SSY Returns: If you have a daughter under 10 and wish for a bright future for her, consider the Sukanya Samriddhi Yojana, a top government investment scheme offering a high interest rate. Investing in this scheme for 15 years can build a substantial fund for her education or marriage.
A key feature of this scheme is its annual interest rate of 8.2%
Launched in 2015 as part of the “Save the Daughter, Raise the Daughter” initiative, the Sukanya Samriddhi Yojana enables individuals to open accounts in their daughter’s name at a bank or post office. With an attractive 8.2% return, individuals can open accounts for up to two daughters.
Additional benefits include tax deduction on investments up to Rs 1.5 lakh. Under Section 80C of the income tax regime, deductions are allowed on investments up to Rs 1.5 lakh annually. This long-term investment scheme offers ample time for investments to grow.
By investing just Rs 10,000 yearly, you could earn Rs 3,11,839 in interest over 15 years. For instance, if your daughter is 5 years old and you start investing now, your account will mature in 2047. With a total investment of Rs 150,000 over 15 years at an 8.2% interest rate, you could earn Rs 311,839 in interest upon maturity, totaling Rs 461,839 in 2047, suitable for your daughter’s education.
Financial experts recommend parents with one or two daughters to consider this scheme, investing at least Rs 1,000 monthly, which amounts to Rs 12,000 annually. For a 5-year-old daughter, the investment could grow to Rs 554,206 by 2047.
Partial withdrawal facility is available after 18 years
When the daughter turns 18, up to 50% of the account balance can be withdrawn. This facility is primarily provided for higher education expenses. The withdrawal amount is determined based on the account balance at the end of the previous financial year. Fortunately, it’s not necessary to withdraw the entire amount at once. The money can be withdrawn in installments depending on your needs.