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 | |||
| Month | Deposit | Balance | Interest |
| Apr | 50,000 | 50,000 | 358 |
| May | 50,000 | 358 | |
| Jun | 50,000 | 358 | |
| Jul | 50,000 | 358 | |
| Aug | 50,000 | 358 | |
| Sep | 50,000 | 358 | |
| Oct | 50,000 | 358 | |
| Nov | 50,000 | 358 | |
| Dec | 50,000 | 358 | |
| Jan | 50,000 | 358 | |
| Feb | 50,000 | 358 | |
| Mar | 50,000 | 358 | |
| Year End Balance | 54,300 | 4,300 | |
| Year 2 | |||
| Month | Deposit | Balance | Interest |
| Apr | 50,000 | 104,300 | 747 |
| May | 104,300 | 747 | |
| Jun | 104,300 | 747 | |
| Jul | 104,300 | 747 | |
| Aug | 104,300 | 747 | |
| Sep | 104,300 | 747 | |
| Oct | 104,300 | 747 | |
| Nov | 104,300 | 747 | |
| Dec | 104,300 | 747 | |
| Jan | 104,300 | 747 | |
| Feb | 104,300 | 747 | |
| Mar | 104,300 | 747 | |
| Year End Balance | 113,270 | 8,970 | |
| Year 3 | |||
| Month | Deposit | Balance | Interest |
| Apr | 50,000 | 163,270 | 1,170 |
| May | 163,270 | 1,170 | |
| Jun | 163,270 | 1,170 | |
| Jul | 163,270 | 1,170 | |
| Aug | 163,270 | 1,170 | |
| Sep | 163,270 | 1,170 | |
| Oct | 163,270 | 1,170 | |
| Nov | 163,270 | 1,170 | |
| Dec | 163,270 | 1,170 | |
| Jan | 163,270 | 1,170 | |
| Feb | 163,270 | 1,170 | |
| Mar | 163,270 | 1,170 | |
| Year End Balance | 177,311 | 14,041 | |
| Year 4 | |||
| Month | Deposit | Balance | Interest |
| Apr | 50,000 | 227,311 | 1,629 |
| May | 227,311 | 1,629 | |
| Jun | 227,311 | 1,629 | |
| Jul | 227,311 | 1,629 | |
| Aug | 227,311 | 1,629 | |
| Sep | 227,311 | 1,629 | |
| Oct | 227,311 | 1,629 | |
| Nov | 227,311 | 1,629 | |
| Dec | 227,311 | 1,629 | |
| Jan | 227,311 | 1,629 | |
| Feb | 227,311 | 1,629 | |
| Mar | 227,311 | 1,629 | |
| Year End Balance | 246,860 | 19,549 | |
| Year 5 | |||
| Month | Deposit | Balance | Interest |
| Apr | 50,000 | 296,860 | 2,127 |
| May | 296,860 | 2,127 | |
| Jun | 296,860 | 2,127 | |
| Jul | 296,860 | 2,127 | |
| Aug | 296,860 | 2,127 | |
| Sep | 296,860 | 2,127 | |
| Oct | 296,860 | 2,127 | |
| Nov | 296,860 | 2,127 | |
| Dec | 296,860 | 2,127 | |
| Jan | 296,860 | 2,127 | |
| Feb | 296,860 | 2,127 | |
| Mar | 296,860 | 2,127 | |
| Year End Balance | 322,390 | 25,530 | |
| Year 6 | |||
| Month | Deposit | Balance | Interest |
| Apr | 50,000 | 372,390 | 2,669 |
| May | 372,390 | 2,669 | |
| Jun | 372,390 | 2,669 | |
| Jul | 372,390 | 2,669 | |
| Aug | 372,390 | 2,669 | |
| Sep | 372,390 | 2,669 | |
| Oct | 372,390 | 2,669 | |
| Nov | 372,390 | 2,669 | |
| Dec | 372,390 | 2,669 | |
| Jan | 372,390 | 2,669 | |
| Feb | 372,390 | 2,669 | |
| Mar | 372,390 | 2,669 | |
| Year End Balance | 404,415 | 32,026 | |
| Year 7 | |||
| Month | Deposit | Balance | Interest |
| Apr | 50,000 | 454,415 | 3,257 |
| May | 454,415 | 3,257 | |
| Jun | 454,415 | 3,257 | |
| Jul | 454,415 | 3,257 | |
| Aug | 454,415 | 3,257 | |
| Sep | 454,415 | 3,257 | |
| Oct | 454,415 | 3,257 | |
| Nov | 454,415 | 3,257 | |
| Dec | 454,415 | 3,257 | |
| Jan | 454,415 | 3,257 | |
| Feb | 454,415 | 3,257 | |
| Mar | 454,415 | 3,257 | |
| Year End Balance | 493,495 | 39,080 | |
| Year 8 | |||
| Month | Deposit | Balance | Interest |
| Apr | 50,000 | 543,495 | 3,895 |
| May | 543,495 | 3,895 | |
| Jun | 543,495 | 3,895 | |
| Jul | 543,495 | 3,895 | |
| Aug | 543,495 | 3,895 | |
| Sep | 543,495 | 3,895 | |
| Oct | 543,495 | 3,895 | |
| Nov | 543,495 | 3,895 | |
| Dec | 543,495 | 3,895 | |
| Jan | 543,495 | 3,895 | |
| Feb | 543,495 | 3,895 | |
| Mar | 543,495 | 3,895 | |
| Year End Balance | 590,235 | 46,741 | |
| Year 9 | |||
| Month | Deposit | Balance | Interest |
| Apr | 50,000 | 640,235 | 4,588 |
| May | 640,235 | 4,588 | |
| Jun | 640,235 | 4,588 | |
| Jul | 640,235 | 4,588 | |
| Aug | 640,235 | 4,588 | |
| Sep | 640,235 | 4,588 | |
| Oct | 640,235 | 4,588 | |
| Nov | 640,235 | 4,588 | |
| Dec | 640,235 | 4,588 | |
| Jan | 640,235 | 4,588 | |
| Feb | 640,235 | 4,588 | |
| Mar | 640,235 | 4,588 | |
| Year End Balance | 695,296 | 55,060 | |
| Year 10 | |||
| Month | Deposit | Balance | Interest |
| Apr | 50,000 | 745,296 | 5,341 |
| May | 745,296 | 5,341 | |
| Jun | 745,296 | 5,341 | |
| Jul | 745,296 | 5,341 | |
| Aug | 745,296 | 5,341 | |
| Sep | 745,296 | 5,341 | |
| Oct | 745,296 | 5,341 | |
| Nov | 745,296 | 5,341 | |
| Dec | 745,296 | 5,341 | |
| Jan | 745,296 | 5,341 | |
| Feb | 745,296 | 5,341 | |
| Mar | 745,296 | 5,341 | |
| Year End Balance | 809,391 | 64,095 | |
| Year 11 | |||
| Month | Deposit | Balance | Interest |
| Apr | 50,000 | 859,391 | 6,159 |
| May | 859,391 | 6,159 | |
| Jun | 859,391 | 6,159 | |
| Jul | 859,391 | 6,159 | |
| Aug | 859,391 | 6,159 | |
| Sep | 859,391 | 6,159 | |
| Oct | 859,391 | 6,159 | |
| Nov | 859,391 | 6,159 | |
| Dec | 859,391 | 6,159 | |
| Jan | 859,391 | 6,159 | |
| Feb | 859,391 | 6,159 | |
| Mar | 859,391 | 6,159 | |
| Year End Balance | 933,299 | 73,908 | |
| Year 12 | |||
| Month | Deposit | Balance | Interest |
| Apr | 50,000 | 983,299 | 7,047 |
| May | 983,299 | 7,047 | |
| Jun | 983,299 | 7,047 | |
| Jul | 983,299 | 7,047 | |
| Aug | 983,299 | 7,047 | |
| Sep | 983,299 | 7,047 | |
| Oct | 983,299 | 7,047 | |
| Nov | 983,299 | 7,047 | |
| Dec | 983,299 | 7,047 | |
| Jan | 983,299 | 7,047 | |
| Feb | 983,299 | 7,047 | |
| Mar | 983,299 | 7,047 | |
| Year End Balance | 1,067,862 | 84,564 | |
| Year 13 | |||
| Month | Deposit | Balance | Interest |
| Apr | 50,000 | 1,117,862 | 8,011 |
| May | 1,117,862 | 8,011 | |
| Jun | 1,117,862 | 8,011 | |
| Jul | 1,117,862 | 8,011 | |
| Aug | 1,117,862 | 8,011 | |
| Sep | 1,117,862 | 8,011 | |
| Oct | 1,117,862 | 8,011 | |
| Nov | 1,117,862 | 8,011 | |
| Dec | 1,117,862 | 8,011 | |
| Jan | 1,117,862 | 8,011 | |
| Feb | 1,117,862 | 8,011 | |
| Mar | 1,117,862 | 8,011 | |
| Year End Balance | 1,213,999 | 96,136 | |
| Year 14 | |||
| Month | Deposit | Balance | Interest |
| Apr | 50,000 | 1,263,999 | 9,059 |
| May | 1,263,999 | 9,059 | |
| Jun | 1,263,999 | 9,059 | |
| Jul | 1,263,999 | 9,059 | |
| Aug | 1,263,999 | 9,059 | |
| Sep | 1,263,999 | 9,059 | |
| Oct | 1,263,999 | 9,059 | |
| Nov | 1,263,999 | 9,059 | |
| Dec | 1,263,999 | 9,059 | |
| Jan | 1,263,999 | 9,059 | |
| Feb | 1,263,999 | 9,059 | |
| Mar | 1,263,999 | 9,059 | |
| Year End Balance | 1,372,703 | 108,704 | |
| Year 15 | |||
| Month | Deposit | Balance | Interest |
| Apr | 0 | 1,372,703 | 9,838 |
| May | 0 | 1,372,703 | 9,838 |
| Jun | 0 | 1,372,703 | 9,838 |
| Jul | 0 | 1,372,703 | 9,838 |
| Aug | 0 | 1,372,703 | 9,838 |
| Sep | 0 | 1,372,703 | 9,838 |
| Oct | 0 | 1,372,703 | 9,838 |
| Nov | 0 | 1,372,703 | 9,838 |
| Dec | 0 | 1,372,703 | 9,838 |
| Jan | 0 | 1,372,703 | 9,838 |
| Feb | 0 | 1,372,703 | 9,838 |
| Mar | 0 | 1,372,703 | 9,838 |
| Year End Balance | 1,490,755 | 118,052 | |
| Year 16 | |||
| Month | Deposit | Balance | Interest |
| Apr | 0 | 1,490,755 | 10,684 |
| May | 0 | 1,490,755 | 10,684 |
| Jun | 0 | 1,490,755 | 10,684 |
| Jul | 0 | 1,490,755 | 10,684 |
| Aug | 0 | 1,490,755 | 10,684 |
| Sep | 0 | 1,490,755 | 10,684 |
| Oct | 0 | 1,490,755 | 10,684 |
| Nov | 0 | 1,490,755 | 10,684 |
| Dec | 0 | 1,490,755 | 10,684 |
| Jan | 0 | 1,490,755 | 10,684 |
| Feb | 0 | 1,490,755 | 10,684 |
| Mar | 0 | 1,490,755 | 10,684 |
| Year End Balance | 1,618,960 | 128,205 | |
| Year 17 | |||
| Month | Deposit | Balance | Interest |
| Apr | 0 | 1,618,960 | 11,603 |
| May | 0 | 1,618,960 | 11,603 |
| Jun | 0 | 1,618,960 | 11,603 |
| Jul | 0 | 1,618,960 | 11,603 |
| Aug | 0 | 1,618,960 | 11,603 |
| Sep | 0 | 1,618,960 | 11,603 |
| Oct | 0 | 1,618,960 | 11,603 |
| Nov | 0 | 1,618,960 | 11,603 |
| Dec | 0 | 1,618,960 | 11,603 |
| Jan | 0 | 1,618,960 | 11,603 |
| Feb | 0 | 1,618,960 | 11,603 |
| Mar | 0 | 1,618,960 | 11,603 |
| Year End Balance | 1,758,190 | 139,231 | |
| Year 18 | |||
| Month | Deposit | Balance | Interest |
| Apr | 0 | 1,758,190 | 12,600 |
| May | 0 | 1,758,190 | 12,600 |
| Jun | 0 | 1,758,190 | 12,600 |
| Jul | 0 | 1,758,190 | 12,600 |
| Aug | 0 | 1,758,190 | 12,600 |
| Sep | 0 | 1,758,190 | 12,600 |
| Oct | 0 | 1,758,190 | 12,600 |
| Nov | 0 | 1,758,190 | 12,600 |
| Dec | 0 | 1,758,190 | 12,600 |
| Jan | 0 | 1,758,190 | 12,600 |
| Feb | 0 | 1,758,190 | 12,600 |
| Mar | 0 | 1,758,190 | 12,600 |
| Year End Balance | 1,909,395 | 151,204 | |
| Year 19 | |||
| Month | Deposit | Balance | Interest |
| Apr | 0 | 1,909,395 | 13,684 |
| May | 0 | 1,909,395 | 13,684 |
| Jun | 0 | 1,909,395 | 13,684 |
| Jul | 0 | 1,909,395 | 13,684 |
| Aug | 0 | 1,909,395 | 13,684 |
| Sep | 0 | 1,909,395 | 13,684 |
| Oct | 0 | 1,909,395 | 13,684 |
| Nov | 0 | 1,909,395 | 13,684 |
| Dec | 0 | 1,909,395 | 13,684 |
| Jan | 0 | 1,909,395 | 13,684 |
| Feb | 0 | 1,909,395 | 13,684 |
| Mar | 0 | 1,909,395 | 13,684 |
| Year End Balance | 2,073,603 | 164,208 | |
| Year 20 | |||
| Month | Deposit | Balance | Interest |
| Apr | 0 | 2,073,603 | 14,861 |
| May | 0 | 2,073,603 | 14,861 |
| Jun | 0 | 2,073,603 | 14,861 |
| Jul | 0 | 2,073,603 | 14,861 |
| Aug | 0 | 2,073,603 | 14,861 |
| Sep | 0 | 2,073,603 | 14,861 |
| Oct | 0 | 2,073,603 | 14,861 |
| Nov | 0 | 2,073,603 | 14,861 |
| Dec | 0 | 2,073,603 | 14,861 |
| Jan | 0 | 2,073,603 | 14,861 |
| Feb | 0 | 2,073,603 | 14,861 |
| Mar | 0 | 2,073,603 | 14,861 |
| Year End Balance | 2,251,933 | 178,330 | |
| Year 21 | |||
| Month | Deposit | Balance | Interest |
| Apr | 0 | 2,251,933 | 16,139 |
| May | 0 | 2,251,933 | 16,139 |
| Jun | 0 | 2,251,933 | 16,139 |
| Jul | 0 | 2,251,933 | 16,139 |
| Aug | 0 | 2,251,933 | 16,139 |
| Sep | 0 | 2,251,933 | 16,139 |
| Oct | 0 | 2,251,933 | 16,139 |
| Nov | 0 | 2,251,933 | 16,139 |
| Dec | 0 | 2,251,933 | 16,139 |
| Jan | 0 | 2,251,933 | 16,139 |
| Feb | 0 | 2,251,933 | 16,139 |
| Mar | 0 | 2,251,933 | 16,139 |
| Year End Balance | 2,445,599 | 193,666 | |
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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