Sukanya Samriddhi Yojana: Sukanya Samriddhi Yojana: Deposit money in your SSY account before April 5 to earn higher curiosity; here’s why | Business


Sukanya Samriddhi Yojana deposit deadline: Parents investing in Sukanya Samriddhi Yojana (SSY) for his or her daughters ought to deposit the money before April 5 to maximise returns for the present monetary 12 months, 2024-25. Early investments qualify for higher tax-exempt curiosity, making certain larger financial savings for the way forward for the woman youngster.
Investing in Sukanya Samriddhi Yojana for your daughter’s future is a brilliant transfer, however timing is essential.If you are planning to make investments, ensure you do it before April 5 to optimize your returns for the present monetary 12 months, 2024-25. Here’s why.
According to ET, the curiosity is calculated primarily based on the bottom stability in the account between the fifth and the top of every month in the Sukanya Samriddhi Scheme. This means buyers who want to make lump sum funding in their SSY account ought to achieve this before April 5 to maximize curiosity earnings. Missing this deadline outcomes in shedding further month-to-month curiosity on the yearly deposit.
Deposits made in the SSY account after April 5 or after the fifth of any month aren’t thought-about for curiosity calculation in that exact month.
If you miss the April 5 deadline, you will lose out on month-to-month curiosity for that 12 months’s deposit. Similarly, month-to-month funds must be made on or before the fifth of every month to keep away from lack of curiosity.
ALSO READ | Latest Sukanya Samriddhi Yojana rate of interest: What you want to know for April-June 2024 quarter

Impact of lacking the Sukanya Samriddhi Yojana deposit date

For instance, suppose an SSY account holder deposits Rs 1.5 lakh on April 20. For curiosity calculation in April, the bottom stability between April 5 and April 30 is taken into account. Since the deposit on April 20 comes after this era, it will not earn any curiosity for April.
In distinction, if the deposit is made on or before April 5, the bottom stability after April 5 is taken into account. This means the contribution made on April 5 will earn curiosity for the month of April.

What’s the price of lacking the April 5 SSY deposit deadline?

Now that we perceive that deposits made before April 5 or the fifth of each month in SSY earn extra curiosity in contrast to these made after that date, let’s know the way far more curiosity an SSY account can earn with early deposits.
It’s essential to observe that curiosity in an SSY account is calculated month-to-month however credited on the finish of the monetary 12 months, comparable to a PPF account. The authorities opinions SSY rates of interest each three months.
Sukanya Samriddhi Yojana usually gives a higher rate of interest than Public Provident Fund (PPF). Currently, SSY gives 8.2% every year, whereas PPF gives 7.1%. Missing the April 5 deadline or the fifth of each month can lead to higher losses, comparable to lacking the PPF funding deadline.
Consider this: For occasion, the SSY’s present rate of interest of 8.2% every year for the April-June 2024 quarter. Assuming this fee stays fixed all through the 21-year SSY account length, if an account holder deposits Rs 1.5 lakh yearly before April 5 for 15 years, they might earn Rs 49.32 lakh in curiosity. However, if the deposit is made after April 5, the curiosity earned can be Rs 48.85 lakh. Thus, by investing a lump sum after April 5, the account holder would lose Rs 47,014 over the 21-year interval.
ALSO READ | Small Savings Scheme Interest Rates April-June 2024 introduced: How a lot will you earn by investing in Sukanya Samriddhi, PPF, NSC, Kisan Vikas Patra and so forth?
SSY account matures both after 21 years from the date of opening or when the account holder will get married after turning 18.
An SSY account holder who makes month-to-month funds of Rs 12,500 before the fifth of each month will earn a complete curiosity of Rs 46.79 lakh over 21 years. However, if deposits are made after the fifth of each month, the curiosity earned shall be Rs 46.75 lakh. In this state of affairs, the curiosity loss is Rs 3,791, which is decrease than the loss incurred with a lump sum cost. Individuals making month-to-month contributions to SSY accounts might not lose as a lot curiosity in contrast to these making lump sum contributions.
Remember, the curiosity earned from a Sukanya Samriddhi account is tax-free. So, in the event you miss depositing before April 5 or the fifth of each month, you will miss out on incomes extra tax-free curiosity for your daughter. Parents can make investments between Rs 250 and Rs 1.5 lakh per 12 months in an SSY account for every daughter, with a most of two accounts per guardian or authorized guardian. (*5*) may be made as soon as the daughter turns 18 or passes the tenth customary, topic to particular situations.

Nilesh Desai
Nilesh Desai
The Hindu Patrika is founded in 2016 by Mr. Nilesh Desai. This website is providing news and information mainly related to Hinduism. We appreciate if you send News, information or suggestion.


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