Sukanya Samriddhi Yojna

 ‘Beti Bachao, Beti Padhao’ Campaign is a very well known scheme launched by Prime Minister Narendra Modi on 22nd January 2015. The purpose of this scheme is to encourage parents of girl children for the future education and marriage expenses by building a fund. The account can be opened at any post office in India or branch of authorized commercial banks. As of 1st July 2019, SSY accounts offer 8.4% rate of interest. To calculate the returns A Sukanya Samriddhi Yojna calculator can be used.

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Who can use this calculator?

The eligibility criteria should be fulfilled first. SSY account can be opened by legal guardians of the girl child. The following conditions must be met:

  • The girl must be an Indian resident.
  • The girl shouldn’t be more than 10 years of age.
  • Up To two accounts can be opened in a family with two girl children.

The legal guardians need to submit the following documents so that they can start the deposit in the scheme:

  • Duly filled scheme opening document covering the basic personal details of the account holder and the girl child for whom the account is being opened.
  • Depositor’s identification documents and a valid address proof.
  • Medical certificate in the case of the birth of multiple children under a single birth order.
  • Additional documents requested by the concerned authority.

Individuals who meet the aforementioned prerequisites as well as have the supporting documents for the same are eligible for the scheme and hence can go ahead and use the SSY calculator online.

How does an SSY calculator help you?

Under section 80C of the Income Tax Act 1961, individuals can claim tax exemption up to Rs. 1.5 lakh from the amount contributed to SSY account. The interest income generated from investing is tax exempt as well. Owing to the high interest rate and the tax benefits it offers, SSY is one of the most popular ones. The tax benefits are extended to the maturity amount too.

The parents who have preferred SSY investment option need a tool to calculate the total amount on maturity that they would receive. The manual calculation is cumbersome and prone to errors. But Sukanya Samriddhi Calculator comes in handy. The calculator is free to use and produces error free output for multiple iterations.  According to the maturity amount the investor can adjust contributions to get the desired corpus. A minimum contribution has to be made each year to keep the account active.

Benefits of using SSY 

  • Shows you the year of maturity for your SSY account.
  • Displays the amount you receive upon maturity. 
  • Helps you plan your investment portfolio more effectively. 

How does it work?

The SSY offers an interest rate of 8.5% per annum. The tenure for maturity for the amount is 21 years. Most importantly individuals have to make minimum one contribution a year till 14 years are completed. The individual may choose to not make contributions in the account between a year and year 21 if they so wish. The previous investments made into the account will continue earning on the prevailing interest rate. The final amount is hence calculated based on net contribution plus interest earned.

Upon reaching maturity, the entire corpus can be withdrawn by the girl child.  The following documents need to be produced:

  • Withdrawal application form
  • ID proof and valid address proof
  • Citizenship documents 

The girl child needs to have cleared 10th standard and 18 years of age. The amount can be used only to meet fee and admission charges. Required document shall have to be submitted. If the girl is 18 and above premature withdrawal to meet marriage expenses is allowed. 

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Krishna Rath is a SEBI Registered Investment Adviser, and since 2015 has been educating netizens on investments and insurance. Krishna is a fee only SEBI RIA and is Odisha's first SEBI RIA. With background in IT, Krishna is changing the advisory space with new innovations in AdvisoryTech.

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