Investment of ₹15 lakh in Sukanya Samriddhi Yojana for daughter's future to yield ₹48 lakh

The Sukanya Samriddhi Yojana (SSY), run by the government for the future of daughters, can prove to be an excellent option for long-term savings. According to current reports, if parents invest ₹1 lakh every year, they could receive approximately ₹47.88 lakh at the end of 21 years.

Creating a long-term fund for expenses such as a daughter's education and marriage has always been a matter of concern for parents. Keeping this requirement in mind, the Sukanya Samriddhi Yojana is available as a significant option. The specialty of this scheme is that the investor only needs to deposit money for 15 years, while the account matures after 21 years. This means that even after 15 years of investment, interest continues to be earned on the amount remaining in the account for the remaining 6 years.

If a person deposits ₹1 lakh annually in this scheme, a total investment of ₹15 lakh will be made from their pocket over a period of 15 years. If an annual interest rate of 8.2% is maintained throughout this 21-year period, this amount could grow to approximately ₹47.88 lakh at the time of maturity. This will include an addition of approximately ₹32.88 lakh as interest.

Regarding the interest rate, according to current reports, an annual interest rate of 8.2% has been applied to the Sukanya Samriddhi Yojana for the October-December 2026 quarter. In this scheme, interest is calculated on an annual compounding basis. This means the investor earns interest not only on the principal amount deposited but also on the interest earned previously. Due to this compounding interest, the fund grows very rapidly in the long run. However, the government reviews the interest rates of small savings schemes every quarter, so the rate of 8.2% cannot be considered fixed for the full 21 years. If interest rates change in the future, the amount received at maturity may increase or decrease. The calculation provided here is based on the 8.2% interest rate remaining constant for the entire 21 years.

To understand how the investment will grow, suppose a parent deposits ₹1 lakh at the beginning of each financial year into the daughter's account and the interest rate remains 8.2%. After depositing ₹1 lakh at the beginning of the first year, interest of ₹8,200 will be received at the end of the year at a rate of 8.2%, making the total amount ₹1,08,200. At the beginning of the second year, another ₹1 lakh will be added, bringing the total amount to ₹2,08,200. Now, interest of approximately ₹17,072 (8.2%) will be earned on this amount, and at the end of the year, there will be ₹2,25,272 in the account. Adding another ₹1 lakh at the beginning of the third year will make the total amount ₹3,25,272, on which approximately ₹26,672 interest will be earned, and the total balance at the end of the year will be approximately ₹3,51,945. In this way, the fund continues to grow due to the addition of new amounts every year and the earning of interest on interest. New investment stops after 15 years, but with interest being added for the next 6 years, the amount can reach approximately ₹47.88 lakh at maturity.

There is no restriction to withdraw money only at maturity in this scheme. A facility to withdraw money in between for the daughter's higher education is also provided. For this, the daughter must have completed 18 years of age or must have passed the 10th standard; whichever condition is met first will be valid. After this condition is met, up to a maximum of 50% of the balance that was in the account at the end of the previous financial year can be withdrawn.

Sukanya Samriddhi Yojana was a small savings scheme started by the Government of India to provide financial security for the bright future of daughters and for their education as well as marriage. The main objective of this scheme was to collect funds for the education and welfare of daughters in the country.