Introduction
The Government of India, as part of its ‘Beti Bachao, Beti Padhao’ initiative, launched the Sukanya Samriddhi Yojana (SSY) in 2015. This savings scheme focuses on promoting the welfare of girl children in the country. The scheme offers guaranteed returns combined with tax exemptions on the maturity amount, including interest accrued. With the help of a Sukanya Samriddhi Yojana calculator, one can easily estimate the total investment value at maturity and interest earnings that can be expected out of the investment. Here, we will explain this calculator in detail and also share additional information on the scheme.
Table of Contents
- 1 – Who can use the calculator?
- 2 – How does the calculator function?
- 3 – How can Fisdom’s SSY calculator help you?
- 4 -What are the benefits of using Fisdom’s Sukanya Samriddhi Yojana calculator?
- 5 – Conclusion
Methods to use the Sukanya Samridhi Yojana Calculator
To understand the methodology in using the SSY calculator, we need to understand different aspects like the eligibility conditions for the scheme, the permissible contribution, frequency of investments, etc. The details of the same are given hereunder.
Who can use the calculator?
An applicant who satisfies the eligibility conditions of the Sukanya Samriddhi scheme can make use of the calculator to estimate returns from the scheme. The eligibility conditions for Sukanya Samriddhi scheme are:
- The girl child’s age should be under 10 years
- The girl child should be a resident citizen of India
- SSY accounts can be opened for a maximum of two girl children per family.
The SSY calculator requires a user to provide his/her daughter/s age and investment amount to estimate the investment’s maturity value. The scheme’s minimum investment
amount is Rs. 250 and maximum that can be invested in a financial year is Rs 1.5 lakhs.
How does the SSY calculator work?
To begin using the calculator, an investor who has opened the SSY account for his/her girl child must enter the following information:
- Annual investment amount
- Year in which investment has started
Here is how the SSY calculator functions:
The maturity year and current interest rate will be auto-populated in the calculator. Upon entering the above-mentioned details, the calculator shows the total value of investment along with the interest earnings on the right-hand side.
The calculator estimates the approximate maturity value of the investment made. The scheme attains maturity after completion of 21 years, starting from the date of account opening.
The formula used to calculate the returns under the scheme is
A = P (1+r/n) ^nt
where
P = Initial Deposit
r = Rate of interest
n = Frequency that which it compounds every year
t = Number of years
A = Amount at maturity
Assumptions in the calculator:
- Continuity of investment: As per the conditions of the scheme, an investor must continue to deposit every year for 15 years, starting from the date of account opening. In this regard, the SSY calculator assumes that the user has made all the required deposits each year consistently of the same amount as entered in the calculator.
- Continuity of interest earnings: The scheme does not require an investor to make any
deposits between the 15th and 21st year of the scheme enrollment. However, one can still earn interest on the deposits made earlier. In this regard, the calculator considers the interest accrued through all those years.
To arrive at the maturity value, Fisdom’s SSY calculator assumes an interest rate of 7.6% per annum compounded annually and is applicable for the entire 21 years of the Sukanya Samriddhi Yojana account.
What details are shown in the SSY calculator?
As per the information entered by the user, the SSY calculator will show the following details:
- The investment maturity year
- The total maturity value
- The current return rate used to arrive at the maturity value
- The total interest earnings
Calculation of Maturity Value under SSY after 21 years
To understand the calculation of maturity value under the scheme, let us consider different annual investments and the total interest and corpus at the end of maturity investment.
Consider an investment amount of Rs. 1,00,000 annually. The interest amount and the maturity amount under the scheme are calculated below.
| Year | Start year corpus | Investment made during the year | Total Investment during the year | Interest rate | Interest Amount | Amount at the end of the year |
| 1 | – | 1,00,000.0 | 1,00,000.0 | 7.6% | 7,600.0 | 1,07,600.0 |
| 2 | 1,07,600.0 | 1,00,000.0 | 2,07,600.0 | 7.6% | 15,777.6 | 2,23,377.6 |
| 3 | 2,23,377.6 | 1,00,000.0 | 3,23,377.6 | 7.6% | 24,576.7 | 3,47,954.3 |
| 4 | 3,47,954.3 | 1,00,000.0 | 4,47,954.3 | 7.6% | 34,044.5 | 4,81,998.8 |
| 5 | 4,81,998.8 | 1,00,000.0 | 5,81,998.8 | 7.6% | 44,231.9 | 6,26,230.7 |
| 6 | 6,26,230.7 | 1,00,000.0 | 7,26,230.7 | 7.6% | 55,193.5 | 7,81,424.3 |
| 7 | 7,81,424.3 | 1,00,000.0 | 8,81,424.3 | 7.6% | 66,988.2 | 9,48,412.5 |
| 8 | 9,48,412.5 | 1,00,000.0 | 10,48,412.5 | 7.6% | 79,679.4 | 11,28,091.9 |
| 9 | 11,28,091.9 | 1,00,000.0 | 12,28,091.9 | 7.6% | 93,335.0 | 13,21,426.8 |
| 10 | 13,21,426.8 | 1,00,000.0 | 14,21,426.8 | 7.6% | 1,08,028.4 | 15,29,455.3 |
| 11 | 15,29,455.3 | 1,00,000.0 | 16,29,455.3 | 7.6% | 1,23,838.6 | 17,53,293.9 |
| 12 | 17,53,293.9 | 1,00,000.0 | 18,53,293.9 | 7.6% | 1,40,850.3 | 19,94,144.2 |
| 13 | 19,94,144.2 | 1,00,000.0 | 20,94,144.2 | 7.6% | 1,59,155.0 | 22,53,299.2 |
| 14 | 22,53,299.2 | 1,00,000.0 | 23,53,299.2 | 7.6% | 1,78,850.7 | 25,32,149.9 |
| 15 | 25,32,149.9 | 1,00,000.0 | 26,32,149.9 | 7.6% | 2,00,043.4 | 28,32,193.3 |
| 16 | 28,32,193.3 | 28,32,193.3 | 7.6% | 2,15,246.7 | 30,47,440.0 | |
| 17 | 30,47,440.0 | 30,47,440.0 | 7.6% | 2,31,605.4 | 32,79,045.5 | |
| 18 | 32,79,045.5 | 32,79,045.5 | 7.6% | 2,49,207.5 | 35,28,252.9 | |
| 19 | 35,28,252.9 | 35,28,252.9 | 7.6% | 2,68,147.2 | 37,96,400.1 | |
| 20 | 37,96,400.1 | 37,96,400.1 | 7.6% | 2,88,526.4 | 40,84,926.5 | |
| 21 | 40,84,926.5 | 40,84,926.5 | 7.6% | 3,10,454.4 | 43,95,381.0 | |
| 28,95,381.0 |
In the above example, the total interest earned over the years is Rs. 28,95,381 and the amount available at the time of maturity is Rs. 43,95,381.
Similarly, the above calculation can be used to understand the interest amount and maturity value at different annual investment levels.
| Annual Investment amount | Total yearly investment over the tenure of the scheme (15 years) | Total interest earned during the tenure | Maturity value |
| Rs. 10,000 | Rs. 1,50,000 | Rs. 2,89,538 | Rs. 4,39,538 |
| Rs. 20,000 | Rs. 3,00,000 | Rs. 5,79,076 | Rs. 8,79,076 |
| Rs. 50,000 | Rs. 7,50,000 | Rs. 14,47,691 | Rs. 21,97,691 |
| Rs. 75,000 | Rs. 11,25,000 | Rs. 21,71,536 | Rs. 32,96,536 |
| Rs. 1,50,000 | Rs. 22,50,000 | Rs. 43,43,071 | Rs. 65,93,071 |
Sukanya Samriddhi Yojana closure on maturity
Sukanya Samriddhi Yojana Scheme allows the investors to withdraw the corpus upon maturity after the completion of 21 years. This scheme was initiated to empower young women in the country and therefore these funds can be used for their higher education or marriage expenses. The girlchild can withdraw the amount after 21 years or when she attains 18 years of age without any charges and the corpus is also tax-free. In the latter case, an affidavit has to be provided to assert the age claim and the withdrawn amount can be used for higher education or for marriage expenses after submitting the necessary proof.
The girl child can withdraw 50% of the corpus for higher education at the age of 18 years and interest will be applicable on the balance amount till the competition of 21 years. If the girlchild gets married before the completion of 14 years after attaining the age of 18 years, the account will not be operative anymore. No further deposits to the account can be made.
How can Fisdom’s SSY calculator help you?
Fisdom’s Sukanya Samriddhi Yojana calculator is specially crafted for those who are planning to invest in the SSY scheme for their girl child/children. It helps an investor
in ascertaining the investment maturity amount that his/her girl child can receive once the scheme’s tenure comes to an end.
In any kind of investment, manual computation of returns can be cumbersome and may involve human errors. With Fisdom’s SSY calculator, one can get error-free results.
Based on the maturity amount reflected by the calculator, an investor can determine the amount of regular contribution that’ll have to be made to reach the desired maturity amount.
Investors who want to effectively evaluate their SSY investment and potential returns can plan their investment portfolio after using the Fisdom Sukanya Samriddhi Yojana calculator.
What are the benefits of using Fisdom’s
Sukanya Samriddhi Yojana calculator?
Fisdom’s Sukanya Samriddhi Yojana calculator has a number of benefits for an investor. Some of them are listed below:
- SSY calculator provides accurate figures and helps in eliminating the possibility of human errors, which generally occur in manual calculations.
- The calculator helps investors in easily determining the interest earnings and the maturity value within a matter of a few seconds.
- Using this calculator, investors can calculate the maturity value of their SSY investment for both monthly and yearly contributions.
- The calculator results allow an investor to plan finances for his/her girl child and help her in achieving certain financial goals such as higher education, medical needs,
career aspirations, marriage, etc. - This easy-to-use online calculator can be used at any time, any number of times, and for free.
What are the limitations of using the SSY calculator?
Some of the basic limitations of using the SSY calculator are:
- If the calculator is not configured accurately, it will not provide correct results.
- Investors will have to keep in mind the maximum permissible annual contribution to the scheme is restricted to Rs. 1,50,000. However, the SSY Calculator does not account for this restriction any amount entered manually over the specified limit will also yield results but the same will not be accepted under the scheme as the maximum amount allowed to invest annually in the scheme is Rs. 1,50,000.
Conclusion
At maturity, the corpus accumulated in an SSY account can be withdrawn by the girl child. To withdraw the corpus, the girl child must furnish, withdrawal application form, citizenship proof, ID and address proof. Premature withdrawals are not allowed except for marriage purposes once the girl has attained 18 years of age.
FAQs
A parent or guardian can open an SSY account on behalf of his/her girl the child before she has attained 10 years of age.
In case one fails to make timely deposits in the SSY account, the account may be considered inactive and a penalty charge of Rs. 50 must be paid towards the revival of the same.
The maximum amount that can be deposited in an SSY account in a financial the year is Rs. 1.5 lakhs.
Under section 80C, one can claim income tax benefits for investment made towards an SSY account in a financial year.
In case the account holder meets an untimely death or is undergoing a treatment for a life-threatening ailment, the SSY account can be closed before maturity.
