Sukanya Samriddhi Yojana or SSY account is a Government of India-backed small deposit scheme for a girl child. The SSY account can be 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 8.2% p.a. 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 The interest you earn on the deposit and the amount withdrawn at maturity are tax-free.
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.
You must enter the amount of the 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
where,
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.
The ClearTax SSY Calculator shows you the interest you have earned and the maturity amount on the SSY account. To use the SSY Calculator: