Sukanya Samriddhi Yojana Yearly Deposit

Sukanya Samriddhi Yojana Yearly Deposit

We will deliberately skip the intro part where we say a few words about Sukanya Samriddhi Yojana. We know that you are already aware of those stuff. So, we will no further bug you with the details or the summary. What we are interested in here is to know how yearly deposits work. Alternately, we can rephrase the question as: “if we deposit say, INR 50,000 a year, what will be the amount we get at maturity?” Isn’t that the thing you are most interested about? Of course you are! Everyone wants to know the absolute growth in invested money upon maturity.

We will take a look at this using a numerical example. For the purpose of setting up the example, we need to make a few assumptions. Why assumptions? That’s because it is literally not possible to include everything in a numerical example. The government keeps changing terms and conditions of the Yojana and hence, updating every single thing in a single numerical example will make the example extremely complex. We want to avoid complexity and give you an easy-to-understand illustration. You can keep changing a few parameters to include the changes the government comes up with over time.

So, here are the assumptions:

  • The interest rate for the Yojana is fixed at 8.60% yearly. It is not changed throughout the scheme tenure (simply put, we are excluding the feature where government changes the interest rate every quarter but we are working with the current offered rate of 8.60% yearly).
  • There are no withdrawal requests prematurely.
  • Investments are made only once every year at the beginning of the fiscal year.
  • No more than INR 50,000 is invested in a year.
  • All 14 years of investments are made.
  • The account naturally closes at the end of 21 years from the date when the account was opened. That is, the account runs its full course and completes the tenure.
  • The account doesn’t go dormant even once during the full tenure and hence, no penalties are attracted for reactivation of the account.

Now that we have the assumptions in place, let us take a look at the numerical example that will explain how the yearly investments grow under this scheme.

An example of Sukanya Yojana calculation with yearly deposit

In the example below:

Yearly interest: 8.6%

Monthly interest: 0.7% (approximately). We will use monthly interest value for interest calculations every month.

Yearly deposit: INR 50,000 – deposited at the beginning of every financial year.

Year 1
MonthDepositBalanceInterest
Apr50,00050,000358
May50,000358
Jun50,000358
Jul50,000358
Aug50,000358
Sep50,000358
Oct50,000358
Nov50,000358
Dec50,000358
Jan50,000358
Feb50,000358
Mar50,000358
Year End Balance54,3004,300

 

Year 2
MonthDepositBalanceInterest
Apr50,000104,300747
May104,300747
Jun104,300747
Jul104,300747
Aug104,300747
Sep104,300747
Oct104,300747
Nov104,300747
Dec104,300747
Jan104,300747
Feb104,300747
Mar104,300747
Year End Balance113,2708,970

 

Year 3
MonthDepositBalanceInterest
Apr50,000163,2701,170
May163,2701,170
Jun163,2701,170
Jul163,2701,170
Aug163,2701,170
Sep163,2701,170
Oct163,2701,170
Nov163,2701,170
Dec163,2701,170
Jan163,2701,170
Feb163,2701,170
Mar163,2701,170
Year End Balance177,31114,041

 

Year 4
MonthDepositBalanceInterest
Apr50,000227,3111,629
May227,3111,629
Jun227,3111,629
Jul227,3111,629
Aug227,3111,629
Sep227,3111,629
Oct227,3111,629
Nov227,3111,629
Dec227,3111,629
Jan227,3111,629
Feb227,3111,629
Mar227,3111,629
Year End Balance246,86019,549

 

Year 5
MonthDepositBalanceInterest
Apr50,000296,8602,127
May296,8602,127
Jun296,8602,127
Jul296,8602,127
Aug296,8602,127
Sep296,8602,127
Oct296,8602,127
Nov296,8602,127
Dec296,8602,127
Jan296,8602,127
Feb296,8602,127
Mar296,8602,127
Year End Balance322,39025,530

 

Year 6
MonthDepositBalanceInterest
Apr50,000372,3902,669
May372,3902,669
Jun372,3902,669
Jul372,3902,669
Aug372,3902,669
Sep372,3902,669
Oct372,3902,669
Nov372,3902,669
Dec372,3902,669
Jan372,3902,669
Feb372,3902,669
Mar372,3902,669
Year End Balance404,41532,026

 

Year 7
MonthDepositBalanceInterest
Apr50,000454,4153,257
May454,4153,257
Jun454,4153,257
Jul454,4153,257
Aug454,4153,257
Sep454,4153,257
Oct454,4153,257
Nov454,4153,257
Dec454,4153,257
Jan454,4153,257
Feb454,4153,257
Mar454,4153,257
Year End Balance493,49539,080

 

Year 8
MonthDepositBalanceInterest
Apr50,000543,4953,895
May543,4953,895
Jun543,4953,895
Jul543,4953,895
Aug543,4953,895
Sep543,4953,895
Oct543,4953,895
Nov543,4953,895
Dec543,4953,895
Jan543,4953,895
Feb543,4953,895
Mar543,4953,895
Year End Balance590,23546,741

 

Year 9
MonthDepositBalanceInterest
Apr50,000640,2354,588
May640,2354,588
Jun640,2354,588
Jul640,2354,588
Aug640,2354,588
Sep640,2354,588
Oct640,2354,588
Nov640,2354,588
Dec640,2354,588
Jan640,2354,588
Feb640,2354,588
Mar640,2354,588
Year End Balance695,29655,060

 

Year 10
MonthDepositBalanceInterest
Apr50,000745,2965,341
May745,2965,341
Jun745,2965,341
Jul745,2965,341
Aug745,2965,341
Sep745,2965,341
Oct745,2965,341
Nov745,2965,341
Dec745,2965,341
Jan745,2965,341
Feb745,2965,341
Mar745,2965,341
Year End Balance809,39164,095

 

Year 11
MonthDepositBalanceInterest
Apr50,000859,3916,159
May859,3916,159
Jun859,3916,159
Jul859,3916,159
Aug859,3916,159
Sep859,3916,159
Oct859,3916,159
Nov859,3916,159
Dec859,3916,159
Jan859,3916,159
Feb859,3916,159
Mar859,3916,159
Year End Balance933,29973,908

 

Year 12
MonthDepositBalanceInterest
Apr50,000983,2997,047
May983,2997,047
Jun983,2997,047
Jul983,2997,047
Aug983,2997,047
Sep983,2997,047
Oct983,2997,047
Nov983,2997,047
Dec983,2997,047
Jan983,2997,047
Feb983,2997,047
Mar983,2997,047
Year End Balance1,067,86284,564

 

Year 13
MonthDepositBalanceInterest
Apr50,0001,117,8628,011
May1,117,8628,011
Jun1,117,8628,011
Jul1,117,8628,011
Aug1,117,8628,011
Sep1,117,8628,011
Oct1,117,8628,011
Nov1,117,8628,011
Dec1,117,8628,011
Jan1,117,8628,011
Feb1,117,8628,011
Mar1,117,8628,011
Year End Balance1,213,99996,136

 

Year 14
MonthDepositBalanceInterest
Apr50,0001,263,9999,059
May1,263,9999,059
Jun1,263,9999,059
Jul1,263,9999,059
Aug1,263,9999,059
Sep1,263,9999,059
Oct1,263,9999,059
Nov1,263,9999,059
Dec1,263,9999,059
Jan1,263,9999,059
Feb1,263,9999,059
Mar1,263,9999,059
Year End Balance1,372,703108,704

 

Year 15
MonthDepositBalanceInterest
Apr01,372,7039,838
May01,372,7039,838
Jun01,372,7039,838
Jul01,372,7039,838
Aug01,372,7039,838
Sep01,372,7039,838
Oct01,372,7039,838
Nov01,372,7039,838
Dec01,372,7039,838
Jan01,372,7039,838
Feb01,372,7039,838
Mar01,372,7039,838
Year End Balance1,490,755118,052

 

Year 16
MonthDepositBalanceInterest
Apr01,490,75510,684
May01,490,75510,684
Jun01,490,75510,684
Jul01,490,75510,684
Aug01,490,75510,684
Sep01,490,75510,684
Oct01,490,75510,684
Nov01,490,75510,684
Dec01,490,75510,684
Jan01,490,75510,684
Feb01,490,75510,684
Mar01,490,75510,684
Year End Balance1,618,960128,205

 

Year 17
MonthDepositBalanceInterest
Apr01,618,96011,603
May01,618,96011,603
Jun01,618,96011,603
Jul01,618,96011,603
Aug01,618,96011,603
Sep01,618,96011,603
Oct01,618,96011,603
Nov01,618,96011,603
Dec01,618,96011,603
Jan01,618,96011,603
Feb01,618,96011,603
Mar01,618,96011,603
Year End Balance1,758,190139,231

 

Year 18
MonthDepositBalanceInterest
Apr01,758,19012,600
May01,758,19012,600
Jun01,758,19012,600
Jul01,758,19012,600
Aug01,758,19012,600
Sep01,758,19012,600
Oct01,758,19012,600
Nov01,758,19012,600
Dec01,758,19012,600
Jan01,758,19012,600
Feb01,758,19012,600
Mar01,758,19012,600
Year End Balance1,909,395151,204

 

Year 19
MonthDepositBalanceInterest
Apr01,909,39513,684
May01,909,39513,684
Jun01,909,39513,684
Jul01,909,39513,684
Aug01,909,39513,684
Sep01,909,39513,684
Oct01,909,39513,684
Nov01,909,39513,684
Dec01,909,39513,684
Jan01,909,39513,684
Feb01,909,39513,684
Mar01,909,39513,684
Year End Balance2,073,603164,208

 

Year 20
MonthDepositBalanceInterest
Apr02,073,60314,861
May02,073,60314,861
Jun02,073,60314,861
Jul02,073,60314,861
Aug02,073,60314,861
Sep02,073,60314,861
Oct02,073,60314,861
Nov02,073,60314,861
Dec02,073,60314,861
Jan02,073,60314,861
Feb02,073,60314,861
Mar02,073,60314,861
Year End Balance2,251,933178,330

 

Year 21
MonthDepositBalanceInterest
Apr02,251,93316,139
May02,251,93316,139
Jun02,251,93316,139
Jul02,251,93316,139
Aug02,251,93316,139
Sep02,251,93316,139
Oct02,251,93316,139
Nov02,251,93316,139
Dec02,251,93316,139
Jan02,251,93316,139
Feb02,251,93316,139
Mar02,251,93316,139
Year End Balance2,445,599193,666

In the above example, you will notice that the interest calculations are made monthly and the total interest earnings are added to the main account balance only once a year at the beginning of the financial year. This means that compounded growth takes place only once every year and for the rest of the year, the account keeps earning at simple interest rate.

The total investment made in the above example is: 14 x 50000 = 7,00,000 but on maturity, the account balance grows to INR 2,445,599. This is nearly 3.5 times the total invested amount. However, do remember that since interest rate will keep changing every quarter, the final balance upon maturity will differ for the exact same investment amount.

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