The 21-year confusion: When does Sukanya Samriddhi Yojna mature? Explained

New Delhi: Many parents who open a Sukanya Samriddhi Yojana (SSY) account for their daughter are unsure when it will mature. Those who open the account when their daughter is five years old or older often wonder whether they will receive the maturity amount when she turns 21 or whether they will have to wait until she turns 26. Here is what you need to know about the maturity date of an SSY account.

Who can open Sukanya Samriddhi Yojna account?

A Sukanya Samriddhi Account can be opened by a parent or legal guardian in the name of a girl child who is under 10 years old. The account can be opened at a post office or an authorised bank. It can also be transferred from one post office or bank to another anywhere in India. Investment in the Sukanya Samriddhi Yojana scheme is exempted under Section 80C of the Income Tax Act, 1961.

What is minimum and maximum deposit limit in Sukanya Samriddhi Yojna?

The SSY account can be opened with a minimum deposit of Rs 250 and a maximum deposit of Rs 1.5 lakh in a financial year. Deposits must be made for 15 years from the date the account is opened.

How much interest is provided on Sukanya Samriddhi Yojna deposit?

Under the SSY, your deposits earn a highly competitive, government-backed interest rate of 8.2 percent per annum. The interest is compounded anually which means you earn interest not only on your original deposit but also on all the interest you accumulated in previous years.

When does Sukanya Samriddhi Yojna mature?

The SSY account matures 21 years after the date it is opened. The account can be closed before the completion of 21 years for the marriage of the account holder after her attaining the age of 18 years. Withdrawal of up to a maximum of 50 percent of the amount is allowed for the purpose of education of the account holder.

When will Sukanya Samriddhi Yojna mature if account opened when child is 5 years old?

The maturity of SSY depends on the date it was opened and not the age of the girl child. The account matures 21 years after opening. For example, if you open the account when your daughter is 5 years old, it will mature when she turns 26. Deposits need to be made only for the first 15 years. After that the corpus continues to earn compound interest for the remaining six years without any additional deposits.

How much will you get after 21 years of opening Sukanya Samriddhi Yojna?

If you deposit Rs 60,000 every year for 15 years in the SSY, your total investment will be Rs 9 lakh. If the interest rate remains 8.2 percent per year then you could receive approximately Rs 28.75 lakh when the account matures after 21 years.

Here how your money grows over time

Total investment: Rs 9,00,000 (over 15 years)
Estimated interest earned: Rs 19,75,417
Total maturity value after 21 years: Rs 28,75,417

You only need to deposit money into the account for the first 15 years. The account matures 21 years after it is opened. Even after you stop making deposits, your savings will continue to earn interest for the remaining six years until maturity.