Sukanya Samriddhi: Rs.20,000 Investment, Interest Calculation

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Sukanya Samriddhi Yojana for the girl child is now becoming a preferred long term investment option which is a zero risk investment with returns 100% tax exempt. To open this account parents need to personally visit post office or 28 Indian banks authorized by Reserve Bank of India. The application process is very simple and requires account opening form to be filled and also provide birth certificate of the girl child, ID and address proof of the parents. Once account is opened after depositing the minimum amount of Rs.1000 by either cash/cheque/demand draft, passbook is provided bearing details of the investment.

The amount received after maturity can be used for your girl child’s marriage, education. Read in detail about the features of SSA.

Here is the table showing interest rate calculation for the investment of Rs. 20,000 done for 14 years i.e. Rs. 2,80,000. When the scheme matures after the girl child reaches the age of 21 years, the amount received would be Rs. 10,52,102 which is a 276% return on investment. In case someone wants premature withdrawal, then you need to wait until the girl child completes 18 years.

For return on investment calculation I’ve assumed 9.1% interest rate. This rate is set by the government for the financial year 2014-2015. However it might change every year and the same would be declared by the government similar to public provident fund. Check out 18 differences between SSA and PPF.

No. of Years Financial Year
SSA Opening Balance (INR)Investment/Year (INR)Interest Earned
(INR)
SSA Balance at Year End (INR)
12015-2016
2000020000182021820
22016-2017
2182020000380645626
32017-20184562620000597271598
42018-2019
7159820000833599933
52019-2020
999332000010914130847
62020-2021
1308472000013727164574
72021-20221645742000016796201370
82022-2023
2013702000020145241515
92023-2024
2415152000023798285313
102024-20252853132000027783333096
112025-2026
3330962000032132385228
122026-20273852282000036876442104
132027-2028
4421042000042051504155
142028-2029
5041552000047698571853
152029-2030571853052039623892
162030-2031
623892056774680666
172031-2032
680666061941742606
182032-2033
742606067577810184
192033-2034
810184073727883910
202034-2035883910080436964346
212035-2036
9643460877561052102

As per the scheme, you need to invest only for 14 years and thereafter no investments are required. Note that you can invest only in the multiples of Rs. 100. This means that you cannot invest amount such as Rs.15, 500, 20,500 etc. Also it’s not necessary to invest fixed amount every year. You can invest whatever amount you want in any month of the year. But note that the maximum investment limit is Rs. 1,50,000 in any financial year.

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