BackSukanya Samriddhi Yojana: How to accumulate ₹63 lakh when your girl turns 21
Central government has increased Sukanya Samriddhi Yojana interest rate for April to June 2023 from 7.6% to 8%
PremiumSukanya Samriddhi Yojana calculator: The central government has declared interest rate of small saving schemes for the first quarter of financial year 2023-24. In this interest rate declaration for government-backed small saving schemes, the central government has increased Sukanya Samriddhi Yojana (SSY) interest rate from 7.60 per cent to 8 per cent, a return that debt mutual fund investors expect on their investment for long term. However, this SSY interest rate is changeable on quarterly basis but one can expect to get around 7.60 to 8 per cent return if someone begins investing in Sukanya Samriddhi Yojana account after the birth of its girl child.
If an investor starts investing in SSY account immediately after the birth of its girl child, he or she would be able to contribute for 15 years as one can deposit in one's Sukanya Samriddhi Yojana account till its gild attains 14 years of age. After the girl becomes 14 years old, one can withdraw 50 per cent of the maturity amount when the girl becomes 18 year old. And rest of the maturity amount can be withdrawn when the girl child becomes 21 year old. However, one can take full withdrawal amount after the girl becomes 21 years old if they don't find appropriate to withdraw money from one's SSY account.
Sukanya Samriddhi Yojana maturity
Assuming around 7.6 per cent return on one's money at the time of maturity, if a person invests ₹12,500 per month in 12 instalments, then the investor will be able to consume one's ₹1.5 lakh income tax benefit limit under Section 80C limit in one financial year. If the investor takes full withdrawal when the girl becomes 21 year old, then the SSY maturity amount will be around ₹63,79,634.
See SSY calculator below:
So, if an investor starts investing ₹12,500 per month in Sukanya Samriddhi Yojana account immediately after the birth of one's girl child, then the girl will be a millionaire at the age of 21.
Income tax benefit
As mentioned above, an investor can claim income tax benefit on up to ₹1.50 lakh invested in SSY account in single financial year under Section 80C of the income tax act. The SSY interest earned and SSY maturity amount will be 100 per cent tax exempted as well. So, Sukanya Samriddhi Yojana is an EEE investment instrument.
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