The Sukanya Samriddhi Yojana (SSY) is a government scheme for securing the Girl Child’s financial security. Initiated under the Beti Bachao Beti Padhao scheme, this encourages parents to save a bit regularly for their daughters, be it for their study, marriage, or any other major life expenses.
Saving systematically, say about Rs 12,500 annually, can make a big corpus over time, thanks to the interstations being rather high and also the compelling aspect of compounding earned as per that rate.
What is Sukanya Samriddhi Yojana (SSY)?
SSY being a deposit scheme for the long term, it caters to girl children who are below 10 years of age. The account can be opened in the child’s name by either parent or a guardian, who will then deposit a minimum of ₹1,000 annually with a limit of ₹1.5 lakh per annum.
It is a guaranteed return-bearing scheme with interest compounded annually. It further offers tax benefits under Section 80C of the Income Tax Act. The account matures after 21 years from the date of opening, by which time a handsome corpus will be available for any emergency requirement of the daughter.
How Much Does ₹12,500 Annually Grow to?
Assuming deposits are kept at a fixed ₹12,500 per annum in the SSY account, at about 8.1% per cent per annum interest rate at present, the corpus grows into quite a sizeable amount at maturity of 21 years. During the first 15 years, contributions are made, and interest is accumulated through to maturity.
Sample Growth Projection
| Year | Annual Contribution (₹) | Total Contribution (₹) | Accumulated Interest (₹) | Approx. Maturity Value (₹) |
|---|---|---|---|---|
| 1 | 12,500 | 12,500 | 1,013 | 13,513 |
| 5 | 12,500 | 62,500 | 28,957 | 91,457 |
| 10 | 12,500 | 1,25,000 | 73,000 | 1,98,000 |
| 15 | 12,500 | 1,87,500 | 2,00,000 | 3,87,500 |
| 21 | 12,500 | 2,62,500 | 40,37,500 | 6,70,0000 |
Thus, as seen above, the annual investment of ₹12,500 grows to approximately ₹67 lakh at the end of 21 years, providing a solid financial foundation for your daughter.
Benefits of SSY Investment
Sukanya Samriddhi Scheme is considered a very safe investment that few benefits. It guarantees returns, tax benefits, and instills financial discipline. Parents can stage higher education or marriage for their daughter without worrying about market fluctuations. Apart from instilling the habit of long-term savings, it also provides an income for the girl child in adulthood.
Conclusion
An investment of ₹12,500 per annum in Sukanya Samriddhi Yojana is simple and yet powerful method of accumulating a large corpus for the daughter. With attractive interest rates, government backing, and tax benefits, SSY provides a very secure and disciplined method of creating wealth. Investing early and regularly can