1. What is Sukanya Samriddhi Yojana Scheme?

The Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme for girl children in India. It offers attractive interest rates and tax benefits under Section 80C of the Income Tax Act.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( P \) — Principal amount (initial deposit)
• \( r \) — Annual interest rate (in decimal)
• \( t \) — Time period in years
• \( FV \) — Future value of the investment

Explanation: The formula calculates how much your investment will grow over time with compound interest.

3. Importance of SSY Calculation

Details: Calculating the future value helps parents plan for their daughter's education and marriage expenses by showing how much their regular investments will grow.

4. Using the Calculator

Tips: Enter the principal amount in ₹, annual interest rate in percentage, and time period in years (1-21 years as per SSY rules).

5. Frequently Asked Questions (FAQ)

Q1: What is the current SSY interest rate?
A: As of 2023, the interest rate is 8.0% per annum, compounded annually. This is subject to quarterly revision by the government.

Q2: What is the minimum and maximum investment?
A: Minimum ₹250 and maximum ₹1.5 lakh per financial year. The account matures after 21 years from opening.

Q3: Who can open an SSY account?
A: Parents/legal guardians of a girl child below 10 years can open the account. Maximum two accounts per family (three in case of twins/triplets).

Q4: What are the tax benefits?
A: Investments qualify for deduction under Section 80C. Interest earned and maturity amount are tax-free.

Q5: Can partial withdrawals be made?
A: Yes, up to 50% of the balance can be withdrawn after the girl turns 18, for higher education or marriage purposes.