India is a developing country with a lot of progressing women. To further encourage them, the government and other organizations are focusing more on rearing girl children and building up their careers. Hence, to do this, the more important step is creating awareness among the common mass. In addition, the government enforces laws and offers different schemes to help all underprivileged girls.

One of these effective schemes is Sukanya Samriddhi Yojana. Although the government has fixed the interest rate for Sukanya Samriddhi Yojana, it gets revised every quarter.

Originally a part of the ‘Beti Bachao, Beti Padhao’ movement of the Indian government, Sukanya Samriddhi Yojana is a small deposit scheme for the financial needs of a girl child.

Parents can open a Sukanya account right after the birth of a girl child. The chances of opening this account remain till the girl child turns 10. Here one can deposit from ₹ 250 to ₹ 1.5 lahks per financial year.

This account remains active till 21 years from its starting. However, in case of any emergency, such as a sudden need for money for educational purposes or marriage, you can withdraw 50% of the amount after the girl child turns 18.

The documents required to open this account are -

• Birth certificate of the girl child
• Identity proof of the depositor
• Residency proof of the depositor

There are certain rules to opening an account. These are -

• You can open only one account per girl child.
• Only the legal guardian can open the account.
• You have to open the account in the name of the girl child in any notified post office or bank.
• A minimum of ₹ 250 should be deposited in each financial year.

Like any other government scheme, the Sukanya Samriddhi Yojana account should contain the minimum balance. Otherwise, this account may turn into a default account. Hence, the problem with the default account is the account cannot be revived after 15 years.

Sukanya Samriddhi Yojana calculator gives the total maturity amount concerning the interest rate and tenure plan based on the SSY current interest rate. You need to put the necessary information on the tool, for example, the interest rate, yearly contribution, and the girl child’s age. Through different assumptions, the SSY calculator makes the calculation. These are,

• The investment of the investors per financial year
• If there is no deposit made for a certain period, the SSY calculator calculates interest based on the earlier deposits
• The interest rate remains constant throughout the scheme
• Considers whether the deposit has been made on a yearly or monthly basis

Hence, there is a formula for calculating the interest rate of Sukanya Samriddhi Yojana. This is, A = P(r/n+1) ^ nt. Here,

A denotes compound interest rate

P stands for the principal amount

r indicates the rate of interest

n is for the number of compounding interests in a particular financial year

Lastly, t refers to the time or number of years

Suppose Mrs. Khemka deposits a yearly investment of ₹ 50,000 in Sukanya Samriddhi Yojana. She continues investing for 15 years and does not withdraw anything before reaching 21. Let’s see the calculation.