Sukanya Samriddhi Yojana: Today, every parent’s biggest concern is their daughter’s future. Considering the expenses of education, career, and marriage, there’s a need for a secure investment. The Central Government’s Sukanya Samriddhi Yojana (SSY) was launched with this need in mind. This scheme is part of the Beti Bachao Beti Padhao campaign and is seen across the country as a safe, reliable, and tax-free investment option.

How to Open a Sukanya Samriddhi Account

Under this scheme, an account can be opened only in the name of daughters under the age of 10. This account can be opened easily at any post office or authorized bank branch. A minimum annual deposit of Rs 250 is mandatory, while a maximum investment of Rs 1.5 lakh can be made. The investment period is 15 years, but the account remains active for 21 years. Currently, the government offers an annual interest rate of 8.2%, which is revised quarterly.

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How much tax benefit is available?

The Sukanya Samriddhi Yojana scheme is tax-exempt under Section 80C of the Income Tax Act. This means that the investment, the interest earned, and the maturity amount are all completely tax-free. This makes it more attractive than other investment options, as there is no tax on your hard-earned money.

Maturity will occur on an investment of Rs 2,000

Suppose your daughter is currently one year old and you start depositing Rs 2,000 every month. This translates to an annual investment of Rs 24,000, and a total investment of Rs 3.60 lakh over 15 years. If the interest rate is assumed to be 8.2% per annum, then after 21 years, this account will have accumulated approximately Rs 11.08 lakh. This means you will receive a return of more than two and a half times your deposit. Interestingly, even after investing for 15 years, interest continues to accrue for the next six years, allowing the amount to grow rapidly.

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When and how to withdraw money

The entire amount can be withdrawn upon completion of 21 years from the date of opening the Sukanya Samriddhi Account. However, if the daughter turns 18 and needs funds for higher education, up to 50% of the account’s total balance can be withdrawn early. This facility provides parents with financial assistance for their daughter’s education or other needs.