Sukanya Samriddhi Yojana (SSY) Planner
Calculate the maturity amount and interest earned under the Sukanya Samriddhi Yojana (SSY) girl child savings scheme.
SSY Settings
Maturity Projections
What is the Sukanya Samriddhi Yojana (SSY) Planner?
The Sukanya Samriddhi Yojana (SSY) Planner is a dedicated investment tool built to forecast savings under the government-backed girl child savings scheme in India. SSY offers high interest rates (currently 8.2% p.a.) coupled with sovereign safety and tax exemptions under Section 80C. This planner estimates the total maturity value at the end of the statutory 21-year period, factoring in a 15-year contribution term and the remaining 6 years of compound growth. You can verify rules and interest rates on the official National Savings Institute portal of India.
Formula & Calculation Method
The SSY calculator runs a year-by-year compounding simulation over the 21-year maturity period: 1. **Contribution Phase (Years 1 to 15)**: Deposits are made annually. The balance at the end of each year $t$ compounds at the annual rate $R$: $$\text{Balance}_t = (\text{Balance}_{t-1} + P) \times \left(1 + \frac{R}{100}\right)$$ Where: - $P$ is the yearly contribution (statutory limit of ₹250 to ₹1,50,000 per year). - $R$ is the annual interest rate (e.g., 8.2%). 2. **Growth Phase (Years 16 to 21)**: No new contributions are permitted. The balance continues to compound annually for the remaining 6 years: $$\text{Balance}_t = \text{Balance}_{t-1} \times \left(1 + \frac{R}{100}\right)$$ 3. **Total Interest Earned**: $$\text{Interest Earned} = \text{Maturity Value} - (P \times 15)$$
Worked Example Calculation
Let's analyze an SSY projection example. Suppose you open an account for your newborn daughter and invest ₹1,00,000 annually at the start of each year for the 15-year contribution period at an annual interest rate of 8.2%. 1. **Contribution Phase (Years 1 to 15)**: - You deposit ₹1,00,000 every year for 15 years. - Total Invested Principal = ₹15,00,000. - Using the annual compounding formula, the balance accumulates to ₹29,88,575 at the end of year 15. 2. **Maturity Phase (Years 16 to 21)**: - No deposits are made for the next 6 years. - The balance compounds from ₹29,88,575 to ₹47,94,847 by the end of year 21. 3. **Cumulative Gains**: - Total Maturity Amount = ₹47,94,847. - Total Interest Earned = ₹32,94,847. At maturity, the account pays out a completely tax-free lump sum of ₹47,94,847 to your daughter.
Frequently Asked Questions (FAQ)
Who is eligible to open an SSY account?
The account can be opened by a parent or legal guardian for a girl child who is an Indian resident and under the age of 10 years at the time of account opening. A maximum of two accounts are allowed per family (three in case of twins/triplets).
What are the minimum and maximum annual deposit limits in SSY?
A minimum deposit of ₹250 and a maximum deposit of ₹1,50,000 must be made in a financial year. If you deposit more than ₹1.5 Lakhs, the excess amount does not earn any interest and can be withdrawn.
Can the money be withdrawn before 21 years?
Partial withdrawal of up to 50% of the accumulated balance is allowed for the girl child's higher education once she reaches the age of 18 or passes the 10th standard. The account can be closed prematurely only if the girl child gets married after turning 18.
Is the maturity amount tax-free?
Yes. Sukanya Samriddhi Yojana falls under the Exempt-Exempt-Exempt (EEE) category. Contributions qualify for Section 80C deductions, interest accrued is tax-free, and the final maturity amount is completely exempt from income tax.
What happens if I fail to make the minimum deposit of ₹250?
If the minimum annual deposit of ₹250 is not made, the account is deactivated. It can be regularized by paying a penalty fee of ₹50 per year of default along with the minimum deposit amount for each year.
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