How much will Sukanya Samriddhi give at maturity?

Sukanya Samriddhi Yojana (SSY) is a government savings scheme for a girl child. A parent or guardian opens the account before she turns 10, and deposits between ₹250 and ₹1,50,000 each financial year. Deposits are made for the first 15 years, and the account matures 21 years after it was opened. For the last 6 years no deposits are needed, but the balance keeps earning interest.

Interest is compounded yearly at a rate the government sets every quarter. It is 8.2% a year at the time of writing. The figures below assume that rate holds for the full term and that each year’s deposit is made by 5 April, so it earns interest for the whole year.

• At the maximum ₹1.5 lakh a year, ₹22.5 L of deposits grows to about ₹71.82 L, roughly 3.2 times what you put in.
• About 55% of the interest is earned after the last deposit. The balance is ₹44.76 L at the end of year 15 and compounds for 6 more years untouched.
• The same ₹1.5 lakh a year in PPF for 15 years at 7.1% gives about ₹40.68 L. SSY ends higher because of its higher rate and six extra years of growth.

The rate will not stay fixed for 21 years. If it averaged 7.2% instead of 8.2%, the maximum deposit would grow to about ₹62.28 L rather than ₹71.82 L. Treat the table as a guide to the order of magnitude, not a promised figure, and revisit the plan when the rate changes.

The opening age does not change the maturity amount, because every account runs for 21 years from the date it is opened. It changes when the money arrives, and how much is available for the partial withdrawal allowed once she turns 18: up to 50% of the balance at the end of the previous financial year, for higher education.

Opening early gives the balance more time to build before she turns 18, so the withdrawal available for college is much larger. An account opened at 10 has had only 8 years of deposits by then, but matures sooner, at 31.

• The account can be opened for a girl below 10, at a post office or an authorised bank, by her parent or guardian.
• A family can open accounts for up to two daughters, with an exception for twins or triplets.
• Deposits run for 15 years. Missing the minimum ₹250 in a year makes the account a defaulted account, which can be regularised by paying the arrears with a small penalty.
• The account matures 21 years after opening. It can also be closed early for her marriage after she turns 18.
• The interest and maturity amount are tax-free. The deposit qualifies for the old regime deduction (formerly Section 80C) within the ₹1.5 lakh overall limit; there is no deposit deduction in the new regime.

• Depositing late in the financial year. A deposit made in March earns far less interest that year than one made in April.
• Counting the maturity amount in today’s rupees. A figure 21 years away will buy much less than it does now.
• Opening an account for an older daughter just before she turns 10 without checking whether the shorter time before college suits your plan.
• Letting the account fall into default by missing the minimum deposit, and only noticing when the arrears and penalty fall due.

1. Open the account as early as you can. Every year of delay pushes the maturity date later without adding to the amount.
2. Deposit by 5 April each year to earn interest on that year's deposit for the full year.
3. Estimate the cost of her education at today's prices and inflate it to the year she will need it.
4. Compare that target with the SSY withdrawal at 18 and the maturity amount, and cover the gap with other investments.
5. Check the SSY rate each quarter; a change applies to the whole balance.