Sukanya Samriddhi Account Interest Calculator

What is a Sukanya Samriddhi Account?

The Sukanya Samriddhi Account is a small deposit scheme launched by the Government of India in 2015. It's specifically designed for the girl child to help parents save for their daughter's education and marriage expenses.

Key features of the SSA include:

• Minimum deposit of ₹1,000 and maximum of ₹1,50,000 per financial year
• Interest rate of 7.6% per annum (as of 2023)
• Tax benefits under Section 80C of the Income Tax Act
• No withdrawal before the girl's marriage or until she attains the age of 18 years
• Maturity period of 21 years from the date of account opening

How the Sukanya Samriddhi Account Works

To open an SSA, you need to be the guardian of a girl child who is under 10 years of age. The account can be opened at any post office or authorized bank branch.

The account holder can deposit money in the account on a regular basis (monthly, quarterly, or annually) up to the maximum limit. The interest is calculated and credited to the account on a quarterly basis.

Interest Calculation

The interest on the SSA is calculated using the simple interest formula:

Where:

• Principal is the total amount deposited in the account
• Rate is the annual interest rate (7.6%)
• Time is the number of years the money is invested

The interest is compounded quarterly, but the calculator uses the simple interest method for easier understanding.

Example Calculation

Let's say you deposit ₹50,000 in your daughter's SSA account and leave it for 10 years with an annual interest rate of 7.6%.

Using the simple interest formula:

So, you would earn ₹38,000 in interest over 10 years, bringing your total to ₹88,000.