Sukanya Yojana Random Deposit
Okay, why do you invest? So that you can earn more in form of interest earnings. Who doesn’t like more income. Nothing is sweeter than money! Now, Sukanya Samriddhi Yojana is one of the best investment options available in market. It offers a decent rate of interest and with a combination of simple and compounded growth rate, the end result of years of investment is always lucrative.
One of the best parts of Sukanya Yojana is that it allows flexible investments and hence, it is not mandatory to go for monthly or yearly or quarterly or half-yearly investments. Once can invest anytime during the year as long as the conditions of maximum number of allowed investments a year and maximum investment in a single year are not breached. Simply put, the scheme allows random investments. But how does a random investment work? This works exactly the same way in which monthly or yearly or any other form of investment works except that the fluctuations in interest earnings because of randomized investments are more. This may lead to lower maturity value or greater maturity value. We will explore the condition in the simple numerical example we will lay down in this article. But for the purpose of doing so, we will make a few assumptions:
- Interest rate remains fixed for entire account tenure of 21 years. Currently the interest offered is 8.6% and hence, we will use that in this example.
- We will assume that though the investor invests at different points in time throughout the year, the yearly investment will never cross INR 50,000 (remember, it is an assumption and hence, the aggregate investment amount may be greater than or lower than INR 50,000).
- The investor doesn’t apply for premature withdrawal.
- The account stays active for full 21 years.
- The investor invests for 14 years (maximum allowed).
- The investor never defaults on yearly investments. He always makes the minimum required investment in the account every year.
For the sake of simplicity, we will consider that the invests 5 times a year on the exact same months. However, this may not be true.
Example of Sukanya Yojana calculation with random deposit
Here:
Yearly interest: 8.6%
Monthly interest: 0.7% (approximation)
Aggregate yearly investment: INR 50,000 but made in 5 installments.
| Year 1 | |||
| Month | Deposit | Balance | Interest |
| Apr | 10,000 | 10,000 | 72 |
| May | 10,000 | 72 | |
| Jun | 10,000 | 72 | |
| Jul | 10,000 | 72 | |
| Aug | 20,000 | 30,000 | 215 |
| Sep | 30,000 | 215 | |
| Oct | 5,000 | 35,000 | 251 |
| Nov | 35,000 | 251 | |
| Dec | 10,000 | 45,000 | 323 |
| Jan | 45,000 | 323 | |
| Feb | 5,000 | 50,000 | 358 |
| Mar | 50,000 | 358 | |
| Year End Balance | 52,580 | 2,580 | |
| Year 2 | |||
| Month | Deposit | Balance | Interest |
| Apr | 10,000 | 62,580 | 448 |
| May | 62,580 | 448 | |
| Jun | 62,580 | 448 | |
| Jul | 62,580 | 448 | |
| Aug | 20,000 | 82,580 | 592 |
| Sep | 82,580 | 592 | |
| Oct | 5,000 | 87,580 | 628 |
| Nov | 87,580 | 628 | |
| Dec | 10,000 | 97,580 | 699 |
| Jan | 97,580 | 699 | |
| Feb | 5,000 | 102,580 | 735 |
| Mar | 102,580 | 735 | |
| Year End Balance | 109,682 | 7,102 | |
| Year 3 | |||
| Month | Deposit | Balance | Interest |
| Apr | 10,000 | 119,682 | 858 |
| May | 119,682 | 858 | |
| Jun | 119,682 | 858 | |
| Jul | 119,682 | 858 | |
| Aug | 20,000 | 139,682 | 1,001 |
| Sep | 139,682 | 1,001 | |
| Oct | 5,000 | 144,682 | 1,037 |
| Nov | 144,682 | 1,037 | |
| Dec | 10,000 | 154,682 | 1,109 |
| Jan | 154,682 | 1,109 | |
| Feb | 5,000 | 159,682 | 1,144 |
| Mar | 159,682 | 1,144 | |
| Year End Balance | 171,695 | 12,013 | |
| Year 4 | |||
| Month | Deposit | Balance | Interest |
| Apr | 10,000 | 181,695 | 1,302 |
| May | 181,695 | 1,302 | |
| Jun | 181,695 | 1,302 | |
| Jul | 181,695 | 1,302 | |
| Aug | 20,000 | 201,695 | 1,445 |
| Sep | 201,695 | 1,445 | |
| Oct | 5,000 | 206,695 | 1,481 |
| Nov | 206,695 | 1,481 | |
| Dec | 10,000 | 216,695 | 1,553 |
| Jan | 216,695 | 1,553 | |
| Feb | 5,000 | 221,695 | 1,589 |
| Mar | 221,695 | 1,589 | |
| Year End Balance | 239,040 | 17,346 | |
| Year 5 | |||
| Month | Deposit | Balance | Interest |
| Apr | 10,000 | 249,040 | 1,785 |
| May | 249,040 | 1,785 | |
| Jun | 249,040 | 1,785 | |
| Jul | 249,040 | 1,785 | |
| Aug | 20,000 | 269,040 | 1,928 |
| Sep | 269,040 | 1,928 | |
| Oct | 5,000 | 274,040 | 1,964 |
| Nov | 274,040 | 1,964 | |
| Dec | 10,000 | 284,040 | 2,036 |
| Jan | 284,040 | 2,036 | |
| Feb | 5,000 | 289,040 | 2,071 |
| Mar | 289,040 | 2,071 | |
| Year End Balance | 312,178 | 23,137 | |
| Year 6 | |||
| Month | Deposit | Balance | Interest |
| Apr | 10,000 | 322,178 | 2,309 |
| May | 322,178 | 2,309 | |
| Jun | 322,178 | 2,309 | |
| Jul | 322,178 | 2,309 | |
| Aug | 20,000 | 342,178 | 2,452 |
| Sep | 342,178 | 2,452 | |
| Oct | 5,000 | 347,178 | 2,488 |
| Nov | 347,178 | 2,488 | |
| Dec | 10,000 | 357,178 | 2,560 |
| Jan | 357,178 | 2,560 | |
| Feb | 5,000 | 362,178 | 2,596 |
| Mar | 362,178 | 2,596 | |
| Year End Balance | 391,605 | 29,427 | |
| Year 7 | |||
| Month | Deposit | Balance | Interest |
| Apr | 10,000 | 401,605 | 2,878 |
| May | 401,605 | 2,878 | |
| Jun | 401,605 | 2,878 | |
| Jul | 401,605 | 2,878 | |
| Aug | 20,000 | 421,605 | 3,022 |
| Sep | 421,605 | 3,022 | |
| Oct | 5,000 | 426,605 | 3,057 |
| Nov | 426,605 | 3,057 | |
| Dec | 10,000 | 436,605 | 3,129 |
| Jan | 436,605 | 3,129 | |
| Feb | 5,000 | 441,605 | 3,165 |
| Mar | 441,605 | 3,165 | |
| Year End Balance | 477,863 | 36,258 | |
| Year 8 | |||
| Month | Deposit | Balance | Interest |
| Apr | 10,000 | 487,863 | 3,496 |
| May | 487,863 | 3,496 | |
| Jun | 487,863 | 3,496 | |
| Jul | 487,863 | 3,496 | |
| Aug | 20,000 | 507,863 | 3,640 |
| Sep | 507,863 | 3,640 | |
| Oct | 5,000 | 512,863 | 3,676 |
| Nov | 512,863 | 3,676 | |
| Dec | 10,000 | 522,863 | 3,747 |
| Jan | 522,863 | 3,747 | |
| Feb | 5,000 | 527,863 | 3,783 |
| Mar | 527,863 | 3,783 | |
| Year End Balance | 571,539 | 43,676 | |
| Year 9 | |||
| Month | Deposit | Balance | Interest |
| Apr | 10,000 | 581,539 | 4,168 |
| May | 581,539 | 4,168 | |
| Jun | 581,539 | 4,168 | |
| Jul | 581,539 | 4,168 | |
| Aug | 20,000 | 601,539 | 4,311 |
| Sep | 601,539 | 4,311 | |
| Oct | 5,000 | 606,539 | 4,347 |
| Nov | 606,539 | 4,347 | |
| Dec | 10,000 | 616,539 | 4,419 |
| Jan | 616,539 | 4,419 | |
| Feb | 5,000 | 621,539 | 4,454 |
| Mar | 621,539 | 4,454 | |
| Year End Balance | 673,272 | 51,732 | |
| Year 10 | |||
| Month | Deposit | Balance | Interest |
| Apr | 10,000 | 683,272 | 4,897 |
| May | 683,272 | 4,897 | |
| Jun | 683,272 | 4,897 | |
| Jul | 683,272 | 4,897 | |
| Aug | 20,000 | 703,272 | 5,040 |
| Sep | 703,272 | 5,040 | |
| Oct | 5,000 | 708,272 | 5,076 |
| Nov | 708,272 | 5,076 | |
| Dec | 10,000 | 718,272 | 5,148 |
| Jan | 718,272 | 5,148 | |
| Feb | 5,000 | 723,272 | 5,183 |
| Mar | 723,272 | 5,183 | |
| Year End Balance | 783,753 | 60,481 | |
| Year 11 | |||
| Month | Deposit | Balance | Interest |
| Apr | 10,000 | 793,753 | 5,689 |
| May | 793,753 | 5,689 | |
| Jun | 793,753 | 5,689 | |
| Jul | 793,753 | 5,689 | |
| Aug | 20,000 | 813,753 | 5,832 |
| Sep | 813,753 | 5,832 | |
| Oct | 5,000 | 818,753 | 5,868 |
| Nov | 818,753 | 5,868 | |
| Dec | 10,000 | 828,753 | 5,939 |
| Jan | 828,753 | 5,939 | |
| Feb | 5,000 | 833,753 | 5,975 |
| Mar | 833,753 | 5,975 | |
| Year End Balance | 903,736 | 69,983 | |
| Year 12 | |||
| Month | Deposit | Balance | Interest |
| Apr | 10,000 | 913,736 | 6,548 |
| May | 913,736 | 6,548 | |
| Jun | 913,736 | 6,548 | |
| Jul | 913,736 | 6,548 | |
| Aug | 20,000 | 933,736 | 6,692 |
| Sep | 933,736 | 6,692 | |
| Oct | 5,000 | 938,736 | 6,728 |
| Nov | 938,736 | 6,728 | |
| Dec | 10,000 | 948,736 | 6,799 |
| Jan | 948,736 | 6,799 | |
| Feb | 5,000 | 953,736 | 6,835 |
| Mar | 953,736 | 6,835 | |
| Year End Balance | 1,034,037 | 80,301 | |
| Year 13 | |||
| Month | Deposit | Balance | Interest |
| Apr | 10,000 | 1,044,037 | 7,482 |
| May | 1,044,037 | 7,482 | |
| Jun | 1,044,037 | 7,482 | |
| Jul | 1,044,037 | 7,482 | |
| Aug | 20,000 | 1,064,037 | 7,626 |
| Sep | 1,064,037 | 7,626 | |
| Oct | 5,000 | 1,069,037 | 7,661 |
| Nov | 1,069,037 | 7,661 | |
| Dec | 10,000 | 1,079,037 | 7,733 |
| Jan | 1,079,037 | 7,733 | |
| Feb | 5,000 | 1,084,037 | 7,769 |
| Mar | 1,084,037 | 7,769 | |
| Year End Balance | 1,175,544 | 91,507 | |
| Year 14 | |||
| Month | Deposit | Balance | Interest |
| Apr | 10,000 | 1,185,544 | 8,496 |
| May | 1,185,544 | 8,496 | |
| Jun | 1,185,544 | 8,496 | |
| Jul | 1,185,544 | 8,496 | |
| Aug | 20,000 | 1,205,544 | 8,640 |
| Sep | 1,205,544 | 8,640 | |
| Oct | 5,000 | 1,210,544 | 8,676 |
| Nov | 1,210,544 | 8,676 | |
| Dec | 10,000 | 1,220,544 | 8,747 |
| Jan | 1,220,544 | 8,747 | |
| Feb | 5,000 | 1,225,544 | 8,783 |
| Mar | 1,225,544 | 8,783 | |
| Year End Balance | 1,329,221 | 103,677 | |
| Year 15 | |||
| Month | Deposit | Balance | Interest |
| Apr | 0 | 1,329,221 | 9,526 |
| May | 0 | 1,329,221 | 9,526 |
| Jun | 0 | 1,329,221 | 9,526 |
| Jul | 0 | 1,329,221 | 9,526 |
| Aug | 0 | 1,329,221 | 9,526 |
| Sep | 0 | 1,329,221 | 9,526 |
| Oct | 0 | 1,329,221 | 9,526 |
| Nov | 0 | 1,329,221 | 9,526 |
| Dec | 0 | 1,329,221 | 9,526 |
| Jan | 0 | 1,329,221 | 9,526 |
| Feb | 0 | 1,329,221 | 9,526 |
| Mar | 0 | 1,329,221 | 9,526 |
| Year End Balance | 1,443,534 | 114,313 | |
| Year 16 | |||
| Month | Deposit | Balance | Interest |
| Apr | 0 | 1,443,534 | 10,345 |
| May | 0 | 1,443,534 | 10,345 |
| Jun | 0 | 1,443,534 | 10,345 |
| Jul | 0 | 1,443,534 | 10,345 |
| Aug | 0 | 1,443,534 | 10,345 |
| Sep | 0 | 1,443,534 | 10,345 |
| Oct | 0 | 1,443,534 | 10,345 |
| Nov | 0 | 1,443,534 | 10,345 |
| Dec | 0 | 1,443,534 | 10,345 |
| Jan | 0 | 1,443,534 | 10,345 |
| Feb | 0 | 1,443,534 | 10,345 |
| Mar | 0 | 1,443,534 | 10,345 |
| Year End Balance | 1,567,678 | 124,144 | |
| Year 17 | |||
| Month | Deposit | Balance | Interest |
| Apr | 0 | 1,567,678 | 11,235 |
| May | 0 | 1,567,678 | 11,235 |
| Jun | 0 | 1,567,678 | 11,235 |
| Jul | 0 | 1,567,678 | 11,235 |
| Aug | 0 | 1,567,678 | 11,235 |
| Sep | 0 | 1,567,678 | 11,235 |
| Oct | 0 | 1,567,678 | 11,235 |
| Nov | 0 | 1,567,678 | 11,235 |
| Dec | 0 | 1,567,678 | 11,235 |
| Jan | 0 | 1,567,678 | 11,235 |
| Feb | 0 | 1,567,678 | 11,235 |
| Mar | 0 | 1,567,678 | 11,235 |
| Year End Balance | 1,702,498 | 134,820 | |
| Year 18 | |||
| Month | Deposit | Balance | Interest |
| Apr | 0 | 1,702,498 | 12,201 |
| May | 0 | 1,702,498 | 12,201 |
| Jun | 0 | 1,702,498 | 12,201 |
| Jul | 0 | 1,702,498 | 12,201 |
| Aug | 0 | 1,702,498 | 12,201 |
| Sep | 0 | 1,702,498 | 12,201 |
| Oct | 0 | 1,702,498 | 12,201 |
| Nov | 0 | 1,702,498 | 12,201 |
| Dec | 0 | 1,702,498 | 12,201 |
| Jan | 0 | 1,702,498 | 12,201 |
| Feb | 0 | 1,702,498 | 12,201 |
| Mar | 0 | 1,702,498 | 12,201 |
| Year End Balance | 1,848,913 | 146,415 | |
| Year 19 | |||
| Month | Deposit | Balance | Interest |
| Apr | 0 | 1,848,913 | 13,251 |
| May | 0 | 1,848,913 | 13,251 |
| Jun | 0 | 1,848,913 | 13,251 |
| Jul | 0 | 1,848,913 | 13,251 |
| Aug | 0 | 1,848,913 | 13,251 |
| Sep | 0 | 1,848,913 | 13,251 |
| Oct | 0 | 1,848,913 | 13,251 |
| Nov | 0 | 1,848,913 | 13,251 |
| Dec | 0 | 1,848,913 | 13,251 |
| Jan | 0 | 1,848,913 | 13,251 |
| Feb | 0 | 1,848,913 | 13,251 |
| Mar | 0 | 1,848,913 | 13,251 |
| Year End Balance | 2,007,920 | 159,007 | |
| Year 20 | |||
| Month | Deposit | Balance | Interest |
| Apr | 0 | 2,007,920 | 14,390 |
| May | 0 | 2,007,920 | 14,390 |
| Jun | 0 | 2,007,920 | 14,390 |
| Jul | 0 | 2,007,920 | 14,390 |
| Aug | 0 | 2,007,920 | 14,390 |
| Sep | 0 | 2,007,920 | 14,390 |
| Oct | 0 | 2,007,920 | 14,390 |
| Nov | 0 | 2,007,920 | 14,390 |
| Dec | 0 | 2,007,920 | 14,390 |
| Jan | 0 | 2,007,920 | 14,390 |
| Feb | 0 | 2,007,920 | 14,390 |
| Mar | 0 | 2,007,920 | 14,390 |
| Year End Balance | 2,180,601 | 172,681 | |
| Year 21 | |||
| Month | Deposit | Balance | Interest |
| Apr | 0 | 2,180,601 | 15,628 |
| May | 0 | 2,180,601 | 15,628 |
| Jun | 0 | 2,180,601 | 15,628 |
| Jul | 0 | 2,180,601 | 15,628 |
| Aug | 0 | 2,180,601 | 15,628 |
| Sep | 0 | 2,180,601 | 15,628 |
| Oct | 0 | 2,180,601 | 15,628 |
| Nov | 0 | 2,180,601 | 15,628 |
| Dec | 0 | 2,180,601 | 15,628 |
| Jan | 0 | 2,180,601 | 15,628 |
| Feb | 0 | 2,180,601 | 15,628 |
| Mar | 0 | 2,180,601 | 15,628 |
| Year End Balance | 2,368,132 | 187,532 | |
In the above example we notice that the investment amount never crosses INR 50,000 a year and it is invested in 5 installments. The investor can actually invest more number of times if desired or in different months than as shown in the example.
What we wanted to show here is that with investments broken down into smaller amounts at random points in time, the total maturity value is lesser than the maturity value that is attained when INR 50,000 is invested at once at the beginning of the year (please refer to our example of yearly deposits).
This decline in maturity value happens here because of the variations in interest earnings. The maturity amount will actually depend on a number of factors like:
- Frequency of investment.
- Actual amount invested (even if invested randomly).
- Prevailing interest rate (interest rate will change every quarter).
Also, since there is an option of compounded growth once every year, the amount invested at the beginning of the fiscal year will make a major difference. The bigger the amount invested, the bigger will be the compounded growth. This will then reflect in bigger interest earnings every subsequent month because the first investment will determine the overall size of the account balance.
Even in this case, you will notice that the overall investment grows by about 3.4 times. This is quite a significant growth and since Sukanya Samriddhi Yojana is government backed, it will be very safe!
In case you want to do experiments with different investment amount at different times during the year, feel free to download the excel calculator and change the investment values or interest rate value to see how it will work.
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