Sukanya Samriddhi Yojana Calculator

Another best service provided by this scheme is tax benefit on both investment money and interest accumulated. It is a long-term scheme that yields high returns based on active investment commitment from the investor.

Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana (from now on termed as SSY) is national-level small savings account scheme for the female child; it was initiated by the Government of India, which is the part of Beti Bachao Beti PadhaoCampaign. It is a girl child prosperity scheme provided with income tax benefits with a reasonable interest rate by the government. The main aim of this scheme is financial security for the girl child, which aids them with proper education and her marriage expenses. 

This scheme allows the guardians (parents or any other legal guardian) of a girl child to open the SSY account in any nearby post office or any commercial bank. They can open the account by choosing suitable investment plans and tenure at the interest rate of 7.6% per annum (current interest rate fixed by the government). 

Eligibility and Notable Features

The following are the key features of SSY. They are:

• Age: The age of a girl should be 0-10 years 
• Status: Any Indian resident girl child
• Lock-in period for maturity: 21 years. Investors have to make investments until 15 years from the date of account opening after the 15^thyear,investors can choose not to make investments.

• Interest rate: The interest rate (7.6% pa) (change every quarterly by the GOT) as mentioned above is calculated and compounded on a yearly basis. Interest will be added to the principal amount at the end of each financial year, and it is earned without tax.
• Who is authorized to open the account: Only one account can be opened for one girl by her legal guardian in any commercial bank or post office. The account can be opened in the name of a female child who is below the age of 10 years, and the guardian maintains it until she attains the age of majority (18 years). Under this scheme maximum of two accounts can be allowed to open for only two girl children in a family, and an exception to this rule is the case of having twins or triplets girl childbirths, more than two account openings are allowed. 
• Deposits: The initial deposit amount required to open the account is Rs. 250. The minimum amount to deposit in an account is Rs. 250, and the maximum is the multiple of Rs.50, i.e., Rs. 1.50 lakhs in a financial year. These deposits can be made at a time in a lump sum or can be made in a regular installment. The deposits can be continued maximum of up to 15 years from the date of account opening. Suppose in case the minimum amount is not credited into the account in any financial year. In that case, the account will become a defaulted account, and it can be resumed at any time before the competition of said 15 years by depositing Rs. 250 for defaulted years along with the penalty RS.50.
• Tax: The deposits made into the account will be benefited from the Income-tax under section 80C of the Income Tax Act, 1961.
• Maturity amount withdrawal: The maturity amount can be withdrawn from the account in a lump sum or installments when the girl attains 18 years of age.
• Premature closure:  The account can be closed after five years from the opening of the account, which is before the end of the tenure. However, premature closure is allowed only on some necessary grounds, i.e., on the death of the account holder/ on the death of the guardian/ on any medical emergencies/ if the citizenship status of a girl changes from an Indian resident.
• Account closing: The account will be closed automatically on the maturity date. In addition, the account can be closed after 21 years from the date of opening/ on attaining the majority/ at the time of the marriage/ for higher education (can withdraw 50% on the total amount in the preceding financial year).
• The account is transferable to any bank or any post office in India. 
• An adopted girl child can also be eligible to open the account.

Documents required

In order to open an SSY account/ to use the SSY calculator, the flowing documents need to be submitted at the time of opening the account. They are:

• Birth certificate of a female child,
• Depositors (guardian) identity proof (Aadhar card/ pan card/ driving license/ passport/ ration card). 
• Address proof of the depositor (Aadhar card/ pan card/ driving license/ passport/ ration card/electricity bill). 
• Medical report in case of twins/ triplets birth in a single delivery.
• Withdrawal application form (if withdrawing).
• Any other documents requested by the concerned authority. 

Sukanya Samriddhi Yojana Calculator

Sukanya Samriddhi Yojana Calculator is a digital device that is available to customers in many web portals. The calculator will help to evaluate the figure of maturity amount that the depositor (guardian) invests at a fixed tenure and interest rate in the name of the girl child in order to save the money for her higher education or her marriage expenses. It is the best scheme provided by the GOI, which most people opted to secure their girl child’s future. 

How to use SSY Calculator?

We have learned about the SSY calculator. Now the question here is how to use the calculator? It is straightforward to use the calculator to calculate the SSY maturity amount as it is available in many web portals. Depositors have to enter the asked details to calculate. The following are the steps to be followed to use the calculator. They are:

• Visit any available website. (e.g.ssycalculator.com)
• Select the investment amount per year.
• Enter the girl's age.
• Enter the starting year.
• The calculator shows the maturity year and total maturity amount.
• The government will fix the interest rate (every quarter).

After entering the details, the calculator will generate the results, based on which the depositor can opt for the suitable investment.  

How does the SSY Calculator Work?

The calculator will generate the maturity amount at the interest rate fixed by the government (the current interest rate is 7.6% pa) for the seal in a period of 21 years. There is no investment made after the 15^th year to the 21^st year. The interest is calculated on the previous investments. We can understand it clearly by taking an example in a scenario wherein there is no withdrawal in one scenario. 

Scenario: Investment amount: 50,000 (yearly)

                        Rate of interest: 7.6% pa (current rate of interest fixed by the government)

                        Tenure: 15 years 

                        Girls age: 8 years 

                        Withdrawal: no

SSY Calculator calculates the maturity amount by using the compounding interest. The formula used by the SSY calculator is: 

A= P(+r/n) *n*t

Where, P= principal amount

            A= compound interest

            r= interest rate

            n= number of times the rate of interest compounds (in a year)

            t= tenure (investment years).

Benefits/Advantages of Calculator

• Depositors can calculate the maturity amount at their flexible timings.
• No chance of human errors
• Interest will be calculated on the latest SSY interest rate fixed by the government.
• No need to go to the post offices or banks to calculate manually,
• Helps to calculate maturity value easily,
• It can be used multiple times by entering various investment amounts,
• Provides accurate results
• Shows the exact maturity date and maturity amount
• It can be used comfortably from anywhere.

Tax Exclusion

Under the SSY scheme, investors are benefited from the tax exclusion. Under section 80C of the Income Tax Act, 1961, investors in SSY are excluded from the taxpaying. This tax exclusion is available up to Rs. 1.5 lakhs only, which is the maximum investment amount in SSY. The investors are benefited from the tax not only on investment amount but also on the accumulated interest and maturity amount. 

“Tax benefit is subject to changes in tax laws. Standard T&C apply.”

FAQ's