest earned is tax-exempt, and the maturity amount is also tax-exempt.
How is the interest rate for SSY determined?
The government reviews and declares the interest rate for Sukanya Samriddhi Yojana on a quarterly basis. Once an account is opened, the prevailing interest rate for that financial year applies to deposits made in that year, and the rate changes for future years based on government announcements.
Can I withdraw money before maturity?
Partial withdrawals (up to 50% of the balance) are allowed for the purpose of higher education expenses once the girl child turns 18 or has passed the 10th standard, whichever is earlier. Full maturity withdrawal is only allowed after 21 years from the account opening date or upon the girl's marriage after 18 years of age.
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