For those considering the Sukanya Samriddhi Yojana (SSY) to secure their daughters’ future, timing is crucial.
An early deposit in the SSY account not only yields higher returns but also promises more savings for the girl child.
With the financial year commencing on April 1, investing in SSY by April 5 ensures optimal benefits, aligning with the regulations governing small savings schemes.
Why Timing Matters:
The calculation of interest in schemes like SSY and PPF is based on the minimum balance between the 5th and the end of each month.
Hence, depositing a lump sum by April 5 maximizes interest returns for the entire financial year.
Missing this deadline results in forfeiting the monthly interest on the annual deposit, translating to a significant loss in potential earnings.
Profit and Loss Analysis:
Currently offering an annual interest rate of 8.2% for the April-June 2024 quarter, SSY promises substantial returns over 21 years.
A hypothetical scenario of depositing Rs 1.5 lakh annually for 15 years illustrates the impact of timely investments.
Investing before April 5 yields an interest of Rs 49.32 lakh, while delaying deposits incurs a loss of Rs 47,014, resulting in an interest of Rs 48.85 lakh over the same period.
Importance of the 5th Date:
Depositing funds after the 5th of each month excludes them from interest calculations for that month.
Conversely, contributions made on or before the 5th garner interest for the entire month.
Paying attention to such nuances ensures maximizing benefits for the future, emphasizing the significance of timely investments in SSY.
