SSY Calculator: How To Gift Your Girl Child Rs 67 Lakh When She Turns 21 Yrs Old?

Sukanya Samriddhi Account(SSA)​ is a small savings scheme that is managed by the government of India. When it comes to saving for your girl child SSA is the most sought scheme as it is a tax-free product and offers 8% interest in Q1FY24 yearly compounded. A minimum deposit of Rs 250 and a maximum of Rs 1.5 lakh can be made in SSA each fiscal year.

Under the Income Tax Act, both deposits made and interest earned are entirely tax-free. Only one SSA account can be opened by the guardian in the name of a girl child below the age of 10 years old and after 21 years from the date of account opening or at the time of marriage of girl child after attaining age of 18 years the account completes its maturity. A guardian can give his girl child a gift of Rs 67 lakh when she turns 21 years old by opening a Sukanya Samriddhi Account(SSA) account let's know how from industry experts.

Satyen Kothari, the founder and CEO of Cube Wealth

Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme aimed at securing the future of a girl child. To calculate how much you need to invest to accumulate Rs 67 lakh when she turns 21, you would need to consider the prevailing interest rate offered by the scheme. As of my knowledge cutoff in September 2021, the interest rate for SSY was 7.6% per annum. Assuming this rate remains constant, you would need to invest approximately Rs 10,000 per month for 14 years to accumulate a corpus of Rs 67 lakh. However, please note that the interest rates may change, so it's essential to check the current rates and use an online SSY calculator for a more precise calculation.

Amit Gupta, MD, Sag Infotech

The Sukanya Samriddhi Yojana (SSY) account is a Government of India-backed initiative designed to provide financial security and empowerment for girl children. This small deposit scheme enables parents or legal guardians to open an account in the name of a girl child, offering a promising future for her education and marriage expenses. With a minimum initial deposit of just Rs 250, the SSY account can be opened at post offices or any commercial bank branch across the country. And now with the SSY Calculator, planning for your daughter's future has become even more effortless and accurate.

The SSY Calculator is a powerful utility tool that enables individuals to determine the potential growth of their investment based on the deposit amount, the girl child's age, and the year of investment.

Using the SSY Calculator is a straightforward process. You need to input three essential details:

1. Amount of Deposit: Enter the amount you plan to deposit annually into the SSY account. Remember, the maximum limit is Rs 1.5 lakh per financial year.

2. Age of the Girl Child: Provide the current age of your daughter, which must be below 10 years, as the SSY account can be opened anytime from birth until she reaches this age.

3. Starting Year of Investment: Specify the year in which you plan to start investing in the SSY account.

Once you input these details, the SSY Calculator works its magic and presents you with the total interest earned and the maturity amount at the end of the investment period.

The SSY Calculator utilizes a mathematical formula to calculate the maturity amount: A = P(1 + r/n)^(nt) Where: A = Amount at maturity P = Initial deposit r = Rate of interest n = Number of years the interest compounds t = Number of years

Let's take an example to understand the power of the SSY Calculator better. Suppose you decide to deposit Rs 1,50,000 each year for 15 years in your daughter's SSY account. The current interest rate for the SSY account stands at 7.6% per annum. Now, assuming you start the investment in the current year, after a maturity period of 21 years you will get around 66 lakh rupees.

This tool provides you with a clear understanding of the financial progress you can expect for your daughter's future. It empowers you to make necessary adjustments to the investment amount or duration to achieve your desired goals. With the SSY Calculator, you can explore different scenarios, making informed decisions that align with your financial capabilities and aspirations for your daughter.

The SSY Calculator is an essential resource for every parent or legal guardian looking to secure their daughter's financial future. It brings transparency, accuracy, and convenience to the planning process, allowing you to explore the full potential of the Sukanya Samriddhi Yojana.

Aashika Jain, Financial Expert and Editor, Forbes Advisor

The Sukanya Samriddhi Yojana is among the most progressive savings schemes ideas specifically rolled out by the government of India. This scheme is designed to empower the girl child and allows the parent to deposit money either once as a lump sum or on a periodic basis in a single financial year.

For you to give your girl child INR 67 lakh when she turns 21 years old, all you need to do is deposit INR 1.5 lakh annually for a minimum period of 15 years from when the girl turns five years old to create the required corpus.

With an 8% fixed annual return and a lock-in period of 21 years, you will be able to keep the corpus ready in time.

Shruti Jain, CSO, Arihant Capital Markets Ltd

To gift your girlchild ₹67 lacks when she turns 21 years old through the Sukanya Samriddhi Yojana (SSY), you can calculate the investment amount in the following way:

Calculate the investment amount: Investment Amount = Desired Corpus / ((1 + Interest Rate)^(Number of Years))

Investment Amount = 67,00,000 / ((1 + 0.08)^(21))

Using the above formula and considering the current annual interest rate of 8% offered by the SSY account, the approximate investment amount required in the SSY would be around ₹15,75,000.

Amar Ranu, Sr. VP & Head - Investment products and Insights, Anand Rathi Shares and Stock Brokers

SSY is a small deposit scheme exclusively for a girl child; this was launched in 2015 as a part of the Beti Bachao Beti Padhao campaign. For one to participate, the parent/legal guardian of the female kid can open the account if the kid is below 10 yrs old and the maximum permissible investment is Rs. 1.5 lakh. One can contribute to this account up to 21 yrs of kid's age. The maturity proceeds are tax free in the hands of investors. This is one of the best government schemes to build a corpus tax free for female kids.

If one contributes Rs. 1.5 lakh p.a. (maximum permissible limit) at the kid's age of 5 yrs and continue till 21 yrs of her age, the corpus at the end of 21st year would be INR 67 lakhs at current interest rate of 8% and this corpus would be tax free.

Pamarty Venkataramana, an accomplished international corporate lawyer, columnist & advisor to income tax officials

The Sukanya Samriddhi Yojana is a government-backed savings scheme in India aimed at promoting the welfare of the girl child. It offers attractive interest rates and tax benefits. To calculate how much you need to invest to gift your girl child Rs 67 lakh when she turns 21 years old, you need to consider the following factors:

Investment period: The Sukanya Samriddhi Yojana has a tenure of 21 years or until the girl child gets married, whichever is earlier. So, in this case, the investment period would be 21 years.

Interest rate: The interest rate for Sukanya Samriddhi Yojana is not fixed and is subject to change. As of my knowledge cutoff in September 2021, the interest rate was 7.6% per annum. However, it is essential to check the latest interest rate from the official sources.

Investment frequency: You can invest in the scheme on a yearly basis. The minimum investment amount is Rs 250, and the maximum is Rs 1.5 lakh per year.

To calculate the investment required, you can use the following formula:

Future Value = Present Value * (1 + Interest Rate/100)^n

Where:

Future Value is the desired amount (Rs 67 lakh)

Present Value is the investment amount

Interest Rate is the annual interest rate (7.6% or the current rate)

n is the number of years (21 years)

Using this formula, you can calculate the investment required to achieve the desired amount. Keep in mind that the interest rate may change in the future, so it's a good idea to check for any updates from the official sources or consult with a financial advisor for more accurate calculations.

Pankaj Mathpal, Certified Financial Planner

Sukanya Samriddhi Yojna is a government run savings scheme for the benefits of girl childs. The rate of interest of the scheme is reviewed on a quarterly basis and reset from time to time. The current rate of interest is 8% per annum. The maximum limit to invest in the scheme is Rs. 1.50 lakhs in one financial year. Calculating at 8% per annum interest, the account holder should invest Rs. 12,500 per month for 15 years in the scheme to accumulate around Rs. 67 lakhs at the end of 21 years. The account holder is allowed to invest in the scheme for a period of maximum 15 years only but the accumulated amount can grow for 6 more years. The total corpus can be lesser if interest rates are revised downwards anytime in future.

Suman Bannerjee, CIO, Hedonova, a US based Hedge Fund

To accumulate Rs 67 lakh in Sukanya Samriddhi Yojana for your girl child when she turns 21 years old, you would need to invest approximately Rs 1,55,420.79. This calculation is based on an annual interest rate of 8% and a tenure of 21 years.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.