Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme that was launched in 2015 under the Beti Bachao Beti Padhao campaign. The aim of this scheme is to encourage parents to save and invest in their daughter’s education and marriage expenses. The SSY scheme allows for tax-free investment with an attractive interest rate of 7.6% at present. The scheme provides a considerable corpus and good returns at the time of maturity, which makes it an ideal investment option for parents.
The sukanya samriddhi yojana calculator is an online tool that can be used to estimate the returns on investment in the scheme. The calculator considers factors such as the deposit amount, interest earned, and the tenure of the investment to give you an idea of the future value of your investment.
Investing in SSY can help you accumulate a significant corpus of ₹63 lakh when your girl turns 21. Here’s how.
Investing in Sukanya Samriddhi Yojana
As per the scheme rules, a parent or guardian can open an SSY account in the name of the girl child who is below the age of 10 years. One can open only one account per girl child, and a maximum of two accounts per family, provided there is only one daughter or two daughters.
The minimum amount of investment in SSY is ₹250, and the maximum amount is ₹1.5 lakhs per financial year. You can deposit the amount either as a lump sum or make periodic deposits throughout the financial year until the completion of 15 years from the date of opening the account.
For example, if you invest ₹1.5 lakh annually from the start of the account till the completion of 15 years, you will have invested a total of ₹22.5 lakhs.
Now, let’s use the SSY calculator to estimate the returns you can expect from investing this amount.
Using the SSY Calculator
The SSY calculator can be accessed online, and it is an ideal tool to calculate the future value of your investment. Here is how to use the calculator:
- Enter the amount invested: In this case, enter ₹22.5 lakhs.
- Enter the rate of interest: As of now, the interest rate for SSY is 7.6%.
- Enter the investment duration: In this case, the duration of the investment is 15 years.
Upon entering these values, the calculator will estimate the maturity value of your investment, which in this case is ₹63.25 lakhs.
Comparing SSY with other investment options
Although there are several other investment options available in India, SSY continues to be a popular choice for parents because of its unique features such as tax-free returns, government-backed security, and the highest rate of interest among schemes designed for small savings. Let’s compare SSY with other popular investment options and see how it fairs.
Fixed Deposit Calculator
Fixed Deposit(FD) is one of the most common investment options for individuals in India. The interest rates on FDs have been falling, and the current rate is around 5.5%. This low rate of interest and the taxation of the returns decrease the overall return on investment. Hence, investing in FDs for the long-term is not ideal.
As per the fixed deposit calculator, if you invested ₹1.5 lakhs per year for 15 years, the maturity value would be ₹38 lakhs based on a 5.5% interest rate. So, by investing in SSY, you could earn ₹25.25 lakhs more than investing in FDs.
Conclusion:
Overall, investing in SSY can provide a significant corpus, which can be used for the girl child’s education and marriage expenses. Utilizing the SSY calculator can provide an accurate estimate of the returns you can expect from your investment. We advise investors to perform their due diligence and assess all the risks and benefits of different investment options before investing. Remember, investing in financial markets carries risks, and past performance does not guarantee future success.
Summary:
Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme that can help you accumulate a significant corpus for your daughter’s education and marriage expenses. The SSY calculator is an online tool that can be used to estimate the returns on investment in the scheme. Investing in Sukanya Samriddhi Yojana can help you accumulate a corpus of ₹63 lakhs when your girl turns 21. Comparing SSY with other popular investment options such as fixed deposits, SSY provides a higher return on investment. However, investors must weigh the pros and cons of investing in any financial market before making any investment decisions.
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