What is the Sukanya Samriddhi Yojana (SSY)?
The Sukanya Samriddhi Yojana (SSY) is a government-backed small savings scheme launched as part of the 'Beti Bachao, Beti Padhao' campaign. It is designed exclusively for the financial well-being of the girl child. SSY currently offers one of the highest tax-free interest rates among all small savings schemes. Parents can open an account for a girl child below 10 years of age, deposit for 15 years, and the account matures when she turns 21. It also offers tax benefits under Section 80C of the Income Tax Act.
Who Can Use This Calculator?
This calculator is an essential tool for:
- Parents or legal guardians planning for their girl child's future.
- Individuals wanting to estimate the corpus for their daughter's higher education or marriage.
- Investors looking to compare yearly deposits against long-term risk-free returns.
How Can SSY Calculator Help?
- Predict 21-year maturity amount: Instantly see how much your savings will grow by the time the account matures.
- Shows compounding effect: Visualize how the power of compounding works over a long 21-year tenure.
- Helps choose yearly deposit amount: Decide how much you need to save annually to reach a specific financial goal.
- Helps financial planning: Align your savings with future milestones like college fees or wedding expenses.
How SSY Works (Simple Breakdown)
The scheme has a specific structure that makes it unique:
- Interest Rate: The government announces the interest rate quarterly. (Current rates are around 8.2%).
- Deposit Period: You only need to make deposits for the first 15 years.
- Maturity Period: The account continues to earn interest on the accumulated balance from the 15th year until maturity at 21 years.
- Premature Withdrawal: Partial withdrawal (up to 50%) is allowed once the girl turns 18 for education purposes.
SSY Growth Example
| Year | Deposit | Interest Earned | Total Balance |
|---|---|---|---|
| 1 | ₹1,50,000 | + ₹12,300 | ₹1,62,300 |
| 2 | ₹1,50,000 | + ₹25,609 | ₹3,37,909 |
| 3 | ₹1,50,000 | + ₹40,009 | ₹5,27,918 |
| 4 | ₹1,50,000 | + ₹55,589 | ₹7,33,507 |
| 5 | ₹1,50,000 | + ₹72,448 | ₹9,55,955 |
Advantages of SSY
- Govt guaranteed: Backed by the sovereign guarantee of the Government of India, making it completely safe.
- EEE tax benefit: Exempt-Exempt-Exempt status means investment, interest earned, and maturity amount are all tax-free.
- High interest: Generally offers a higher rate than PPF and FDs.
- Secured long-term corpus: Lock-in period ensures the money is saved strictly for the girl's future.
- No market risk: Returns are fixed by the government and not linked to stock market fluctuations.
How to Use the Calculator
- Enter Yearly Deposit: Input the amount you plan to invest annually (Min ₹250, Max ₹1.5 Lakh).
- Enter Girl's Age: Select the current age of your daughter (must be below 10).
- View Results: The calculator will instantly show the total invested amount, total interest earned, and the final maturity value.
Frequently Asked Questions
Who can open SSY account?
A natural or legal guardian can open an SSY account in the name of a girl child from her birth until she turns 10 years old.
What is the minimum & maximum deposit?
You can start with a minimum deposit of ₹250 per year. The maximum deposit allowed is ₹1.5 Lakh per financial year.
What are the partial withdrawal rules?
Once the girl child attains the age of 18 or passes the 10th standard, partial withdrawal up to 50% of the balance is allowed for higher education expenses.
Can NRIs invest in SSY?
No, Non-Resident Indians (NRIs) are not eligible to open an SSY account. If the girl child becomes an NRI after opening the account, the account may be closed.
What happens if deposit stops?
If the minimum deposit of ₹250 is not made in a year, the account is considered in default. It can be revived by paying a penalty of ₹50 per year along with the minimum deposit.
Is SSY better than FD/PPF for girl child?
Generally, yes. SSY usually offers a higher interest rate than PPF and most bank FDs. Additionally, the EEE tax status makes it more attractive than FDs where interest is taxable.
What is maturity amount?
The maturity amount is the total corpus (principal + accumulated compound interest) payable to the girl child after 21 years from the date of account opening.