SSY Account: Deposit a fund of Rs 21 lakh for your 5 year old daughter, know SSY calculation
SSY Account: You can deposit Rs 250 to Rs 1.5 lakh in SSY account in 1 year. To open an SSY account, the daughter’s age should be less than 10 years. You can deposit money in the account for 15 years.
SSY account matures in 21 years and there is no tax on the interest received. 8% interest is given on the account. There is benefit of compounding on the interest received in SSY. When the daughter turns 18, money can be withdrawn from the account for education or marriage.
Know with this easy calculation how much money you will have to deposit in how many installments to create a fund of Rs 21 lakh.
You will have to invest Rs 4,000 every month for 15 years. In this case, you will deposit a total of ₹ 48,000 every year.
At the same time, after 15 years, ₹ 7,20,000 will be deposited in your SSY account in a monthly installment of ₹ 4,000.
By taking advantage of compound interest, you can earn a total interest of ₹ 14,37,797 on a deposit of ₹ 7,20,000.
According to this calculation, when the account matures after 21 years, you can create a huge fund of Rs 21,57,797.