Sukanya Samriddhi Yojana (SSY) calculator: Your child may have ₹51 lakh at age 21

SSY calculator: Sukanya Samriddhi Yojana or SSY is a government of India-backed small saving scheme that helps parents to save money for long term financial requirements of their girl child. In this completely risk-free investment option an investor is allowed to invest till its girl child becomes 14 years of age. However, one would be able to withdraw 50 per cent maturity amount after the girl child become 18 years of age and full maturity amount when the girl becomes 21 years of age.

In SSY scheme, Government of India is giving SSY interest rate of 8 per cent per annum, which is paid on quarterly basis. The central government announced Sukanya Samriddhi Yojana interest rate of 8 per cent epr annum for April to June 2023 quarter. Earlier it was 7.60 per cent per annum. So, in Q1FY24, Government of India (GoI) raised SSY interest rate by 40 bps, which is a good news for SSY accountholders.

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Sukanya Samriddhi Yojana calculator

As per the SSY calculator, if a person starts investing in Sukanya Samriddhi Yojana account immediately after the birth of its gill child, he or she would be able to invest for 15 years as the SSY scheme allows an investor to invest in this small saving scheme till its girl become 14 years of age. As it allows an investor to claim income tax benefit under Section 80C of the income tax act, if an investor invests ₹10,000 per month then he would be able to invest ₹1.20 lakh per annum in 12 equal instalments.

As per the SSY calculator, if an investor don't go for 50 per cent maturity amount after its girl child becomes 18 years of age, he or she would be able to get a maturity amount of ₹51,03,707 or around ₹51 lakh. In this ₹51 lakh, one's total investment would be ₹18 lakh and the interest earned after the 21 years of maturity period would be ₹33,03,707 or around ₹33 lakh.

See SSY calculation below:

Here, Sukanya Samriddhi Yojana interest rate has been assumed 7.6 per cent for the entire period as it keeps on changing and we have kept the interest rate at lower levels.

So, if an investor starts investing ₹10,000 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.