Securing the future of our children is one of the primary financial goals of a vast majority of people in this country. There are multiple ways of investing in market-linked and guaranteed-return schemes in India to choose depending upon one’s risk appetite.
Sukanya Samriddhi Yojana interest rate, benefits
The ones who do not want to take any risk at all can go for Sukanya Samriddhi Yojana (SSY). However, one must remember that as the name implies, it can be opened only in the name of a girl child.
One salient point about SSY is that it can be opened at any time after the birth of a girl child. But it must be opened before she turns 10.
The maturity term of the scheme is 21 years from the opening of the account or when she gets married after 18 years.
Another important point: one has to invest in this scheme for the first 15 years. After this period, the scheme will continue to earn interest for the rest of the tenure ie, six years.
One can invest a maximum of Rs 1.5 lakh a year in a SSY account.
The current interest rate on the SSY account is 8.2% per annum.
Now let’s check out the SSY calculator and find out how much money can one invest through regular investment in this account.
Sukanya Samriddhi Yojana calculator
Suppose a family starts saving Rs 10,000 every month in the SSY account opened in the name of their daughter. They are prudent enough to begin saving from the time she is only a few months old since there is no minimum age to begin.
Therefore, they deposit the same amount every month.
In this way, a total amount of Rs 55,46,118 would accumulate in the account 21 years after beginning to invest. The total nominal amount they would invest will be Rs 18 lakh on which they would earn an interest of Rs 37,46118.
Even if they invest half the amount ie, Rs 5,000 per month, the total amount after 21 years would turn into Rs 27,73,059.
It’s a decent amount that can be easily used to part fund one’s higher studies, or to run a business. It would also help a family to get their daughter married off.
Now let’s see what the corpus will turn into if one invests the maximum Rs 1.5 lakh in SSY once a year.
In that case, the total amount would stand at Rs 71,82,119 after 21 years. While the principal amount invested would be Rs 22.50 lakh, the rest Rs 49,32,119 would be earned as interest.
Sukanya Samriddhi Yojana was launched in 2015 by Prime Minister Narendra Modi. It offers an interest rate of 8.2% and is a safe and guaranteed-return scheme that also offers the benefit of tax deduction under Section 80C of the Income Tax Act 1961. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
