NewDelhi: Several parents who open the Sukanya Samriddhi Yojna (SSY) for their girl child remain unsure about its maturity timeline. Many parents open the account when the girl child is 5 years old or above but remain doubtful about when the scheme will mature. SSY is a government-backed small deposit savings scheme for the benefit of a girl child. The scheme matures exactly 21 years from the date of opening the account.
Several parents who opened the account when the girl was 5 years old wonder if the maturity amount will be paid when she turns 21 or if the maturity date will extend to age 26. Here’s everything you need to know about the maturity date of SSY.
Who can open the account?
The Sukanya Samriddhi Account Scheme is opened by the guardian in the name of a girl child who has not attained the age of ten years as of the date of opening of the account. An account can be opened in post offices and in authorised banks. The account can be transferred anywhere in India from one post office or bank to another. Investment in the Sukanya Samriddhi Yojana scheme is exempted under Section 80C of the Income Tax Act, 1961.
What is the minimum and maximum deposit limit?
The account can be opened with a minimum deposit of Rs 250 and a maximum deposit of Rs 1.5 lakh in a financial year. Deposits are to be made in the account till the completion of a period of 15 years from the date of opening of the account.
How much interest is provided on deposit?
Under the SSY, your deposits earn a highly competitive, government-backed interest rate of 8.2 percent per annum. The interest is compounded anually which means instead of only paying interest on your original deposit, the bank pays interest on your deposit plus all the interest you accumulated in previous years
When does the account mature?
The account matures on completion of a period of 21 years from the date of its opening. The closure of the account may also be permitted before the completion of 21 years for the marriage of the account holder after her attaining the age of 18 years.
Withdrawal of up to a maximum of 50 percent of the amount is allowed for the purpose of education of the account holder.
When will the scheme mature if account opened when child is 5 years old?
The maturity of an SSY does not depend on the age of the girl child but on when the investment starts. The scheme will mature exactly 21 years from the date you opened the account, regardless of your daughter’s age. If you opened the account when your daughter was 5, it will mature when she is 26 years old (5 + 21). You only have to make deposits for the first 15 years after which the corpus earns compounding interest without additional deposits for the final 6 years.
How much will you get after 21 years?
If you invest Rs 60,000 every year for 15 years in the SSY, you will deposit a total of Rs 9,00,000. Assuming the current government interest rate of 8.2 percent remains constant, your estimated maturity amount after 21 years will be approximately Rs 28.75 lakh.
You are only required to make annual deposits for the first 15 years. The account matures 21 years from the date of opening. Even though you stop depositing after 15 years, the accumulated amount continues to earn interest at the prevailing rate for the remaining 6 years.
Here is how your money grows over time
Total investment: Rs 9,00,000 (over 15 years)
Estimated interest earned: Rs 19,75,417
Total maturity value after 21 years: Rs 28,75,417
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