Sukanya Samriddhi Yojana: If you deposit ₹ 1 lakh every year in your daughter’s name, you will get ₹ 46.8 lakh, understand the complete calculation.

Sukanya Samriddhi Yojana (SSY) launched by the Central Government under the ‘Beti Bachao, Beti Padhao’ campaign is one of the most popular and safe small savings schemes in the country. Operated by post offices and authorized nationalized banks, this account can be opened in the name of girl children below 10 years of age by their parents or legal guardians. The main objective of this scheme is to provide a huge guaranteed financial support to the daughter at the time of her higher education, career and marriage. Currently, the annual interest rate of 8.2% is being offered on this scheme by the Central Government, which is higher than all other small savings schemes of the government like PPF and National Savings Certificate (NSC). If a parent makes regular savings of ₹ 1 lakh every year in the name of his daughter, then at the maturity of 21 years, a huge fund of about ₹ 47 lakh is prepared in the hands of the daughter.

The structure of Sukanya Samriddhi Yojana is very simple to understand. Total tenure of this account 21 years It is of Rs., but the account holder has to make only the initial Contribution has to be deposited only for 15 years. No new investment has to be made in the last 6 years (from 16th year to 21st year), but the interest fixed by the government on the entire accumulated capital keeps getting added in the form of compound interest.

Official mathematics of interest and maturity on ₹1 lakh annual investment:

• Annual Contribution: ₹1,00,000 per year

• Total investment period (Deposit Period): 15 years

• Total Principal Deposited: ₹15,00,000 (₹1 lakh × 15 years)

• Applicable Annual Interest Rate: 8.2% per annum (compounded annually)

• Maturity Period of Account: 21 years

• Total Interest Earned in 21 Years: About ₹31,82,600

• Total Maturity Amount after 21 years: ₹15,00,000 + ₹31,82,600 = Approximately ₹46,82,600 (Approximately ₹46.83 Lakh)

This calculation shows that the net interest earned on the principal amount of ₹15 lakh deposited by you is more than double the principal amount. This power of compound interest easily fulfills the higher education fees or other big dreams of the daughter by the time she reaches 21 years of age.

How the fund grows continuously over the scheme’s 15-year investment and 21-year maturity can be understood from the table below:

Sukanya Samriddhi Yojana under Income Tax Act ‘Exempt-Exempt-Exempt’ (EEE) Has got special status. This means that there is no tax on all three stages of investment in the scheme:

1. Rebate on investment: Under Section 80C, the benefit of tax deduction is available on investments up to ₹ 1.5 lakh deposited every financial year.

2. Rebate on interest: No tax or TDS is deducted on the 8.2% interest credited to the account every year.

3. Discount on maturity: The entire lump sum maturity amount of ₹46.83 lakh received after 21 years is 100% tax-free.

If there is an urgent need of money for the daughter’s higher education, the account does not remain completely locked. Clear rules for partial withdrawal have been fixed in the scheme:

• 50% withdrawal for higher education: When the daughter completes 18 years of age or passes class 10th, a maximum of 50 per cent of the total balance at the end of the previous financial year can be withdrawn for her college admission or tuition fees.

• Closing account at the time of marriage: When the daughter’s age is 18 years or more and her marriage is fixed, the maturity amount can be obtained by giving a marriage affidavit 1 month before or 3 months after the marriage date and closing the account completely. Withdrawal is not allowed on the basis of marriage before the age of 18 years.

The rules for opening this account are very simple:

• Eligibility: The age of the girl child should be from birth to maximum 10 years. This account can be opened only for a maximum of two daughters in a family (special relaxation applies in case of twins or triplets born together).

• Minimum and maximum investment limits: A minimum of ₹250 and a maximum of ₹1,50,000 can be deposited in a financial year.

• Required Documents:

  
  

  • Birth certificate of daughter.

  • Identity card and residence certificate of parents or legal guardian (Voter ID, Passport, Driving License etc.).

  • Parent’s PAN card.

  • Passport size photographs of daughter and guardian.

Parents can easily open this account by visiting their nearest post office or branch of any authorized public or private commercial bank (like SBI, PNB, Bank of Baroda, ICICI Bank etc.) and filling the form. Once the required documents are submitted along with the form and the first check or cash deposit of ₹1 lakh, the account is activated and the passbook is issued. Money can also be transferred online every year sitting at home through Net Banking or IPPB Mobile Banking.