SSY Calculator: Find out how large a fund you can build in the Sukanya Samriddhi Yojana with a monthly investment of ₹2,000..

Among the government's small savings schemes, the Sukanya Samriddhi Yojana is one that every parent should consider investing. This scheme offers several advantages. By investing in it, a substantial fund can be accumulated by the time a daughter grows up, which can be useful for her higher education. Furthermore, the tax benefits associated with the scheme make it even more attractive.

**Invest according to your financial capacity**

A key feature of this scheme is that parents can invest according to their own financial capacity. There is no obligation to make monthly contributions. Parents can choose to invest amounts such as ₹1,000, ₹2,000, ₹3,000, ₹4,000, ₹5,000, or more each month. The larger the investment, the greater the fund that will be accumulated for the daughter. The minimum annual investment is just ₹250, while the maximum annual investment allowed per daughter is ₹1.50 lakh.

**Accounts can be opened for up to two daughters (aged 10 or younger)**

There are specific terms and conditions for availing the benefits of the Sukanya Samriddhi Yojana (SSY). This scheme is exclusively for daughters. Parents can open accounts under the Sukanya Samriddhi Yojana for a maximum of two daughters, provided that the daughter(s) are not older than 10 years of age. If an account is opened shortly after a daughter's birth, a significant fund will be accumulated by the time she reaches the age of 21.

**Investments required for only 15 years**

Under this scheme, investments are required for a period of 15 years, while the scheme itself matures in 21 years. This means that if an account is opened soon after a daughter's birth, a substantial fund will be ready by the time she turns 21. These funds can be utilized for her higher education or marriage expenses. In our country, a significant amount of money is spent on a daughter's wedding. This scheme proves helpful in managing such expenses.

The scheme with the highest interest rate among small savings schemes

The Sukanya Samriddhi Yojana (SSY) offers an interest rate of 8.2%, which is the highest among all small savings schemes. A key feature of this scheme is that half of the accumulated funds can be withdrawn once the daughter turns 18 or completes the 10th grade. If the daughter gets married after the age of 18, the scheme can be closed prematurely.

No tax is levied on the maturity proceeds.

The tax benefits make this scheme even more attractive. Like the Public Provident Fund (PPF), this scheme falls under the 'Exempt-Exempt-Exempt' (EEE) category. This means that contributions made to the scheme are tax-free, the interest earned on the deposits is tax-free, and the maturity amount—received 21 years after opening the account—is also entirely tax-free. Furthermore, individuals opting for the 'old tax regime' can claim a deduction under Section 80C of the Income Tax Act.

A monthly contribution of ₹2,000 can build a fund exceeding ₹11 lakh.

Contributing ₹2,000 every month to the SSY helps build a substantial fund by the time of maturity. By investing ₹2,000 per month—amounting to ₹24,000 annually—a fund of ₹11,08,412 can be accumulated for the daughter. Over the tenure, your total investment would amount to ₹3,60,000. You earn an interest of Rs 7,48,412 on this. The government launched this scheme in 2015.

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