Sukanya Samriddhi Account (SSA): From 16th year till maturity, how it provides Rs 26.12 lakh interest without any investment
Sukanya Samriddhi Account (SSA): The minimum investment in the scheme in a financial year is Rs 250, and the maximum is Rs 1.50 lakh. The guardian in the name of a girl child below the age of 10 years can open SSA. It can be opened for a maximum of two girls in a family. One can make investments for a maximum of 15 years, but the maturity period of the scheme is 21 years.
Sukanya Samriddhi Account (SSA) is girl child-centric post office scheme, where an account holder can build a corpus for education and marriage of their daughter. The scheme provides 8.2 per cent interest rate compounded and calculated yearly. The minimum investment in the scheme in a financial year is Rs 250, and the maximum is Rs 1.50 lakh. The guardian in the name of a girl child below the age of 10 years can open SSA. It can be opened for a maximum of two girls in a family. One can make investments for a maximum of 15 years, but the maturity period of the scheme is 21 years. Account holders get benefit of this 6-year period, where they invest 0 rupee, but get compound interest of more than 26 lakh. In this write-up, know how this works and other salient features of the scheme.
(Dislaimer: This calculation is projection and not advice to invest. Do your own due diligence or consult an advisor before making investment for your girl child)
Photos: Unsplash/Pixabay
Sukanya Samriddhi Account (SSA) tax benefits
Deposits up to Rs 1.50 lakh in a financial year in SSA provide tax benefits under Section 80C of the Income Tax Act.
Sukanya Samriddhi Account tax benefits
Interest earned in the scheme is tax free under the Income Tax Act, 1961.
Sukanya Samriddhi Account withdrawal conditions
Withdrawal may be taken from account after a girl child attains the age of 18 or passes the 10th standard. However, in such a situation, withdrawal can be taken up to 50 per cent of the balance available at the end of the preceding financial year.
Sukanya Samriddhi Account closure
SSA can be closed after 21 years from the date of opening the account. It can also be closed at the time of marriage of the girl child after attaining the age of 18 years. (But no closure is allowed before 1 month or after 3 months from the date of marriage.).
How interest is calculated in Sukanya Samriddhi Account
If you invest Rs 1.50 lakh in a financial year for 15 years, your total investment will be Rs 22,50,000. The interest earned will be Rs 46,82,648, and the maturity amount will be Rs 69,32,648.
How do you get Rs 24 lakh interest without investing a rupee in SSA?
If you see the chart below, after 15 years, the compound interest that you earn after 15 years is Rs 43,20,516.00. However, since you make no investment in the scheme after 15 years, your investment from that stage till the maturity period of 21 years is zero.
How do you get Rs 24 lakh interest without investing a rupee in SSA?
On the other hand, you keep getting compound interest on your investments.
How do you get Rs 24 lakh interest without investing a rupee in SSA?
In the 16th year, you earn interest of Rs 3,54,282.28; in the 17th, it is Rs 3,83,333.42; in the 18th year, the interest amount rises to Rs 4,14.766.76; in the 19th year, you will have Rs 4,48,777.64; in the 20th year, you get Rs 4,85,577.41; in the 21st year, the interest amount is 5,25,394.75. So, in all 6 years, you get a total interest of Rs 26,12,132.26.
|
Financial Year
|
Amount Deposited (₹) | Interest Earned (₹) | Year End Balanced (₹) |
| 1 | 150000 | 6662.5 | 156663 |
| 2 | 150000 | 19508.82 | 326171 |
| 3 | 150000 | 33408.55 | 509580 |
| 4 | 150000 | 48448.05 | 708028 |
| 5 | 150000 | 64720.79 | 922749 |
| 6 | 150000 | 82327.89 | 1155077 |
| 7 | 150000 | 101378.8 | 1406455 |
| 8 | 150000 | 121991.8 | 1678447 |
| 9 | 150000 | 144295.2 | 1972742 |
| 10 | 150000 | 168427.4 | 2291170 |
| 11 | 150000 | 194538.4 | 2635708 |
| 12 | 150000 | 222790.6 | 3008499 |
| 13 | 150000 | 253359.4 | 3411858 |
| 14 | 150000 | 286434.9 | 3848293 |
| 15 | 150000 | 322222.5 | 4320516 |
| 16 | 0 | 354282.3 | 4674798 |
| 17 | 0 | 383333.4 | 5058131 |
| 18 | 0 | 414766.8 | 5472898 |
| 19 | 0 | 448777.6 | 5921676 |
| 20 | 0 | 485577.4 | 6407253 |
| 21 | 0 | 525394.8 | 6932648
|