Sukanya Samriddhi Yojana: Invest Rs 1200 and get Rs 4.74 lakh from interest alone; check scheme details here

 

Sukanya Samriddhi Yojana: By depositing ₹ 1,200 every month in Sukanya Samriddhi Yojana, a good fund can be prepared for the future of the daughter. Monthly savings of ₹ 1,200 can generate interest of about ₹ 4.74 lakh at an interest rate of 8.2%. In SSY, money has to be deposited only for 15 years and after that, interest continues to be received on the deposited amount for 6 years. However, the interest rate is changed by the government from time to time, so the actual maturity amount may differ.

Sukanya Samriddhi Yojana: You don’t need a large sum to start saving for your daughter’s future. If you can invest just ₹1,200 per month, you can gradually build a substantial fund under the Sukanya Samriddhi Yojana (SSY). This way, you’ll accumulate ₹14,400 annually. If you invest consistently for 15 years, you’ll end up with a total of ₹216,000. After that, you won’t need to make any new deposits until the 21-year term is over, but interest will continue to accrue.

This means that starting with a small amount can create a substantial fund for your daughter over the long term. Assuming a consistent 8.2% annual interest rate, saving ₹1,200 per month can generate a corpus of approximately ₹6.90 lakh, with approximately ₹4.74 lakh of this amount coming from interest. Keep in mind that the government may change the SSY interest rate from time to time, so the actual amount may vary.

₹1,200 per month: Complete calculation

If you deposit ₹1,200 per month:
Monthly investment: ₹1,200
Annual investment: ₹14,400
Total investment in 15 years: ₹2,16,000
Estimated interest: Around ₹4,74,000
Estimated fund after 21 years: Around ₹6,90,000

This estimate is based on monthly investment and uniform interest rate of 8.2%.

Deposits will only be required for 15 years.

You don’t need to make monthly deposits in SSY for 21 years. In this example, you would deposit ₹1,200 per month for 15 years. After that, you wouldn’t make any new investments for the next six years, but interest would continue to accrue to the account. This is the long-term benefit. The initial amount may seem small, but over time, the fund grows as interest on interest accrues.

How will you create a fund of ₹6.90 lakh for your daughter?

Suppose you opened an SSY account around the time of your daughter’s birth and started depositing ₹1,200 every month. Your total investment over 15 years would be ₹2.16 lakh. After that, you would stop depositing. If the interest rate remains at 8.2% throughout, the estimated corpus at the end of the 21-year period could be around ₹6.90 lakh. This means that you can earn around ₹4.74 lakh in additional interest compared to the amount you deposited.

Who can open an SSY account?

A Sukanya Samriddhi Account can be opened by a parent or legal guardian in the name of a daughter under the age of 10. A minimum annual deposit of ₹250 and a maximum of ₹1.50 lakh can be made under the scheme. Therefore, starting with ₹1,200 per month can be convenient even for families who cannot afford to save a large sum every month.

Withdrawal rules apply.

This scheme does not allow for full withdrawal. Partial withdrawals are allowed for higher education after the daughter turns 18, as per the rules. The full amount is available upon completion of the scheme’s stipulated term. By leveraging small savings, long-term savings, and compounding, you can create an estimated corpus of approximately ₹6.90 lakh for your daughter’s future with just ₹1,200 per month.