Sukanya Samriddhi Yojana: The Sukanya Samriddhi Yojana (SSY), introduced by the central government for daughters, is a fantastic savings program. Currently, this scheme provides an interest rate of 8.2%, which is higher than most bank fixed deposits or small savings plans. Additionally, investments up to Rs 1.5 lakh in a financial year qualify for tax exemption under Section 80C of the Income Tax Act.
Parents can begin investing in their daughter’s name with a minimum of just Rs 250. Thanks to its distinctive features, this scheme has gained significant popularity. Today, we will discuss how investing in this scheme can help you easily accumulate a fund of Rs 50 lakh for your daughter’s marriage or higher education.
How to accumulate Rs 50 lakh?
Financial experts recommend that to create a corpus of Rs 5 million through this scheme, investors should start as early as possible.
No need to invest for 6 years
The most appealing aspect of SSY is that after 15 years of investment, the account continues to grow for an additional six years without any further contributions, benefiting from compound interest. This is an excellent way to achieve the goal of Rs 50 lakh through silent compounding. It’s crucial to understand that when the girl turns 18, only 50% of the total amount deposited can be withdrawn. The remaining funds will continue to earn interest until maturity at age 21. The withdrawal process will follow the same guidelines. Before enrolling in this scheme, it is advisable to thoroughly review its terms and conditions for complete understanding and clarity.
Earning Rs 50 lakh from interest alone:
If a person starts investing Rs 1.5 lakh at the time of their daughter’s birth, they will receive Rs 72 lakh by the time they reach 21 years of age or reach maturity. Here’s a calculation to understand.
Annual investment: Rs 1,50,000
Deposit Period: 15 years
Maturity period: 21 years
Interest Rate: 8.2%
Total Deposit Amount: Rs 22,50,000
Interest Earning: Rs 49,32,119
Total amount on maturity: Rs 71,82,119
