The scheme was launched in the year 2015 by the honourable Prime Minister under the Beti Bachao, Beti Padhao program. Sukanya Samriddhi Scheme is aimed to provide financial help to the girl child by allowing their parents to invest as low as Rs.250 per year. After the maturity of the scheme, the girl can withdraw the amount plus the interest earned for various purposes such as education, marriage, etc.
Parents can open the account for their girl child at the time of birth or before the girl is ten years old. Rs. 250 is the minimum amount to be invested and Rs. 150,000 is the maximum limit. The maturity period of the scheme is 21 years, and 15 years is provided for making deposits. Girls are allowed to access their accounts after they attained the age of ten years. The girl can use 50% of the amount accumulated after she completed the age of 18 years for education purposes.
The government fixes certain eligibility criteria to invest in the Sukanya Samriddhi scheme. These criteria include:
To overcome the hassle of standing in queues for hours to get any information related to the scheme, the provider has come up with a free and easy-to-use online tool known as the Post Office Sukanya Samriddhi Yojana calculator. This online calculator tool helps investors ascertains the returns they will get after the scheme's maturity.
Anyone can access it; all they need to do is fill the yearly investment amount, the girl child’s age and investment starting year. Once they enter the details, the calculator will show the total investment amount plus the interest gained over the period of time and the final amount they will receive after the scheme's maturity.
It is advised to use the calculator before making the investment because everyone has their requirements and needs. Knowing how much one will receive after the scheme's maturity in advance will help them make changes in the yearly investment amount as per their need. By using the calculator, one can also adjust the burden of investment on their pockets in advance.
The calculator is designed in such a way that anyone can use it very conveniently. Once the investors get through all the eligibility criteria required to make the investment in the scheme and find they eligible for the scheme, they can now fill in the information asked by the calculator. The calculator shows the final maturity amount based on the prevailing interest rate decided by the government. To use the calculator the investors, need to provide the below-mentioned information:
The investor will invest this amount in a given year under the scheme. The minimum amount necessary to invest yearly is 250 rupees, and the maximum limit is 150,000 rupees.
This scheme is exclusively made for the girl child. After entering the yearly investment amount, the investor needs to fill in the age of their girl. The maximum age allowed in the scheme is ten years.
At last, the investor needs to fill the year in which he plans to start investment. The scheme has a lock-in period of 21 years. The Post Office Sukanya Samriddhi calculator or the SSY calculator will show the final maturity amount that one gets after the completion of the scheme.
Once all the information is filled the calculator shows the final amount that the investor will receive after 21 years. If an investor is not satisfied with the result, they can make changes in the information filled in the calculator and it will show the new result.
The final amount that the calculator shows is based on the current interest rate on the scheme. As of April 2021, the interest rate on the Sukanya Samriddhi Yojana is 7.6% annually. The interest in the scheme is calculated on a compound basis. It means the calculator used the formula of compound interest, i.e., A = P(1+r/n)^nt
A = is the final amount to be received by the girl child after the maturity of the scheme
P = amount to be invested every year
R = the rate of interest
T = the number of years for which the amount is being invested. In the case of the SSY scheme, it is for 21 years.
In compound interest, the interest of one year is added to the principal amount to calculate the interest for the next year and so on. To understand this, let's go through an example.
Let's say Mrs Vrinda wants to invest in the SSY scheme for her girl child. She decided to invest Rs. 10,000 per year in the scheme. The girl child’s age is less than a year. The rate of interest is 7.6% per annum. After the first year of investment, her invested amount will be 10,000 plus 7.6% interest, equal to Rs. 10,760. Next year she again invested 10,000. Now the total amount she invested is Rs. 20,760, and she will receive interest on this amount only. It will keep on going this way until the 14th year of the investment. After the scheme's maturity, i.e., after 21 years, she will receive a total of Rs. 4,39,517.
The account can only be opened by the parents or the legal guardian of the girl child. They need to submit certain documents to start investing in the scheme. The documents include:
After successful verification of the above documents, the parents or legal guardians can start investing in the scheme for their girl child. Now they can use the calculator to ascertain how much they need to invest yearly to get them enough returns after the maturity of the scheme so that their requirements can be fulfilled. The returns will be based on the prevailing interest rate, the girl's age, and yearly invested amount. They can change the yearly investment amount to get the desired returns.
The Sukanya Samriddhi scheme is a great place to invest in the future well-being of the girl child. The scheme starts with as low as Rs. 250 per annum investment which can be further extended to Rs. 150,000 per annum. The scheme comes with a lock-in period of 21 years with some exceptions, and the interest is added on a compound basis, which increases the maturity amount by many folds.
There are many advantages attached to using the Post Office Sukanya Samriddhi Yojana Calculator. Some of them are:
All these features make this calculator very useful and convenient for people who are thinking of investing in the scheme to secure the future of their girl child.
Those who want to use the SSY calculator need to enter some information before they can ascertain the final amount they will receive after the scheme's maturity.
The calculator asks for the following information to calculate the final amount. The information includes:
This includes the amount that will be invested by the person every year till required by the scheme. The minimum is Rs. 250 and then in the multiple of Rs. 100. The maximum amount that can be invested in the scheme for a year is Rs.150,000.
The scheme is reserved for the girl child from the time of their birth up to 10 years. Parents or legal guardians need to enter the correct age of their girl child.
The scheme comes with a 21 years’ lock-in period. The calculator displays the maturity amount which one gets after a period of 21 years from the year the investment started.
Once all this information is entered, the calculator lets one know the exact amount receivable after 21 years.
There are few assumptions one needs to keep in mind while using this calculator for finding out the final maturity amount. The conditions are:
The final result from the calculator will be based on these assumptions. The investor needs to keep in mind these assumptions before investing.
Many benefits come with Sukanya Samriddhi Yojana. If a person is a parent or legal guardian of a girl child under the age of 10 years, they can invest in the scheme and secure the financial future of their girl child. Here is the list of benefits one can get by investing in Sukanya Samriddhi Yojana:
One can open the SSY account with a minimum deposit of rupees 250. This is done to make it accessible to a large section of society. The person will be required to make the investment for 15 years after the account opening. Failing to do so will lead to 'account default,' but one can again reactivate the account by paying the minimal penalty of Rs.50 for one year of default. This feature makes the scheme very flexible and affordable for everyone.
The SSY scheme comes with a lock-in period of 21 years. But one can withdraw 50% of the accumulated amount after the girl turned 18 years of age for the purpose of her education. The parents or legal guardian will be required to submit the proof of admission in order to make the withdrawal.
The scheme provides three tax benefits to the investor which makes it an excellent investment venue. The three tax benefits are:
*Tax benefit is subject to changes in tax laws*
The scheme provides attractive interest rates on the amount invested. As of April 2021, the interest rate is 7.6%. This is not it; the best part is that the interest is calculated on a compound basis. This means the returns are much higher than the simple interest basis.
Though the scheme has a maturity period of 21 years, the person only needs to invest for the first 15 years. They are not required to make any deposit for the next six years and will continue to gain interest on the amount invested.
The scheme has a lock-in period of 21 years, but there are few exceptions that are allowed to make premature withdrawals. The exception includes:
These exceptions are allowed because the purpose of the scheme is to strengthen the financial health of the girl child, not to put any burden on her. In case of premature withdrawal, the girl receives the amount invested plus the interest earned during that period.
The rates of SSY can be varied from one person to another. One needs to check the rates before making the investment. The premium rates of the SSY are based upon:
All the factors mentioned above can affect the premium rates of the scheme. One should use the Post Office Sukanya Samriddhi Yojana calculator for accurate premium rates.
A1. No, your account will not be closed but will be considered as a 'default account.' If you want to reactivate your account, you can do so by paying the penalty of rupees 50 for one year of payment lapse.
A2. Yes, in certain cases like terminal illness, death of the policyholder or the legal guardian of the girl child, for education and marriage of the girl. In these cases, premature withdrawal is allowed.
A3. The facility to open the Sukanya Samriddhi account is available at every post office across India. One can visit the post office and complete all the required formalities with the concerned official and can start investing in the scheme. The facility is also provided by banks such as HDFC, PNB, SBI, etc.
A4. The parents or the legal guardian of the girl child have the authority to manage the account until the maturity period. Still, if the girl wants, she can also operate her account once she attained the age of 10 years.
A5. No, as of now, the facility to open the SSY account lies only with Indian residents. The girl whose name the account is being opened must be an Indian citizen and should be less than the age of 10 years.
A6. One girl is allowed to have only one SSY account in her name. Parents or legal guardians can open a maximum of two accounts for each of their two-girl children. But there can be exceptions in the case of twins and triplets.
A7. Yes, the interest rates on the SSY scheme keep changing. One needs to check the latest interest rate before making the investment to avoid any confusion. As of April 2021, the interest rate is 7.6% per annum.
A8. To find the prevailing interest rate on the SSY scheme, one can use the Post Office Sukanya Samriddhi Yojana calculator, which will help you calculate the accurate maturity amount on the basis of current interest rates.
A9. Sukanya Samriddhi scheme was launched under Beti Bachao, Beti Padhao to secure the future of the girl child by allowing their parents or legal guardians to invest money annually on the name of their girl child and once the maturity of the scheme is completed, she can receive enough funds to manage her expenses.
A10. One can directly withdraw the money from the SSY account after providing the required documents to the concerned authority. The documents such as identity proof of the parents or legal guardian, identity proof of the girl child, resident proof, etc.
A11. Yes, it is allowed to transfer the SSY account from one bank to another and from one post office to another, keeping in mind, that girl may move from place to place for her education or other reasons.
A12. No, there is no such facility available as of now to take a loan against the SSY account. SSY scheme is specifically designed to secure the future of the girl child by providing her financial upliftment.
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