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[VIDEO] SSY Excel Calculator| SSY Interest Calculation with SSY Interest Rate| Sukanya Samriddhi Yojana

FinCalC January 08, 2021
Sukanya Samriddhi Yojana (SSY) is a savings scheme launched back in 2015 as a part of Government initiative Beti Bachao, Beti Padhao campaign. This scheme enables guardians to open a savings account for their girl child with an authorized commercial bank or India Post branch.
You can download Sukanya Samriddhi Yojana (SSY) Interest Excel Calculator for FREE.

The interest in Sukanya Samriddhi Yojana (SSY) is calculated in similar way compared to Public Provident Fund (PPF)

SSY Interest Excel Calculator Video:
Here is a video in which we will see how interest is calculated in your SSY Account using Excel Calculator with Examples:



As of 1st January 2021, SSY accounts offer 7.6% rate of interest. It also offers Tax benefits under Section 80C. A Sukanya Samriddhi Yojana calculator can help you determine the returns you receive as per the invested amount and tenure.


What is SSY:
Sukanya Samriddhi Yojana or SSY is a Government initiative to promote Beti Bachao Beti Padhao. According to this initiative, you can open a SSY account for a girl child at highest interest rates compared to Public Provident Fund, National Savings Certificate and Senior Citizens Savings Scheme

Deposits in this account are locked in for 21 years.

SSY Benefits & Features:
  • Attractive interest rate of 7.6%, that is fully exempt from tax under section 80C.
  • Minimum Rs. 1000 can be invested in one financial year (April to March)
  • Maximum investment of Rs. 1,50,000 can be made in one financial year (April to March)
  • If the minimum amount of Rs 250/- is not deposited in any financial year, a penalty of Rs 50/- will be charged
  • Deposits in an account can be made till completion of 14 years, from the date of opening of the account
  • The account shall mature on completion of 21 years from the date of opening of the account, provided that where the marriage of the account holder takes place before completion of such period of 21 years, the operation of the account shall not be permitted beyond the date of her marriage
  • Passbook will be issued to customers
  • Withdrawal Facility
  • To meet the financial requirements of the account holder for the purpose of higher education and marriage, account holder can avail partial withdrawal facility after attaining 18 years of age.
  • If the beneficiary is married before maturity of account, account has to be closed.
  • Monthly interest is calculated and compounding frequency is annual
  • You can open a maximum of 2 accounts in a family

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What is the Eligibility to open SSY Account:
  • Parents having girl child can open Sukanya Samriddhi Yojana (SSY) Account
  • Maximum of 2 accounts are allowed to be open in a family of 2 or more girls
  • The account can be opened by the guardian for a girl child of age below 10 years.

How Can I Use The Corpus Accumulated From SSY Contributions:
Upon reaching maturity, the entire corpus accumulated can be withdrawn by the girl child. This can be done after the following documents are produced:
  • Withdrawal application form
  • ID Proof and valid address proof
  • Citizenship documents
The corpus withdrawn can be used to meet the expenses of higher education of the girl child, provided she has cleared 10th Standard and reached 18 years of age. The amount can only be used to meet fee and admission charges. To prove that the amount is being utilized for educational purposes, the depositors are required to submit University admission documents as well as fee receipts.

Premature withdrawal to meet marriage expenses is allowed, provided the girl is 18 and above. The girl will be required to produce an affidavit that states that she is a major.


SSY Interest Calculation:
  • SSY interest is calculated on monthly basis
  • Compounding frequency is annual (which means you get more interest on already earned interest)
  • You earn interest for a month's deposits in that month itself, only when you deposit on or before 10th day of that month
  • If you deposit after 10th day of the month, you will earn interest from next month onwards
Let's see the interest calculation with the help of example:
Let's say you deposit Rs. 5000 in the month of April.
Based on annual interest rate of 7.6%, monthly interest will be 0.63%

To get the interest for the month of April, the interest formula is:
= interest rate * amount / 100
= 0.63% * 5000 / 100
= Rs. 31.66

This is the interest you will earn in the month of April when you deposit on or before 10th day of April. You earn same interest every month if you don't deposit in the rest of the year. Here is the screenshot of the SSY Excel Calculation for BEFORE 10th day:

Rs. 5000 deposited before 10th April in SSY

Rs. 5000 deposited Before 10th April in SSY

In case you deposit after 10th day of April, you will earn this interest from the month of May. Here is the screenshot of the SSY Excel Calculation for AFTER 10th day:

Rs. 5000 deposited After 10th April in SSY

Rs. 5000 deposited After 10th April in SSY

And when you deposit Rs. 5000 every month in a Financial Year from April to March, you get a total interest of Rs. 2470 in that FY which is than added to your total deposit of Rs. 60,000 making your Total Balance = Rs. 62,470

Rs. 5000 deposited every month in FY Before 10th in SSY

Rs. 5000 deposited every month in FY Before 10th in SSY

This Balance of Rs. 62,470 is than taken as the balance in next FY which earns more interest for you in succeeding years. In this way, compounding is done in SSY on yearly basis (you get more interest on already earned interest)

Compounding example in SSY

Compounding example in SSY

Important: As we can see, it is very important to know that if you deposit on or before 10th day of the month, you will start earning interest from that month onwards

Here's the video of PPF Interest Calculation:


SSY Income Tax Benefits:
  • Deposits made in SSY can be claimed under Section 80C to save income tax
  • Maximum of Rs. 1,50,000 can be claimed in Section 80C in a FY (Financial year) to save income tax
  • According to Budget 2020, you will have to opt for Old Income Tax Slab rates for your Income Tax Calculation to claim this deduction
  • New Income Tax Slab Rates doesn't allow you to claim any deduction
  • Also, the interest that you earn in SSY as seen in Excel Calculator is exempted from Income Tax
  • The total maturity amount that you'll receive upon completion of SSY tenure is completely exempted from Income Tax
  • This makes SSY (Sukanya Samriddhi Yojana) scheme fall under EEE (Exempt, Exempt, Exempt) category. That is, Deposits, Interest and Maturity amounts are all exempted from Income Tax

Final Thoughts:
  • SSY or Sukanya Samriddhi Yojana is one of the best Indian saving scheme
  • You can open maximum of 2 SSY account in a family of 2 or more girl childs, in the name of girl child
  • You get maximum guaranteed returns in this scheme compared to other schemes such as Public Provident Fund, National Savings Certificate, Senior Citizens Savings Scheme, and many others
  • Current interest rate of SSY for Jan 2021 to Mar 2021 quarter is 7.6% annually
  • You can claim the deposits under Section 80C and Save Income Tax using SSY if you choose Old Tax Slab Rates
  • This scheme falls under EEE category, which means, Deposits, Interest and Maturity Amount is exempted from Income Tax
  • You can download the SSY or Sukanya Samriddhi Yojana Excel Calculator that will help in calculating SSY interest based on your deposits


FAQs:

1. Who is eligible for a Sukanya Samriddhi Yojana Account?

Ans. Guardians can open an account on behalf of their girl child anytime between, when she is born and before she reaches the age of 10.

2. How many accounts can be created under SSY? 

Ans. Only one SSY account is permitted for a girl child. The number of accounts guardians can create is restricted to two for each of their girl children. Exceptions are only in case of twins or triplets.

3. What is the minimum amount required to open an SSY account?

Ans. Individuals can open an account with as low as Rs. 250. They also have to invest a minimum of Rs. 250 to keep the account active.

4. What happens when I do not make any deposits?

Ans. An SSY account is rendered inactive if you don’t make any deposits. However, you can revive your account by paying a penalty charge of Rs. 50.

5. What is the maximum amount that I can deposit in a year?

Ans. The maximum amount that you can deposit per year in a Sukanya Samriddhi Yojana account is Rs. 1.5 Lakh. 

6. What is the maturity period of an SSY account?

Ans. The maturity period of an SSY account is 21 years. However, you only have to make deposits for 14 years. The deposited corpus will earn interest between the 14th and 21st year. 

Note that an SSY account will be terminated once a girl reaches 21 years of age or gets married, whichever is earlier.

7. Does a Sukanya Samriddhi Yojana account provide income tax benefits? 

Ans. Yes, SSY accounts provide income tax benefit of up to Rs. 1.5 Lakh under Section 80C.

8. Can an accountholder prematurely withdraw from an SSY account? 

Ans. Yes. An account holder (the girl) will be able to withdraw from her account once she reaches 18 years of age. The account holder can only withdraw 50% of the accumulated amount once after she reaches this specified age only for the purpose of higher education.

9. Can an SSY account be closed before maturity?

Ans. Yes. A Sukanya Samriddhi Yojana account can be closed in the event of the account holder’s death or for the treatment of life-threatening diseases, the sanction of which needs to be authorized by the Central Government.

10. Are Interest and Maturity Amount in Sukanya Samriddhi Yojana (SSY) exempted from Income Tax?

Ans. Yes, SSY or Sukanya Samriddhi Yojana falls under EEE category, which means, your Deposits, Interest and Maturity Amount are exempted from Income Tax

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Examples used in Videos and Excel Calculators are for Illustration purpose. The creator of this channel or blog shall not be held responsible in any way by the user of this channel or blog information. Seeking professional help before taking any decision is advised.
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