The Sukanya Samriddhi Yojana or SSY carries all possible benefits of a debt instrument – high interest rate, a sovereign guarantee and income tax benefits. The investment is capped at Rs 1.5 lakh a year – the maximum limit allowed under Section 80C of the Income Tax Act 1961.
Frequency of investment
Now let us see what is the maximum benefit that one can derive from the Sukanya Samriddhi Scheme. One can invest in the scheme once a month, once in 3 months, once in 6 months and once a year.
Sukanya Samriddhi Yojana Interest rate
It is important to note that the amount of interest earned will depend on the frequency of investment. If the investor deposits Rs 1.5 lakh in one single instalment at the beginning of the financial year, he/she will earn more than the interest earned if the amount is divided into 12 instalments and paid once every month.
Rs 1.5 lakh once a year
Therefore, let’s assume that one invests Rs 1.5 lakh in one shot in the SSY account. This is done for 15 years, the tenure of the scheme. This instrument bears interest at the rate of 8.2%, which is the highest for any guaranteed-return debt instrument in India.
The rules state that though the investor does not need to contribute anything to the SSY account after 15 years, the instrument matures 21 years after the account is opened. The entire interest along with the principal will be paid at the end of this period.
If one invests Rs 1.5 lakh once a year, the interest earned will come to Rs 49,32,119 on a principal of Rs 22.50 lakh. The total amount payable on maturity to the account holder will be Rs 71,82,119.
Rs 1.5 lakh spread over 12 months
Let’s see what will happen if the amount of Rs 1.5 lakh is divided into Rs 12,500 which is paid every month to the account. While the principal in this case will be the same Rs 22.50 lakh, the interest earned will come down to Rs 46,82,648 (Rs 46.82 lakh). Therefore, the investor will be entitled to a total payment of Rs 69,32,648, or Rs 249,471 less than the yearly instalment of Rs 1.5 lakh.
The interest rate of SSY is periodically reviewed by the government of India.
Sukanya Samriddhi Yojana: What is the max interest that you can earn on Rs 1 lakh and Rs 1.5 lakh annual investment. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
