If you are a parent who wants to invest full Rs 1.5 lakh every year in Sukanya Samriddhi Yojana to save money for your daughter’s (girl child) education and marriage needs, then how much will you get at maturity?
We will use the Free Excel based Sukanya Samriddhi Maturity Calculator, that I created a few years back to find out the answer.
Sukanya Samriddhi Yojana account allows you to invest a maximum of Rs 1.5 lakh per financial year. While there is no cap on the number of deposit transactions, the upper limit of total investment in a year is Rs 1.5 lakh per girl child per account per year.
As per the current Sukanya Samriddhi Scheme rules, it is only allowed to make deposits for the first 15 years only. But the account matures in 21 years from the date of account opening or as the girl child gets married, whichever is earlier. Do note that the girl attaining age of 21 has no relevance to the maturity and it is the account tenure which is 21 years. After the 15th year, no further contributions can be made but the SSY account but the account continues to earn interest at the notified Sukanya Samriddhi Interest Rate on the balance amount for the remaining 6 years (from 15th to the 21st year after account opening).
Now let’s see what happens when you invest Rs 1.5 lakh yearly in your daughter’s Sukanya Samriddhi Yojana account for 15 years, and then How much will you Maturity amount after 21-Years?
Value of Rs 1.5 lakh/year in Sukanya Samriddhi Yojana (2023)
Here are the assumptions:
Age of the Daughter – 1 year (assumed you opened the account soon after birth)
Starting Financial Year – FY 2023-24
Annual Deposit – Rs 1.5 lakh per year (maximum annual limit)
No. of Contributions Made – 15 (one each of the first 15 years allowed)
Interest Rate – 8.0% (may vary but we have assumed this for simplicity)
Maturity Period – 21 years
Maturity Financial Year – 2044-45
As per the SSY calculator, if you invest Rs 1.5 lakh each year for 15 years, and assuming 8% interest rate, then the Maturity Value of the Sukanya account after 21 years will be Rs 69.8 lakh. It has assumed that throughout these 21 years, no withdrawals were made.
Withdrawals of up to maximum of 50% of SSY account balance at the end of the financial year can be made preceding the year of application for withdrawal, for the purpose of higher education of the girl child. But such withdrawal for higher education will only be allowed if the girl has attained the age of 18 years or has passed 10th standard, whichever is earlier.
In this case, the amount available to be withdrawn at age 18 years is about Rs 25.65 lakh.
The contributions to Sukanya Account can be claimed as deductions under Section 80C (up to Rs 1.5 lakh per year). The yearly interest income (which is anyways added back to the amount in account) is also tax-free. And finally, the total amount at maturity or withdrawal (for education) is also tax-free. So the Sukanya Samriddhi Yojana has the Tax Exempt-Exempt-Exempt (EEE) status.
Sometime back, I wrote an updated Sukanya Samriddhi Yojana Detailed Guide (2023) which has all the details that should be known to parents investing in Sukanya Yojana in India for their daughters in 2023.
Is Sukanya Samriddhi Yojana Enough for Daughter’s Future?
This is not an easy question to answer.
So even though previously discussed Sukanya Yojana Calculation Chart and Sukanya Yojana Calculation Table highlight how much money can be accumulated using Sukanya Yojana account, let’s not forget that the education inflation at times can be much higher than just 9-10% (and Sukanya only offers 8% as of now)
If you are a conservative risk-avoiding saver, then the Sukanya Samriddhi Scheme makes a lot of sense. Not everyone is comfortable investing in equity schemes and one should respect that fact. A lot of investors prefer guaranteed returns at the cost of earning lower returns. And as a matter of fact, tax-free return of 8.0%, and that too without risk is not bad at all for a conservative, low risk-appetite person. But if you can bear with volatilities of equity investing and can stay on course for 15-20 years, then you can consider doing SIP in good equity funds (assuming your risk profile allows it). Or it can be a combination of equity funds and Sukanya Samriddhi account to save for your daughter’s future. And, if you had your doubts, then please know that you can open both Sukanya Yojana and PPF for Daughters.
So that was it.
I hope now you know how much you can get at 21-year maturity if you invest full Rs 1.5 lakh each year in Sukanya Account for 15 years in India (2023).