SSY: For every parent, the biggest worry about their daughter’s future is the cost of education and the pressure of marriage. With inflation on the rise, these costs are climbing, but government initiatives like the Sukanya Samriddhi Yojana (SSY) have eased the burden for countless families. This scheme offers a reliable way to save for daughters, allowing small contributions to grow into a significant amount.
So, how does it work?
Introduced as part of the “Beti Bachao, Beti Padhao” initiative, you can open an SSY account at any post office or authorized bank before your daughter turns 10. You can deposit between ₹250 and ₹1.5 lakh each year for 15 years. Right now, the interest rate is 8.2% per year, compounded annually, and the account matures after 21 years.
If you were to deposit Rs 1.5 lakh annually, your total investment would be Rs 22.5 lakh (Rs 1.5 lakh x 15 years). With an 8.2% interest rate, the amount at maturity after 21 years would be around Rs 72 lakh, with over Rs 49 lakh coming from interest alone. This is based on the scheme’s compounding formula, which shows impressive growth over time.
Flexibility for education and marriage
Once your daughter turns 18, you can withdraw up to 50% of the previous year’s balance for her higher education or marriage. You’ll need documents like an admission letter or fee slip. The full maturity amount is tax-free, and you can claim a deduction of up to ₹1.5 lakh under Section 80C. There’s no market risk involved, as it’s fully backed by the government.
Why pick SSY over other options?
It offers better interest rates than PPF or fixed deposits, with minimal risk compared to mutual funds. Plus, the lock-in period helps prevent unnecessary spending. Head to your nearest bank today and secure your daughter’s future. This not only grants financial independence but also gives parents peace of mind.