What is the SSY account?
Sukanya Samriddhi Yojana or SSY account is a Government of India-backed small deposit scheme for a girl child. The SSY account is opened anytime after the birth of the girl child until she turns 10 years old. You may open the SSY account at the post office or any branch of a commercial bank. You may open the Sukanya Samriddhi Yojana account with a minimum initial deposit of just Rs 250. The maximum amount you can deposit in the SSY account is Rs 1.5 lakh per financial year. The SSY account is opened in the name of a girl child to give her a bright future. The money can be used for higher education or the marriage expenses of a girl child. The SSY account is operative for 21 years from the date of opening the account, or until the girl child’s marriage after 18. You could make partial withdrawals up to 50% of the balance amount for higher education expenses of the girl child. The SSY account currently offers an interest rate of 7.6% p.a. for the April to June quarter of the year 2021. The amount deposited in the SSY account is eligible for a tax deduction up to Rs 1.5 lakh per year under Section 80C of the Income Tax Act. The interest you earn on the deposit and the amount withdrawn at maturity are tax-free.
What is the SSY Calculator?
The SSY Calculator is a utility tool that calculates the interest earned and the maturity amount on the SSY account. If you satisfy the eligibility criteria for the SSY account, use the calculator and determine the maturity value of your investment. The SSY Calculator consists of a formula box, where you enter the amount of deposit, age of the girl child up to 10 years, and the starting year of the investment. The calculator shows the total interest and maturity amount.
How does SSY Calculators work?
You must enter the amount of deposit, the age of the girl child, and the year in which you start the investment. The SSY calculator will show you the interest earned on the investment and the maturity amount. Let us use the mathematical formula: A = P(1+r/n)^nt P = Initial Deposit r = Rate of interest n = Number of years the interest compounds t = Number of years A = Amount at maturity For example, you deposit Rs 1,50,000 each year for 15 years in the SSY account. The SSY account offers an interest rate of 7.6% p.a. Let us calculate the maturity amount after 21 years. (Note: The contribution period for the SSY account is 15 years, while the maturity period is 21 years). The table below shows the calculations. If you deposit Rs 1,50,000 each year for 15 years in the SSY account, you will get Rs 42.48 lakh after 15 years. You will continue with the SSY account until the end of the maturity period (21 years) without any further deposits. You will get Rs 65.93 lakh at maturity.
How to use ClearTax SSY Calculators?
The ClearTax SSY Calculator shows you the interest you have earned and the maturity amount on the SSY account. To use the SSY Calculator:
- You must enter the deposit amount up to Rs 1.5 lakh a year.
- Enter the age of the girl child in years. You can enter a maximum age of 10 years.
- Use the slider and select the investment starting year.
- You then select the duration of the investment.
- The ClearTax SSY Calculator shows you the age of a girl child at the maturity of the SSY account. It also shows you the maturity year of the investment, the interest earned, and the maturity amount.
Benefits of ClearTax SSY Calculator
- The ClearTax SSY Calculator shows the interest you have earned and also the maturity amount on the SSY account in seconds.
- The SSY account is an excellent investment to save tax. It also offers one of the highest interest rates among fixed-income investments. The ClearTax SSY Calculator shows you how the SSY account may help you achieve financial goals such as a daughter’s marriage and higher education.
- You may use the ClearTax SSY Calculator to determine the amount you must invest for a girl child’s education and marriage.
- The ClearTax SSY Calculator is an easy-to-use calculator. It may be used from the comfort of your home or anywhere.
FAQs on the ClearTax SSY Calculator
Why use the ClearTax SSY Calculator?
The ClearTax SSY Calculator calculates the maturity amount of the SSY account in seconds. You just have to enter the requisite information. The calculator calculates the interest you earn on the SSY account as per the latest interest rates set by the government.
How does the ClearTax SSY Calculator help me?
The ClearTax SSY Calculator helps you invest for your girl child’s higher education and marriage. You can easily set aside the amount you need for the investment and reach your financial goals. The investment has a sovereign guarantee, offers a high-interest rate, and has tax benefits.
How does the ClearTax SSY Calculator calculate the maturity amount of the SSY account?
You must enter the age of the girl child, the investment amount, the starting year of the investment, and the period for which you would invest in the SSY account. The SSY Calculator allows you to choose a maximum time for the investment for up to 15 years. You would continue with the investment until maturity without any further deposits. The calculator shows you the maturity amount after 21 years.