To get maximum returns in Sukanya Samriddhi Yojana, you have to invest today itself. If you invest in your SSY account by April 5, your returns will be optimized for 2024-25. Know what is the reason…
New Delhi: To get maximum returns in the financial year 2024-25, you have to invest in Sukanya Samriddhi Yojana (SSY) before April 5. Early deposit in SSY will give you higher tax exempt interest and this benefits the future of the girl child. Timely repayment is important to maximize savings, but if you have invested in an SSY account before April 5, your returns will be optimized for 2024-25. Know how:
what is the reason
In Sukanya Samriddhi Yojana, interest is calculated on the basis of the lowest balance in the account from the 5th of every month to the end. This means investors who want to invest a lump sum in their SSY account should deposit the money before April 5 to maximize interest income. Missing this deadline results in loss of additional interest on the annual deposit. However, before the change in December 2019, in Sukanya Samriddhi Yojana, interest was available only on the minimum balance available between the end of the tenth day of every month and the last day.
Do it in PPF also
Not only in SSY you have to deposit money in your account before 5th April, but also in PPF, if you do not invest till 5th then you will not get interest for that month, because the interest calculation in it is also like SSY. . The way you invest has a significant impact on the returns you get at maturity. According to the rules, in both the savings schemes SSY and PPF, interest is available only on the minimum balance available between 5th and last date of every month. This means that if you do not invest before or till the 5th of the month, you will not get interest for that month. It is noteworthy that interest is calculated on monthly basis, but the entire interest is credited on the last day of the financial year i.e. 31st March. In both these schemes, interest is compounded on an annual basis.
Experts say that if you have surplus then you should try to invest lump sum on or before April 5 of every financial year. Even if it is more convenient to do it every month, at least do it before or on the 5th of the month. Let us understand both with examples.
Loss in investments made in SSY after April 5
For example, the current interest rate of SSY for the April-June 2024 quarter is 8.2% per annum. Assuming that this rate remains constant for 21 years, then if an account holder deposits Rs 1.5 lakh annually for 15 years before April 5, he will get Rs 49.32 lakh as interest. However, if deposited after April 5, the interest earned will be Rs 48.85 lakh. Thus, if a lump sum investment is made after April 5, the account holder will suffer a loss of Rs 47,014 over a period of 21 years.
PPF
For PPF account, assume the interest rate is 8% for the entire maturity period (15 years). In the calculation, if the maximum limit of investment in a financial year is taken to be Rs 1.5 lakh, then if you deposit Rs 1,50,000 in lump sum every financial year on or before 5th April, then the amount after the maturity period of 15 years will be = 43, Rs 98,642, whereas if you deposit Rs 1,50,000 in lump sum after April 5, then the maturity amount will be = Rs 43,71,490. So in this case you will suffer a loss of Rs 27,152 in returns.
