How much will you get by depositing ₹5,000 per month in Sukanya Samriddhi Yojana? Complete mathematics of savings of 15 years and maturity at 21 years

Sukanya Samriddhi Yojana (SSY), launched by the Government of India under the ‘Beti Bachao, Beti Padhao’ campaign, has today become the most popular means for parents across the country to secure the expenses of their daughter’s higher education and marriage. In the current financial year 2026, the Central Government will work on this scheme. 8.2% annual interest rate FD rates offered by all small savings schemes (e.g. 7.1% of PPF) and FD rates of major public and private banks.

The biggest feature of Sukanya Samriddhi Yojana is its long term compounding cycle and EEE (Exempt-Exempt-Exempt) Have tax status. This means that the amount deposited in it gets tax exemption under Section 80C of Income Tax, the interest earned every year is completely tax-free and not even ₹ 1 tax has to be paid on the entire maturity amount received after 21 years.

If you open a Sukanya account between the birth of your daughter till she turns 10 and save ₹5,000 every month, the financial breakdown for 15 years of investment and 21 years of maturity is as follows:

• Monthly Deposit Amount: ₹5,000

• Annual Deposit Amount: ₹60,000

• Total Deposit Period: 15 years

• Total Principal Amount: ₹60,000 × 15 = ₹9,00,000 (nine lakh rupees)

• Deposits in last 6 years (from 16th to 21st year): ₹0 (No new deposit required)

• Total estimated interest earned at the rate of 8.2%: About ₹20,19,000 (Twenty lakh nineteen thousand rupees)

• Total fund to be received on maturity of 21 years: ₹29,19,000 (Twenty nine lakh nineteen thousand rupees)

(Note: This calculation has been done assuming the current annual compounding interest rate of 8.2% remains constant throughout the tenure. The government reviews interest rates every quarter).

The biggest advantage of Sukanya Samriddhi Yojana is its ‘Interest on Interest’ i.e. the magic of compound interest. As per the rules, installments have to be deposited only for the first 15 years from the date of account opening. From the 16th year to the 21st year, the parent does not have to deposit a single rupee, but the entire fund deposited for 15 years continues to grow at the rate of 8.2% for the next 6 years.

It is clear from the table that your total balance in the 15th year is around ₹18 lakh, which increases to more than ₹29 lakh in the 21st year without depositing any additional money.

This question often arises in the minds of parents whether it is mandatory to wait till 21 years for their daughter’s education? The scheme rules provide flexibility to:

• 50% withdrawal for higher education: When the daughter completes 18 years of age or passes 10th class, up to 50% of the total balance at the end of the previous financial year can be withdrawn to pay the fees for higher education in college or university.

• Account closure on marriage: If the daughter gets married after the age of 18 years, then at the time of marriage, the entire money from the account can be finally withdrawn and the account can be closed prematurely.

• Minimum and maximum deposit limits: A minimum of ₹250 and a maximum of ₹1,50,000 can be deposited into the account during a financial year.

It is very easy to open a Sukanya account in Lucknow, the capital of Uttar Pradesh, Kanpur, Varanasi, Prayagraj, Delhi, Mumbai, Patna or any city and town of the country. This account can be opened in any nearest post office or branch of authorized government/private bank (like SBI, PNB, BOB, HDFC, ICICI).

Documents required to open account:

1. Birth certificate of daughter

2. PAN card and Aadhar card of parent or legal guardian

3. Residence certificate and passport size photo

4. Minimum amount of ₹250 for first installment

This account can be opened in the name of maximum 2 daughters in a family (in case of twins or triplets, there is a special discount for the third account).