Recently I have received a question from an individual, “As the deposit period for Sukanya Samriddhi Account is upto 14 years only, Will government pay interest during 14 -21 year?” The answer of this question in simple words will be “Yes”.
Under Sukanya Samriddhi Account new saving scheme one can deposit money till 14 years from the account opening date. But after 14 years it will simply accumulate interest on the accumulated amount till maturity.
Interest will be compounded yearly basis. And this will be gradually able to make a huge corpus if the initial investments are good. Let’s explain how much one will get from these 14-21 years without depositing further money to Sukanya Samriddhi Account.
Sukanya Samriddhi Account Interest Calculation If you invest Rs 100/month
If someone invests Rs 100 on monthly basis, means Rs 1200 every year. Then after 14 years the accumulated amount will be Rs 32,999.
Now from 15th year onward this amount will grow further after getting compounding interest. After 21 years it will be Rs 60,713. That means almost double in 7 years. And the interesting factor is without depositing further amount. This is the power of compounding.
Don’t Miss Sukanya Samriddhi Scheme is 100% tax free
The above calculation is done using the Sukanya Samriddhi Account calculator, where interest rate is considered as 9.1% throughout 21 years. In real time it will change every year and the maturity amount will be different than the above.
In-fact new interest rate for year 2015-16 has been recently declared as 9.2%. Hope this explanation is enough to understand this query. Share your queries regarding Sukanya Samriddhi Account new saving scheme here.