How much of a corpus will be created by depositing ₹1,500 per month in the Sukanya Samriddhi Yojana? Understand the full calculation..

Sukanya Samriddhi Yojana: The Sukanya Samriddhi Yojana is a highly popular government scheme designed for a daughter's future. Investments can be started with a small amount; even by depositing ₹1,500 per month, you can build a substantial fund over the long term.

However, the government may revise the interest rate for the Sukanya Samriddhi Yojana on a quarterly basis. Consequently, the actual amount received upon maturity may vary.

What would be the total investment if ₹1,500 is deposited monthly?

Depositing ₹1,500 per month translates to an annual investment of ₹18,000. If you invest consistently for 15 years, the total deposited amount would be:

₹1,500 × 12 × 15 = ₹2,70,000

This means a total of ₹2.70 lakh would be invested from your pocket over 15 years.

How much of a fund can be accumulated upon maturity?

Under the Sukanya Samriddhi Yojana, deposits are made for 15 years, while the account matures after 21 years. This means you do not need to make investments after the initial 15-year period; however, the accumulated amount in the account continues to earn interest for the subsequent 6 years.

If an interest rate of 8.2% remains constant throughout the tenure, you could receive approximately ₹8.32 lakh upon maturity. Your total investment would be ₹2.70 lakh, while the estimated interest earned would be around ₹5.62 lakh.

Investment stops after 15 years

A key feature of the scheme is that you are not required to deposit money for the full 21-year term; you invest for only 15 years. Subsequently, the accumulated corpus continues to earn interest for the next 6 years. During this period, the benefit of compounding allows the fund to grow rapidly.

This is why the ₹2.70 lakh invested over 15 years can grow to approximately ₹8.32 lakh by the time of maturity.

How much can the fund grow year by year? Based on an annual interest rate of 8.2%, the estimated fund accumulation would look like this:

Tenure    Estimated Fund
5 years    ₹1.11 lakh
10 years    ₹2.75 lakh
15 years    ₹5.18 lakh
16 years    ₹5.61 lakh
17 years    ₹6.07 lakh
18 years    ₹6.57 lakh
19 years    ₹7.11 lakh
20 years    ₹7.69 lakh
21 years    ₹8.32 lakh
This calculation assumes that the current interest rate of 8.2% remains constant throughout the tenure.

When is it best to deposit ₹1,500 per month?

Interest on the amount deposited in a Sukanya Samriddhi account is calculated based on the balance available before the 5th of the month.

Therefore, if you invest monthly, depositing the money before the 5th can be beneficial. This allows you to earn interest on the deposited amount sooner.

Who can open a Sukanya Samriddhi account?

A Sukanya Samriddhi account can be opened in the name of a girl child under the age of 10. The account can be opened by parents or a legal guardian.

A minimum deposit of ₹250 is required in a financial year. A maximum of ₹1.5 lakh can be deposited annually.

Building a large fund with a small amount

₹1,500 per month is not a very large sum. However, consistent long-term investment allows the power of compounding to have a significant impact. In this example, the total investment over 15 years is only ₹2.70 lakh, yet the fund could grow to approximately ₹8.32 lakh after 21 years.

This means the interest earned could exceed the total principal invested. However, the final maturity amount will depend on future interest rates.