Sukanya Samriddhi Yojana Calculator

What is Sukanya Samriddhi Yojana (SSY) Calculator?

The Sukanya Samriddhi Yojana (SSY) Calculator helps you plan your daughter's future finances. Enter your investment amount, daughter's age, and start year. The calculator estimates the maturity amount (total payout) and total interest earned. This helps you visualize how your contributions can grow over time with compound interest. It's a user-friendly tool for informed investment decisions towards your daughter's future.

Sukanya Samriddhi Yojana (SSY):

The Sukanya Samriddhi Yojana (SSY) is a government-backed deposit scheme in India specifically designed for the girl child. It was launched in 2015 as part of the Beti Bachao, Beti Padhao (Save Daughter, Educate Daughter) campaign with the primary goal of promoting girl child welfare and ensuring their financial security.

Benefits of Sukanya Samriddhi Yojana (SSY)

• High Interest Rates: SSY offers one of the highest interest rates among small saving schemes in India. The current interest rate for the financial year 2024-2025 is 8.2% per annum, which is compounded annually.
• Tax Benefits: Deposits made to an SSY account qualify for deduction under Section 80C of the Income Tax Act, 1961. Additionally, the interest earned on the account is exempt from income tax under Section 10 of the Income Tax Act.
• Long Tenure: The Sukanya Samriddhi Yojana account has a maturity period of 21 years from the date of account opening. This allows parents or guardians to build a substantial corpus for the girl's future needs.
• Flexible Deposits: The minimum deposit amount required to maintain an SSY account is only Rs. 250 per year. The maximum deposit that can be made in a financial year is Rs. 1.5 lakh.
• Partial Withdrawals: Partial withdrawals are allowed for the girl's higher education expenses after she attains the age of 18 years.
• Account Closure: The account matures on completion of 21 years. However, premature closure is allowed in case of the girl's marriage after she attains the age of 18 years.

Eligibility for Sukanya Samriddhi Yojana (SSY)

• The account can be opened for a girl child up to 10 years of age.
• A maximum of two accounts can be opened, with an exception for twins born in the second birth or triplets in the first birth.
• The account can be opened by the girl's parents or legal guardian.

How does the Sukanya Samriddhi Yojana (SSY) Calculator work?

The Sukanya Samriddhi Yojana (SSY) calculator is a tool that estimates the maturity amount you can expect to receive from your SSY account based on various factors you input. Here's a breakdown of how it works:

Inputs:

• Investment amount per year: This is the amount you plan to deposit annually into the SSY account.
• Age of the girl child: The calculator considers the girl's age at the time of investment as it determines the investment period.
• Starting year of investment: This specifies the year you plan to begin contributions.

Formula To Calculate

The formula to calculate the maturity value of a Sukanya Samriddhi Yojana (SSY) account is based on the principle of compound interest. It involves considering the initial deposit, regular contributions, the prevailing interest rate, and the investment period.

Maturity Value = P [ 1 + (r/n) ]^(nt)

Where:
P: Initial deposit amount
r: Annual interest rate (in decimal form)
n: Number of compounding periods per year (typically 1 for yearly compounding)
t: Total number of investment years

Advantages of Using a Sukanya Samriddhi Yojana (SSY) Calculator

• Simplified Planning: The calculator allows you to estimate your potential monthly interest earnings based on your desired investment amount. This simplifies financial planning as you can see the impact of different investment levels on your income stream.
• Informed Decisions: By visualizing your potential returns, you can make informed choices about how much to invest in the MIS scheme. This helps you align your investment strategy with your financial goals.
• Long-Term Planning: SSY is a long-term investment scheme with a maturity period of 21 years. Using a calculator helps you visualize the potential growth of your investment over this extended period, highlighting the power of compounding interest.
• Tax Benefits Planning: SSY contributions qualify for tax deductions under Section 80C of the Income Tax Act.

Steps to use the Sukanya Samriddhi Yojana (SSY) Calculator

Using the Sukanya Samriddhi Yojana (SSY) Calculator is a straightforward process. Here's a breakdown of the typical steps involved:

1. Input Annual Deposit Amount: Enter the amount that you want to deposit annually.
2. Input Girl's Age: Enter the age of the girl child when you start your investment.
3. Input Investment Starting Year: Enter the year when you are starting the Investment.
4. Click on the Calculate button: This processes your input and generates the following results:
   • Total amount that you have deposited
   • The Interest Earned on the deposited amount
   • Total Maturity Amount that you will receive
   • The Maturity Year

Common Mistakes to Avoid While Using the Sukanya Samriddhi Yojana (SSY) Calculator

To ensure the accuracy of your calculations, avoid these common pitfalls:

• Inaccurate Values: Double-check that you're entering the correct values for proper estimation and planning.

Conclusion

The Sukanya Samriddhi Yojana (SSY) is a great way to save for your daughter's future. While it offers high interest rates and tax benefits, an SSY calculator can help you plan your contributions and see how much the account could grow over time. This easy-to-use tool empowers you to make informed decisions to ensure your daughter has a secure financial future.