Sukanya Samriddhi Yojana (SSY) is a savings scheme launched in 2015 as part of the Government’s Beti Bachao, Beti Padhao campaign. It allows parents or legal guardians to open a savings account for their girl child at any authorized commercial bank or India Post branch.

SSY accounts offer an interest rate of 8.2%, and an SSY calculator can help you estimate the returns based on the amount you invest and the duration of the scheme.

Who Can Use the SSY Calculator?

To use the SSY calculator, first, ensure you meet the scheme’s eligibility criteria. Legal guardians can open an SSY account for their girl child if certain conditions are fulfilled. In addition, they will need to submit specific documents to start making deposits.

Once eligibility is confirmed, you can use the SSY calculator to get an estimate of your investment returns.

How Does an SSY Calculator Help?

Parents often invest in their child’s name to secure their future educational or marriage expenses. Among the many options available, Sukanya Samriddhi Yojana stands out due to its high-interest rates and tax benefits. Under Section 80C of the Income Tax Act, 1961, you can claim a tax deduction of up to ₹1.5 lakh for contributions made to the SSY account. The interest earned and the maturity amount are also tax-exempt.

If you have chosen SSY as your preferred investment option, the SSY calculator can help you calculate the total amount you will receive at maturity. Manual calculations can be tedious and error-prone, but the calculator makes it easy to adjust your contributions to reach your desired savings goal. It’s free to use and provides accurate results with multiple calculations.

Benefits of Using the SSY Calculator:

• Shows the maturity year of your SSY account
• Displays the maturity amount
• Helps you plan your investments effectively

How Does the SSY Calculator Work?

The SSY account matures in 21 years, but contributions are only required for the first 14 years. Even if you stop contributing after 14 years, your existing balance will continue earning interest. The calculator uses the following compound interest formula to calculate the final amount:

A = P (1 + r/n) ^ nt,
where A is the final amount, P is the principal, r is the rate of interest, n is the number of times interest is compounded annually, and t is the number of years.

To use the SSY calculator, simply enter the yearly investment amount, your child’s age, and the year you start investing. The calculator will instantly display the maturity year and amount.

How Can I Use the SSY Corpus?

When the SSY account matures, the entire corpus can be withdrawn by the girl child. The funds can be used for higher education, provided the child has completed the 10th grade and is at least 18 years old. Proof of education expenses, such as university admission documents and fee receipts, will need to be submitted.

Premature withdrawal is also allowed for marriage expenses, as long as the girl is 18 or older. In this case, an affidavit confirming her age is required.