Sukanya Samriddhi Yojana: By depositing ₹1.5 lakh every year, the daughter will get ₹71.8 lakh..
Sukanya Samriddhi Yojana: Parents often begin saving early to ensure a better future for their daughters. The central government’s Sukanya Samriddhi Yojana (SSY) is considered an excellent option for this purpose. Currently, for the October–December 2026 quarter, the scheme offers an annual interest rate of 8.2%. If parents deposit the maximum limit of ₹1.5 lakh annually, the fund could grow to approximately ₹71.8 lakh by the time of maturity. While this amount may seem substantial at first glance, an important question arises: will the value of ₹71.8 lakh received 21 years from now be the same as the value of ₹71.8 lakh today? The answer is no—due to inflation, which erodes the purchasing power of money over time.
How does an annual deposit of ₹1.5 lakh grow to ₹71.8 lakh?
Under the Sukanya Samriddhi Yojana, a maximum of ₹1.5 lakh can be deposited in a single financial year. The investment period for this scheme is 15 years, while the account matures 21 years from the date of opening. If parents deposit ₹1.5 lakh every year for 15 consecutive years, their total investment will amount to ₹22.5 lakh. The interest earned, combined with the effect of compounding, significantly boosts the total corpus. Assuming an annual interest rate of 8.2% remains constant throughout the 21-year tenure, the maturity value could reach approximately ₹71.8 lakh. However, it is important to note that this 8.2% interest rate is not fixed for the entire 21-year period. The government periodically reviews the interest rates for small savings schemes; therefore, any future changes to the interest rate could cause the final maturity amount to vary.
What will be the real value of ₹71.8 lakh after 21 years? Given the substantial sum accumulated under the Sukanya Samriddhi Yojana (SSY), one must not overlook the impact of inflation. Consider a scenario where parents open an account during their daughter’s childhood, which then matures after 21 years. By that time, the costs of education, living expenses, medical care, and other necessities will have risen significantly compared to today’s levels. For instance, if the average annual inflation rate remains at 6% over the next 21 years, the purchasing power of the ₹71.8 lakh received at maturity would be equivalent to approximately ₹21 lakh in today’s terms. This does not mean the actual amount in the account will decrease; rather, it means that the volume of goods and services that can be purchased with that sum will be lower due to inflation.
Is an investment in the SSY sufficient for a daughter’s future?
The primary advantage of the Sukanya Samriddhi Yojana is that it fosters a habit of regular, long-term saving. Parents can contribute funds for 15 years, after which the account continues to earn interest until maturity. However, one should not assume that the projected ₹71.8 lakh will be enough to cover all of a daughter’s future educational and other needs. This figure is based on the assumption that an interest rate of 8.2% will be maintained consistently. Therefore, parents should undertake separate financial planning, keeping in mind the costs of their daughter’s higher education and other major future expenses. While the Sukanya Samriddhi Yojana serves as a robust vehicle for long-term savings, it would be unwise to rely on it as the sole investment option for meeting future requirements, especially when accounting for inflation.
Disclaimer: This content has been sourced and edited from NDTV India. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
