Sukanya Samriddhi Yojana: Why is the 5th of the month crucial, and what happens if there is a delay in depositing funds?

Sukanya Samriddhi Yojana: If you are investing in the Sukanya Samriddhi Yojana for your daughter's future, simply making the deposit is not enough; the date of investment also impacts your returns.

Sukanya Samriddhi Yojana: If you have opened a Sukanya Samriddhi Yojana (SSY) account for your daughter, the 5th of every month is a crucial date for you. Many people deposit money regularly but are unaware that the date of the deposit can influence their returns.

Regarding interest rates, the Sukanya Samriddhi Yojana currently offers an annual interest rate of 8.2%. Under this scheme, a minimum of ₹250 and a maximum of ₹1.5 lakh can be deposited during a financial year. Investors can make deposits as frequently as they wish, in multiples of ₹50.

Why is it important to deposit money before the 5th?

Interest under this scheme is calculated based on the lowest balance available in the account between the 5th and the last day of the month. Simply put, if you deposit money by the 5th of the month, you start earning interest on that deposited amount from that very month.

Conversely, if you deposit money on or after the 6th of the month, you will not earn interest on that amount for that month; the interest calculation will begin from the following month. Although interest is calculated throughout the year, it is credited to the account once a year on March 31st, which is also when the benefit of compound interest is added.

What could be the potential loss?

In terms of potential loss, consider an investor who deposits ₹5,000 monthly into a Sukanya Samriddhi account for 21 years. If they deposit the money on or before the 5th of each month, the account could accumulate approximately ₹27.73 lakh after 21 years. However, if the investment is made after the 5th of the month, the maturity amount will be approximately ₹27.55 lakh. This means a difference of about ₹18,143 can arise simply due to the delay in the deposit date.

Is the interest for the entire year lost?

The direct answer is no. Depositing money after the 5th of the month does not result in the loss of the entire year's interest. It only means earning one month's less interest on that specific month's deposit; however, such small amounts can create a significant difference over the long term. Therefore, if you want better returns from the Sukanya Samriddhi Yojana, try to make your investment on or before the 5th of every month.