Sukanya Samriddhi Yojana: ₹5,000 monthly investment could grow to ₹27–28 lakh - here is how

For parents looking to build a long-term fund for their daughter, the Sukanya Samriddhi Yojana (SSY) offers a government-backed savings option with the benefit of annual compounding. The scheme currently carries an 8.2% annual interest rate, with rates reviewed by the government every quarter.

That is why it is essential for aspiring investors to understand the salient features of the SSY scheme , plan their investments, and reap its benefits to support their daughters financially.

So, what happens if you invest ₹ 5,000 every month in this scheme? Let us check the scheme's calculations and other features that can help aspiring investors plan their investments better.

A ₹ 5,000 monthly contribution amounts to ₹ 60,000 a year, i.e., in 12 months. As per the SSY rules, deposits must be made for 15 years, and the account matures 21 years from the date of opening. Furthermore, the money continues to earn interest during the remaining six years even though no further contributions are required. The interest is compounded annually in this small savings scheme.

Assuming that the current 8.2% rate remains unchanged throughout the investment period, an indicative calculation is:

It is vital to note that the exact amount can vary depending entirely on the applicable interest rate declared during the 21-year period and the timing of deposits.

An SSY account can be opened in the name of a girl child who is below 10 years of age, by her parent or legal guardian. The minimum annual deposit is ₹ 250, while the maximum is ₹ 1.5 lakh.

The scheme also offers tax benefits under Section 80C , subject to applicable tax rules. Partial withdrawals for higher education are permitted under specified conditions, generally after the girl turns 18 or passes Class 10. These conditions are subject to changes; proper due diligence is important before proceeding with any investments.

Therefore, ₹ 5,000 per month invested in the SSY scheme could build a corpus of around ₹ 27–28 lakh at maturity if the current 8.2% interest rate were maintained throughout. Since SSY interest rates are revised periodically, the figure is an illustration rather than a guaranteed maturity amount.

Finally, before making any investments, it is prudent to have a clear discussion with a certified financial advisor to ensure that your investments are backed by professional insights and that your asset allocation can be planned meaningfully in line with your long-term financial objectives.

Disclaimer: This calculation is for illustration only and assumes an 8.2% interest rate. Actual returns may vary as SSY rates are revised periodically. Investors should verify the latest scheme rules and consult a certified financial adviser before investing.

Shivam writes on personal finance, equity markets, and mutual funds. He has previously contributed to several leading publications, including Moneycontrol. He can be reached at shivam.shukla@htdigital.in

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