sukanya samriddhi yojana – calculating maturity value after 21 years

This post is written by Shiv Kukreja, who is a Certified Financial Planner and runsa financial planning firm, Ojas Capital in Delhi/NCR. He can be reached [email protected]

Sukanya Samriddhi Yojana has received a great initial response from the generalpublic. As the scheme offers 9.1% tax-free rate of interest, investors are finding thisscheme to be extremely attractive and want to invest in it as soon as possible. Theyalso need handholding to invest in this scheme. But, due to lack of requiredinformation with the post offices and authorised bank branches, people are finding itdifficult to do so.

I have posted two articles about this scheme and both have received over hundredcomments from the visitors. I have been getting many queries regarding the maturityvalue of this scheme. People want to know the value of their investment as thescheme gets matured after 21 years.

Though it is almost impossible to calculate a precise maturity value of this scheme as there are many variables on which its maturity valuewill depend, I have tried to make a couple of tables in which the maturity value has been calculated keeping those variables to be constantand yearly & monthly contribution to be the only variable.

Certain assumptions have been made for calculating these maturity values and those assumptions are:

* Rate of Interest has been assumed to be 9.1% for all these 21 years.

* Yearly contributions have been assumed to be made on April 1 every year i.e. the beginning of the financial year.

* Monthly contributions have been assumed to be made on 1st day of every month.

* Although it is not mandatory, a fixed amount of yearly/monthly contribution has been assumed.

* It is also assumed that no withdrawal is made throughout these 21 years.

Here you have the tables:

Yearly Contribution Table

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Monthly Contribution Table


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I hope these two tables help people in deciding how much amount they would like to contribute to this scheme in order to achieve theirgirl child’s marriage and/or higher education goals.

Before you go ahead and plan to get an account opened, I would like to again highlight the main features of this scheme:

Who can open this account? - Parents or a legal guardian of a girl child up to the age of 10 years, can open this account in the name ofthe girl child. Up to December 1, 2015, one year grace period has been provided to allow this account to get opened for a girl child who isborn on or after December 2, 2003.

9.1% Tax-Free Rate of Interest - This scheme offers 9.1% rate of interest, which has also been exempted from tax in this year’s budget.But, this rate is not fixed at 9.1% for the whole tenure and is subject to a revision every financial year.

Scheme Matures in 21 years or on Girl’s Marriage, whichever is earlier - The scheme gets matured on completion of 21 years fromthe date of opening of the account or as the girl child gets married, whichever is earlier. Please note that the girl attaining the age of 21years has no relevance to maturity of this scheme.

Deposit for 14 years only - You need to deposit a minimum of Rs. 1,000 and a maximum of Rs. 1,50,000 only for the first 14 years, afterwhich you are not required to deposit any amount. Your account will keep earning the applicable interest rate for the remaining 7 years ortill it gets matured on your daughter’s marriage.

Documents Required - You need birth certificate of the girl child, along with the identity proof and residence proof of the guardian, toopen an account under this scheme. You can approach any post office or authorised branches of some of the commercial banks to get thisaccount opened.

You can check the rest of the features of this scheme from this post – Sukanya Samriddhi Yojana – Tax-Free Small Savings Scheme for aGirl Child

You can also download the application form to open an account from this post – Sukanya Samriddhi Yojana – Application Form & List ofBanks to Open an Account. If you still have any query or something related to discuss, please share it here.


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