Kolkata: Sukanya Samriddhi Yojana (SSY), as the name implies, is can be opened only in the name of a girl child. This scheme was launched on January 22, 2015. It was introduced as part of the Beti Bachao, Beti Padhao campaign. The goal of the scheme was to promote the welfare and education of the girl child in India. Therefore, one cannot invest in it if one doesn’t have a daughter.
Sukanya Samriddhi Yojana is ideal for one who does not have a fair risk appetite and prefers to settle for guaranteed-return instruments to invest foor the future. One key point about SSY is that it can be opened at any time after the birth of a girl child. However, one cannot open it in the name of a girl who is aged more than 10. The maturity period of the the scheme is 21 years from the opening of the account, or when the woman ties the knot after attaining 18 years of age.
Sukanya Samriddhi Yojana calculator
Suppose a parent opens a SSY account in the name of his/her daughter shortly after her birth and starts depositing Rs 12,500 every month in it. A SSY calculator will tell you that if the parent continues this for the full tenure, the final amount payable at the end of the 21 years is Rs 69,32,648. Out of this amount, Rs 46,82,648 will be earned by way of interest while the out-of-pocket expense will be Rs 22,50,000.
The point to note here is that if the investment is made once a year (Rs 1,50,000) and not in 12 equal instalments, the return will be higher though the investment would be the same Rs 22,50,000. The interest earned will amount to Rs 49,32,119 while the total maturity amount will be Rs 71,82,119.
Now consider a parent investing Rs 10,000 per month. The total amount at the end of the tenure will be Rs 55,46,118 — the nominal investment will be Rs 18,00,000 while the interest component will be Rs 37,46118.
Invest for the first 15 years
The point to remember is that the parent has to invest only for the first 15 years after opening the account. The investment stops after 15 years is completed and the kitty keeps earning interest. The entire amount is payable after 21 years is over from the date of investment. If one invests in the first year of a girl child, the amount becomes available when she turns 21 — an ideal age to start higher education. The amount can also be seed money for a small business of her own.
SSY earns an interest of 8.2%, which is significant given the climate of interest rates. One can invest a maximum of Rs 1.5 lakh a year in a SSY account. In a way, the benefits are more than what the interest rate signals since SSY investments are eligible for tax deductions under Section 80C of the Income Tax Act 1961. Moreover, both the interest earned and the maturity amount are tax-exempt.
Sukanya Samriddhi Yojana is the only policy in India that is directed at the girl child and offers guaranteed returns at a significant interest rate and harnesses the power of long-term compounding. One can buy it in post offices and authorised banks. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
