Sukanya Samriddhi Yojana Calculator
Calculate your Sukanya Samriddhi Yojana
What is Sukanya Samriddhi Yojana Scheme?
The Sukanya Samriddhi Yojana (SSY) was initiated by the Government of India as a part of its “Beti Bachao Beti Padhao” campaign. It is a high-yielding, tax-saving investment instrument whose core objective is to secure the future of the girl child. The SSY has a tenure of 21 years, and the current interest rate is 7.6% p.a. The minimum investment amount is ₹250 and the maximum contribution can be ₹1.5 lakh p.a. The maturity period is 21 years from the date of opening of the account or till the marriage of the girl after she attains the age of 18 years. Investments made towards the scheme can be used for the girl child’s marriage and education. Interest is not payable once the duration of the scheme is completed or if the girl becomes a non-resident Indian (NRI) or a non-citizen. SSY accounts can be opened at banks and post offices. Under Section 80C of the Income Tax Act, 1961, tax benefits of up to ₹1.5 lakh are provided for contributions made towards the scheme.
What is the Sukanya Samriddhi Yojana Calculator?
SSY Calculator uses the simple mathematical principle of compounding to give you an output which is an estimate of the amount you will receive on maturity of SSY scheme (i.e. 21 years), subject to meeting the eligibility criteria and providing accurate input details such as:
- Age of the girl child
- Amount to be deposited
- Initial year of investment
Key highlights of the scheme
- It is mandatory for individuals to make at least one contribution in a year until the completion of 14 years.
- The calculator will assume that the same amount of deposit is made on a yearly basis.
- No deposits are required to be made between year 15 and year 21.
- However, individuals will earn interest on the previous contributions during this period.
- The calculator also considers the interest that is generated when providing the final amount.
An illustrative example of how a SSY calculator works
Formula used to calculate the amount on maturity under the SSY scheme:
- A = Compound Interest
- P = Principal Amount
- r = Rate of Interest
- n = The number of times interest is compounded in a year
- nt = number of years
- Your girl child’s age in 2022 is 1 year.
- You deposit ₹1000/ year.
- Your commencement year is 2022.
- Year of maturity is 2043.
- Current SSY interest rate is 7.6%.
- Your cumulative investment is ₹15,000 and your interest is ₹28,954.
- Amount received on maturity is ₹43,954.
Frequently Asked Questions
What is the eligibility criteria of SSY?
The scheme is applicable for girl children. The parent or legal guardian can open an SSY account on behalf of a girl child until she reaches the age of 10. The girl child must be a resident of India. In a family, up to two accounts can be opened for two girls. A third SSY account can be opened in case of twin girls.
What are the tax benefits under SSY?
Under Section 80C of the Income Tax Act, 1961, tax benefits of up to ₹1.5 lakh are provided for contributions made towards the scheme. The interest amount that is generated is also exempt from tax. Tax benefits are also provided for the maturity amount or the withdrawal amount.
What are the advantages of the SSY calculator?
The calculator helps depositors know the exact amount you would receive on maturity under the SSY scheme. The calculator helps depositors with multiple iterations (free of charge) so that they can analyse their investment amount, investment intervals vs. the maturity amount to make a more informed decision. The SSY calculator can generate accurate results provided you’ve plugged in accurate data, besides saving your precious time.
What are the limitations of the SSY calculator?
If the mathematical formula/algorithm is incorrectly fed, the output would be inaccurate and misleading to the depositor.
What are the typical modes of deposits towards the SSY scheme?
Deposits towards the SSY account can be made via online transfer, demand draft, cheque or cash.
What are the documents required to open an SSY account?
- SSY account opening form
- Birth certificate of the girl child
- ID proof and address proof of the depositor
- Medical certificate in case multiple children are born under one order of birth
- Any other documents that are requested by the bank or post office
What are the details that are recorded in the passbook?
- Upon activation of the SSY account, you will receive a passbook.
- The passbook mentions the date of opening the account, the date of birth of the girl child, the account number, the name, the address of the account holder and the amount that has been deposited.
- The passbook must be submitted to the bank or post office at the time of depositing money into the account, receiving the interest payment, and closing the account.
What happens if I deposit more or less than the threshold limit as per the SSY?
- If the depositor fails to pay the minimum amount of ₹250 in any given financial year, the account will be considered as default.
- However, the account can be made active by paying a fine of ₹50.
- If the deposit is in excess of the maximum threshold limit of ₹1.5 lakh, no interest is generated on the excess. The depositor can withdraw the excess amount at any time.
What are the SSY withdrawal rules?
Upon maturity, the entire amount in the SSY account including the interest can be withdrawn by the girl child. The following documents need to be submitted:
- Application form for the withdrawal of the amount
- ID proof
- Address proof
- Citizenship documents
- Withdrawal is allowed for the purposes of higher education if the girl child has attained the age of 18 years and has completed 10th standard.
- However, the money must be used for the fee or any other charges that are levied at the time of admission.
- Documents such as admission to the university or college as well as the fee receipt must be submitted when applying for the withdrawal.
- The maximum amount that can be withdrawn is 50% of the amount that is available in the previous year.
- The amount can be withdrawn in 5 instalments or in a lump sum.
What are the rules for premature withdrawal from an SSY account?
- Once the girl attains the age of 18 years old and is getting married, premature withdrawal from the SSY is allowed.
- However, the application must be submitted at least one month before the marriage and 3 months after the marriage to avail the benefit.
- Documents that determine the age of the girl child must also be provided.
- In case the girl child becomes a non-citizen or a non-resident, the account will be deemed as closed. Information about any such change in status must be provided by the guardian or the girl child within one month from the change in status.
- In the case of death of the girl child, the balance that is available in the account can be withdrawn by the guardian. However, the death certificate must be submitted.
- If the account has been opened for 5 years and more, and the bank or post office feels that the continuation of the account is causing difficulties to the girl child, the guardian or girl child can opt for premature closure.
- Permission to close the account will be permitted for other reasons as well, but the interest that is earned from the contributions will be the same as the interest rates that are provided by post offices.
Is the SSY account transferable?
- Yes, an SSY account can be transferred from post offices to banks and vice versa anywhere within India.
- No charges will be levied for the transfer of the account.
- However, a proof for change in residence must be produced. In case no proof is produced, a ₹100 charge will be levied.
Can a non-resident Indian avail the SSY?
The scheme is not applicable for NRIs.
Can I convert my normal bank deposit account to an SSY account?
Conversion of such accounts is not allowed.
This calculator is meant to be used for indicative purposes only. It is designed to assist you in determining the appropriate amount of prospective investments. This calculator alone is not sufficient and shouldn’t be used for the development or implementation of any investment strategy. Upstox does not take the responsibility/liability nor does it undertake the authenticity of the figures calculated therein. Upstox makes no warranty about the accuracy of the calculators/reckoners. The examples do not claim to represent the performance of any security or investments. In view of the individual nature of tax consequences, each investor is advised to consult his/her own professional tax advisor before making any investment decisions on the basis of the results provided through the use of this calculator.