The Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme designed specifically for the financial security of a girl child. It offers an attractive interest rate, tax benefits, and the ability to accumulate a significant amount over time. Let’s calculate how you can accumulate ₹16 lakh in an SSY by saving just ₹100 per day.
Key Features of Sukanya Samriddhi Yojana (SSY)
Interest Rate: The current interest rate for SSY is 7.6% (as of October 2024), which is compounded annually.
Investment Period: You can contribute to the SSY until the girl turns 14, but the account continues to earn interest until the girl turns 21.
Minimum Contribution: The minimum deposit is ₹250 per year, and you can contribute up to ₹1.5 lakh per year.
Tax Benefits: Contributions to SSY are eligible for tax deductions under Section 80C of the Income Tax Act. The interest earned and the maturity amount are also tax-free.
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SSY Calculation: Saving ₹100 per Day
Let’s break down how saving ₹100 per day can help you accumulate ₹16 lakh over time in the Sukanya Samriddhi Account.
1. Daily Contribution:
₹100 per day = ₹3,000 per month (approximately)
₹3,000 per month is ₹36,000 annually.
2. How Long to Reach ₹16 Lakh?
The total amount accumulated depends on both the amount you deposit and the interest rate. Using the formula for compound interest, we can estimate the maturity amount.
Assuming you start saving ₹100 per day from your daughter’s birth (or from an early age), here’s an approximate breakdown of the growth.
Scenario 1: Saving ₹100/day for 14 years, Assuming 7.6% Interest Rate
Monthly contribution: ₹3,000
Annual contribution: ₹36,000
Investment period: 14 years (until the girl turns 14)
Interest rate: 7.6% (compounded annually)
Using a compound interest calculator:
Maturity Amount after 14 years: Roughly ₹16 lakh (depending on the exact interest rate and compounding frequency).
This calculation assumes you save ₹100 every day for 14 years. While the first 14 years will have the highest impact due to the compounding effect, the account will continue to grow for another 7 years (until the daughter turns 21), even if you stop contributing at 14.
Scenario 2: Increasing Deposits over Time
If you start with ₹100 per day but increase your contribution gradually as your income grows, you can reach ₹16 lakh much earlier.
By saving just ₹100 per day, you can accumulate ₹16 lakh in a Sukanya Samriddhi Account (SSY) by the time your daughter turns 21. This simple and consistent savings plan, combined with the power of compound interest, can provide significant financial support for your daughter’s future, whether for her education or marriage. With tax advantages and government backing, SSY is an excellent tool for long-term savings.
