You do not need a huge sum of money to start saving for your daughter's future. If you can invest just ₹1,200 per month, you can gradually build a substantial fund through the Sukanya Samriddhi Yojana (SSY). This amounts to an annual deposit of ₹14,400. If you invest consistently for 15 years, your total out-of-pocket investment will be ₹2,16,000. After this period, you do not need to make further deposits until the 21-year tenure is complete, yet interest will continue to accrue in the account.

In other words, by starting with a small amount in this scheme, you can create a large fund for your daughter over the long term. Based on an estimate assuming a constant annual interest rate of 8.2%, a monthly saving of ₹1,200 can generate a fund of approximately ₹6.90 lakh. Of this, about ₹4.74 lakh would come from interest earnings. Please note that the government may revise the SSY interest rate from time to time, so the actual amount may vary.

**Detailed breakdown of the ₹1,200 monthly investment**
If you deposit ₹1,200 every month:

Monthly investment: ₹1,200
Annual investment: ₹14,400
Total investment over 15 years: ₹2,16,000
Estimated interest: Approx. ₹4,74,000
Estimated fund after 21 years: Approx. ₹6,90,000

This estimate is based on the monthly investment and a constant interest rate of 8.2%.

**Deposits required for only 15 years**
Under the SSY, you are not required to deposit money every month for the entire 21-year tenure. In this example, you would deposit ₹1,200 per month for 15 years. You would make no new investments for the subsequent 6 years, yet interest would continue to be added to the account. This is the advantage of a long-term approach; while the initial amount may seem small, the fund grows over time as interest accumulates on the accumulated interest (compounding).

**How ​​will the ₹6.90 lakh fund for your daughter be created?** Suppose you open an SSY account around the time your daughter is born and start depositing ₹1,200 per month. Over 15 years, your total investment would amount to ₹2.16 lakh. You would then stop making deposits. If an interest rate of 8.2% remains constant throughout the tenure, the estimated corpus at the end of the 21-year period could be around ₹6.90 lakh. This means that, in addition to your deposited amount, you could earn approximately ₹4.74 lakh in interest.

Who can open an SSY account?
Parents or legal guardians can open a Sukanya Samriddhi Account in the name of a daughter who is under 10 years of age. The scheme allows for annual deposits ranging from a minimum of ₹250 to a maximum of ₹1.50 lakh. Therefore, starting with a monthly contribution of ₹1,200 is feasible even for families who may not be in a position to save large sums every month.

Rules for partial withdrawal
This scheme does not allow for the withdrawal of the entire corpus before maturity. However, partial withdrawals are permitted under specific rules to fund the daughter's higher education once she turns 18. The full amount is payable upon the completion of the scheme's designated tenure. By leveraging small savings, a long investment horizon, and the power of compounding, you can build an estimated fund of around ₹6.90 lakh for your daughter's future with a monthly investment of just ₹1,200.

PC Social Media