The Central Government’s Sukanya Samriddhi Yojana (SSY) has become a strong financial foundation for daughters across the country. This excellent scheme offers a complete guarantee on interest and maturity amount, allowing you to easily build a large corpus for your daughter’s education, career, and marriage. Let’s learn how you can invest in the Sukanya Samriddhi Yojana, and how large a sum you can receive upon maturity if you deposit ₹5,000 every month.
Easy Process to Invest in the Sukanya Samriddhi Yojana
This government scheme is specially designed for daughters, offering high interest rates and tax benefits. Under this scheme, an account can only be opened in the name of daughters under the age of 10. The minimum annual deposit is ₹250 and the maximum is ₹1.5 lakh. The biggest relief is that you only have to deposit money for 15 years, while the account remains active for a full 21 years.
Interest Rate and Tax Benefits
Currently, the interest rate is 8.2% per annum, which is fixed by the government every quarter. This scheme also offers tax benefits, and the interest earned upon maturity is completely tax-free, also known as EEE (Exempt-Exempt-Exempt) category benefits.
How much money will you get after 21 years on a monthly investment of ₹5,000
Suppose you deposit ₹5,000 every month in the Sukanya Samriddhi Yojana (SSY). This translates into annual savings of ₹60,000. If we assume the current interest rate of 8.2%, your total deposit amount will be ₹9 lakh if you deposit ₹60,000 every year for 15 years. With compounding interest, the maturity amount after 21 years could be around ₹24 to ₹25 lakh. This means that a fund of more than two and a half times the deposited capital is created.
It’s important to note that you only need to invest for 15 years. From the 16th year to the 21st year, you don’t need to make any new deposits. During this period, the deposit continues to earn interest, allowing your funds to grow rapidly.
When can you withdraw funds
The Sukanya Samriddhi Yojana (SSY) is designed with special flexibility to allow parents to partially withdraw funds if needed. The full amount under this scheme is available after 21 years of account opening. However, if the daughter turns 18 and needs funds for her education, up to 50% of the deposit can be withdrawn earlier. The remaining amount is available upon maturity.
4 Major Benefits of the Sukanya Samriddhi Yojana
The Sukanya Samriddhi Yojana (SSY) is not just a savings tool, but a strong guarantee for the future of daughters.
Sukanya Samriddhi is a fully government-guaranteed scheme, eliminating the risk of your money sinking.
It offers higher interest rates than fixed deposits and other small savings schemes.
It offers significant benefits such as tax exemption on investment, tax exemption on interest, and tax exemption on maturity (EEE).
It is an excellent and powerful way to create a secure fund for your daughter’s education and marriage.