What is Sukanya Samriddhi Yojana?
Sukanya Samriddhi Yojana (SSY) is a scheme of Government of India launched in favour of the girl child as a part of ‘Beti Bachao Beti Padhao’ campaign. The scheme is a small deposit scheme and attracts heavy tax benefit which is why this scheme has gained popularity amongst the Indian citizens. The benefit of Rs. 1.5 lakh as tax benefit is applicable on the scheme. Also, the maturity amount and interest earned against the scheme are tax-free. This scheme was mainly designed to meet the expenses of education and marriage of girl child.
The amount and interest that will be earned against the scheme can be calculated using sukanaya samriddhi account calculators that are available online free of cost.
How To Open a SSY Account?
Individuals or parents who wish to secure their child’s future and are willing to invest in the SSY scheme can use the sukanya samriddhi interest calculator to know the exact amount they will receive at the time of maturity. The individuals must meet the requirements to use SSY calculators. Written below are conditions for opening an SSY account:
- The girl child should be an Indian citizen
- The girl should be less than 10 years of age
- In a single-family, only two accounts for two girl child can be opened against Sukanya Samriddhi yojana.
What is the eligibility criteria for SSY?
Once the investor has completed all the eligibility criteria for Sukanya Samriddhi Yojana, he needs to mention the age of the girl and the investment amount in the SSY calculator. The amount ranging from Rs. 250- Rs. 1.5 lakh can be invested in the scheme. Before July 2018, the minimum contribution was Rs. 1000, however now the Government of India has reduced the minimum contribution amount to Rs. 250.
SSY Maturity Amount
The SSY calculator will decide the amount of money the Girl will receive at the time of maturity based on the details entered. The important point to notice here is that the maturity period of the scheme is 21 years. However, it is has been made mandatory for the individual to invest at least once per year in the scheme till 14 years.
It is assumed that the same deposit is made every year. From 15 year to 21 years no deposit need to add in the scheme. However, interest is paid to the individual during this period which is also considered by the calculator while computing the final amount receivable after maturity.
Details Displayed by the SSY Calculator
Based on the details filled by an individual the SSY calculator computes the year of the scheme maturity, the interest rate of the scheme, and the final maturity value.
Let us understand this better with an example. Let us assume the following:
Yearly deposit: Rs. 1, 00,000
Interest Rate: 8.50%
|Year||Financial Year||Rate of Interest (%)||Deposit made during the year (Rs.)||Interest generated during the year (Rs.)||Deposits made up to the year (Rs.)||Interest generated up to the year (Rs.)||Balance at the end of the year (Rs.)|
The scheme conclusion on maturity is guided by specific principles.
- The account matures on consummation of 21 years from the date of conception of the scheme. The total development sum alongside the interest collected can be withdrawn after maturity.
- If the girl, for whom the scheme was opened, gets married before the completion of the development time frame, she can withdraw the remaining amount, if she is 18 years of age at the hour of such withdrawal. The girl needs to present an affidavit that expresses that she is 18 years old at the hour of withdrawal.
- In the event that the girl achieves the age of 18 and gets married before the finishing of 14 years of the term, the scheme can’t be worked. Further, the scheme can’t be made regardless of whether the mandatory deposits were not made before.
- The young girl is the main approved individual who can withdraw the maturity amount. She is required to present the passbook and the Sukanya Samriddhi Yojana withdrawal slip to make the withdrawal.
- In case the girl gets married subsequent to attaining maturity of the scheme and withdraws half of the amount for marriage, she may decide not to close the scheme. In spite of the fact that further deposits can’t be made, the balance sum will procure interests until the fulfilment of the 21-year term.
Calculation of Maturity Value after Completing 21 Years
The calculation of the maturity value depends largely on the various variable included and therefore it is difficult to calculate the exact amount. However, if we put every variable constant except the monthly & yearly contribution the amount receivable after maturity can be calculated as per the table below.
- For calculating the maturity amount we are taking the following assumptions:
- Interest rate is assumed as 8.1 % throughout 21 years period
- Monthly contributions are made on first of every month
- Yearly contributions are made on 1st April of every year
- A fixed amount has been consumed in the form of monthly & yearly contributions
- We also assume that throughout the period of 21 years, no withdrawals have been done.
Yearly Contribution Table
|Year||Investment Amount (Yearly)||Investment Amount (14 Years)||Maturity Amount (21 Years)|
Monthly Contribution Table
|Instalment Amount (Monthly)||Investment Amount (14 Years)||Maturity Amount (21 Years)|
Benefits of Sukanya Samriddhi Interest Calculator
Following are the numerous advantages of SSY interest calculator:
- It helps in determining the exact value that will be received after maturity.
- If you maintaining the records in an excel format, then you can easily plan your investments and know the effect it will cause in the maturity value.
- The calculator can be also set to display the maturity value based on monthly or yearly investments.
- If all details are correct the sukanya samriddhi interest calculator can display the accurate maturity value.
- There are minimal chances of mistakes in calculating the maturity value if the calculations are done manually in sukanya samriddhi interest calculator
- You can change the investment amount at any time and can get accurate assumptions of the maturity value with the new investment plans.
Limitations of Sukanya Samriddhi Account Calculator
Although the sukanya samriddhi account calculator has many benefits & advantages it has some limitations also. These are listed below:
- If the configuration of the calculator nor properly done, it can provide values that are incorrect.
- The calculator doesn’t limit the amount of investment. As per the government guidelines, 1.5 lakh is the limit. But even if you add the value exceeding the limit it will still calculate the maturity level.
- The interest rate need to be added manually every time it is changed because the calculator is configured manually.