Saving for your child’s future education and marriage expenses is a top priority for many parents. The Sukanya Samriddhi Yojana (SSY) is a popular government scheme designed specifically for this purpose. It offers attractive interest rates and tax benefits, making it an ideal savings option for parents of young girls. One of the key factors that determine the overall benefits of this scheme is the maturity value, which represents the total amount you’ll receive at the end of the investment period.
How to calculate maturity value of Sukanya Samriddhi Yojana?
The maturity value of Sukanya Samriddhi Yojana can be calculated using a simple formula that takes into account the initial deposit, annual contributions, and the prevailing interest rate. To calculate the maturity value, you can use the following formula:
Maturity Value = P*(1+R)^N
Where:
– P = Principal amount (initial deposit)
– R = Annual interest rate (divided by 100)
– N = Number of years
For example, if you have made an initial deposit of Rs. 1,00,000 in your daughter’s SSY account, and you are making annual contributions of Rs. 10,000 at an interest rate of 7.6% compounded annually, the maturity value after 21 years will be:
Maturity Value = Rs. 1,00,000*(1+0.076)^21 = Rs. 4,76,706.85
This means that you will receive Rs. 4,76,706.85 at the end of the 21-year investment period if you continue to make annual contributions and the interest rate remains constant.
Related FAQs
1. Can I withdraw money from my daughter’s SSY account before maturity?
Yes, partial withdrawals are allowed after the account holder reaches 18 years of age for specified purposes like higher education or marriage.
2. Is the interest earned on SSY taxable?
No, the interest earned on Sukanya Samriddhi Yojana is exempt from income tax under Section 80C of the Income Tax Act.
3. Can I transfer my daughter’s SSY account from one bank to another?
Yes, you can easily transfer the SSY account from one bank or post office to another.
4. What happens if I miss a yearly contribution for my daughter’s SSY account?
If you miss making a yearly contribution, you would need to pay a penalty of Rs. 50 per year to regularize the account.
5. Can a premature closure of SSY account be done?
A premature closure is allowed only in case of the death of the account holder.
6. Is there a limit on the number of SSY accounts one can open?
Parents can open only one SSY account for each girl child, with a maximum of two accounts for two girl children.
7. What is the minimum and maximum deposit limit for SSY account?
The minimum deposit limit for an SSY account is Rs. 250, and the maximum deposit limit is Rs. 1,50,000 in a financial year.
8. Can a Non-Resident Indian (NRI) open an SSY account for their daughter?
No, NRIs are not eligible to open an SSY account for their children.
9. How is the interest calculated on SSY account?
The interest on an SSY account is calculated on the minimum balance between the 10th and the end of the month.
10. What documents are required to open an SSY account?
You would need to submit your daughter’s birth certificate, address proof, and identity proof along with the application form to open an SSY account.
11. Can I extend the maturity period of an SSY account?
No, the maturity period of an SSY account is fixed at 21 years.
12. What happens to the SSY account if the daughter gets married before the maturity period?
In case of the marriage of the account holder before the maturity period, the account will be closed, and the balance will be paid out.
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