In today’s fast-paced world, investing in the right place is most important for the golden future of children. Sukanya Samriddhi Yojana (SSY) of the Government of India can prove to be an unprecedented option for the financial future of daughters. It is a government-backed scheme which is completely risk-free.
Currently, the scheme is offering a compound interest of 8.2%, which is extremely attractive. The scheme especially helps in creating a large fund for the higher education and marriage of daughters. Let us understand in detail some key points related to Sukanya Samriddhi Yojana and its benefits.
Unique Features of Sukanya Samriddhi Yojana
Sukanya Samriddhi Yojana was launched under the ‘Beti Bachao, Beti Padhao’ campaign, and has many unique features:
Eligibility to open an account
Parents can open an SSY account for their daughter anytime before she turns 10 years old. This ensures that you can start early.
How many accounts
Usually, SSY accounts can be opened for a maximum of 2 daughters in a family. However, in cases of birth of ‘twins’ or ‘triplets’, more than 2 accounts can also be opened. This provides flexibility in ‘special circumstances’.
Contribution period
Contributions can be made in this scheme for a maximum of 15 (15) years from the date of opening the account.
Investment and lock-in
If you open the account immediately after the birth of your daughter, you can invest for up to 15 (15) years. After this, there is a lock-in period of 6 years, in which you do not have to make any investment but you continue to get interest on your deposit amount. This is a wonderful opportunity for passive income.
Partial withdrawal
Up to 50% of the maturity amount can be withdrawn when the daughter turns 18 years old. The remaining amount can be fully withdrawn when the daughter turns 21 years old. This is an invaluable assistance for the big expenses of education or marriage.
Tax benefits
The SSY scheme comes with ‘EEE’ (Exempt-Exempt-Exempt) status. This means that on the annual investment of up to ₹1.50 lakh made in this scheme, on the interest received on it, and on the entire amount received on maturity, all three get the benefit of income tax exemption. This is a great opportunity for saving tax.
Minimum and maximum investment
You can deposit a minimum of ₹250 and a maximum of ₹1,50,000 in a financial year. You can make this investment in installments or a lump sum.
It is an excellent combination of flexibility and profitability
How to create a fund of ₹70 lakh? See detailed example. Suppose, you open an account in Sukanya Samriddhi Yojana for your 1 year old daughter in 2025. If you invest a maximum of ₹1,50,000 every financial year, you can receive a total of ₹69,27,578 at the time of maturity in 2046. This amount will include the total principal amount invested by you of ₹22,50,000 and a huge interest benefit of ₹46,77,578. This is a dream-fulfilling fund.
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