Guide
Sukanya Samriddhi: fifteen years of deposits, twenty-one years of growth
The Sukanya Samriddhi Yojana is a government savings scheme for the girl child, meant for education and marriage costs. A parent or guardian opens the account in her name, makes deposits for fifteen years, and the account matures twenty-one years after it was opened. Interest is tax-free and the rate is set by the government each quarter. Because the structure is unusual, with deposits that stop long before the account does, it helps to see the numbers.
The structure
An account can be opened for a girl up to the age of 10. You may deposit from 250 up to 1,50,000 in a financial year, for fifteen years from opening. After that no more deposits are accepted but interest continues for six more years. At maturity, or earlier when she marries after 18 under the scheme rules, the account is closed and the balance paid out. The page models this structure with a 15-year deposit period and a 21-year life.
Timing of deposits
As in the PPF, interest depends on the lowest balance between the 5th and the end of each month and is credited yearly, so the same three timings are offered: a yearly deposit by 5 April, monthly deposits by the 5th, and a deposit at the end of the year. The best is the early lump sum. Choose the pattern that matches how you plan to save, and compare.
A worked example
The default is 1,50,000 a year deposited by 5 April, at 8.2%, for a girl aged 2 when the account opens. Over 15 years you deposit 22,50,000. At maturity after 21 years the balance is 71,82,119, so interest is 49,32,119; the girl is 23. In year one the interest is 12,300 and the balance 1,62,300. In year 21, with no deposit, interest alone is 5,44,301. When she turns 18, which is year 16 of the account, the balance is 48,43,020. A second sample, 5,000 a month for a girl aged 5, reaches 27,73,059 at maturity from 9,00,000 deposited, with 13,64,743 at 18.
The balance at 18
Partial withdrawal is allowed once the girl is 18, or has passed the tenth class, up to a share of the balance, for higher education, under the scheme rules. The page shows the balance at 18 so that you can see how much would be available for that purpose. In the sample it is about two thirds of the final amount, because the last three years of growth are still to come.
Choosing the amount
Because the account allows up to 1,50,000 a year, you can fit it to your income. A smaller amount gives a proportionately smaller result, as the page shows. The scheme does not require the same deposit every year, but the page models a constant amount. Paying the minimum each year keeps the account active, since missing the minimum triggers a penalty.
Edge cases
A girl’s age above 10 at opening is rejected, because the scheme does not accept it. A deposit under 250 or above 1,50,000 is rejected. A rate of zero returns what you put in. The page assumes the same rate for 21 years.
Limits
The rate changes every quarter, rules about the number of accounts per family, premature closure and defaults are not modelled, and the scheme’s rules may change. Treat the maturity amount as an illustration, and read the current terms at the bank or post office before you deposit.
Related tools
- PPF Calculator uses the same interest method for a general long-term account.
- Education Savings Calculator estimates the cost the savings are meant for.
- SIP Calculator shows a market-linked alternative, with returns that are not guaranteed.
- 80C Tax Calculator shows how SSY deposits use the yearly deduction limit.
Checked against the current version of the Sukanya Samriddhi Yojana Calculator on .