You don't need a large sum of money to start saving for your daughter's bright future. By investing just ₹1,200 each month , you can gradually build a substantial corpus through the Sukanya Samriddhi Yojana (SSY). This translates to ₹14,400 annually. Regular investments over 15 years will bring your total deposit to ₹216,000. After that, you won't need to make any additional deposits until the 21-year plan term is complete, and the deposit will continue to earn interest.

This means that starting with a small amount can create a substantial corpus for your daughter over the long term. At an annual interest rate of 8.2%, saving ₹1,200 every month can create a corpus of approximately ₹6.90 lakh, of which approximately ₹4.74 lakh will come from interest. Keep in mind that the government may change the SSY interest rate from time to time, so the actual amount may vary.

Complete calculation for ₹1,200 per month

If you deposit ₹1,200 every month:
Monthly investment: ₹1,200
Annual investment: ₹14,400
Total investment in 15 years: ₹2,16,000
Estimated interest: approximately ₹4,74,000
Estimated corpus after 21 years: approximately ₹6,90,000
This estimate is based on monthly investment and a constant interest rate of 8.2%.

Deposits will have to be made for only 15 years

With SSY, you don't need to make monthly deposits for 21 years. In this example, you would deposit ₹1,200 every month for 15 years. After that, you won't make any new investments for the next six years, but your account will continue to earn interest. This is a long-term benefit. The amount may seem small initially, but over time, interest on interest accumulates, causing the fund to grow.

How will you create a fund of ₹6.90 lakh for your daughter?

Suppose you open an SSY account around the time of your daughter's birth and start depositing ₹1,200 every month. Your total investment over 15 years will be ₹2.16 lakh. After that, you stop depositing. If the interest rate remains at 8.2% throughout, the estimated amount at the end of the 21-year period could be around ₹6.90 lakh. This means you can earn an additional interest of approximately ₹4.74 lakh on the amount deposited.

Who can open an SSY account?

Parents or legal guardians can open a Sukanya Samriddhi Account in the name of a girl child under the age of 10. The minimum deposit allowed under this scheme is ₹250 and the maximum is ₹1.50 lakh. Therefore, even families who cannot afford to save large sums each month can find it easy to start with ₹1,200 per month.

Withdrawal rules apply

Withdrawal of the entire amount is not permitted under this scheme. According to the rules, a small amount is allowed for higher education after the girl turns 18. The full amount is disbursed after the scheme's term is over. By leveraging small savings, long-term savings, and compounding, you can create a fund of approximately ₹6.90 lakh for your daughter's future by depositing just ₹1,200 each month.

PC; Rochak Khabre