Sukanya Samriddhi Yojana is a government-backed small savings scheme for the girl child, aimed at securing their future education and marriage. The scheme provides an excellent opportunity for parents to plan their daughter’s financial future systematically. With the central government increasing the interest rate on Sukanya Samriddhi Yojana (SSY) to 8%, it has become an attractive investment option for parents seeking long-term investment with a fixed interest rate.
The scheme offers an excellent return on investment that debt mutual fund investors can invest in for long periods. The interest received on SSY is available on compound interest, which means that interest earned is added to the principal amount, and interest is calculated on the entire amount. The interest rate available on SSY is fixed every quarter and may change.
If parents invest in Sukanya Samriddhi Yojana immediately after the birth of their daughter, they can expect an average return of around 7.6 to 8 percent. Suppose an investor starts investing in the SSY account immediately after the birth of their daughter. In that case, they will contribute to it for 15 years, and after that, there is no need to invest money in it. When the daughter turns 21, she will get the entire money, and 50% of the maturity amount can be withdrawn when the investment is 14 years old, and the girl child is 18 years old. The rest of the money can be withdrawn on maturity.
Investing in Sukanya Samriddhi Yojana is an excellent way to secure the financial future of your daughter. Suppose interest is given at the rate of 7.6 percent until the maturity of the scheme. In that case, a person invests Rs 12,500, i.e., Rs 1.50 lakh every month, then they will get an exemption under 80C. If the investor withdraws the money after the completion of 21 years of the girl, they will get approximately Rs 63,79,634. So, if an investor starts investing Rs 12,500 per month in Sukanya Samriddhi Yojana account immediately after the birth of their daughter, the girl child will be a millionaire at the age of 21.
Investing in a government scheme is exempted under section 80C of income tax. An investor can claim an exemption on investment up to Rs 1.50 lakh invested in the SSY account in a financial year. 100 percent tax exemption will be available on both the interest of SSY and the money received on maturity.
The Sukanya Samriddhi Yojana scheme offers a unique investment opportunity for parents looking to secure their daughter’s financial future. With an interest rate of 8%, this government-backed scheme offers a fixed return on investment, making it an attractive investment option for long-term planning. Parents can take advantage of the tax exemption offered under section 80C and invest in the scheme up to Rs 1.50 lakh annually. Investing in Sukanya Samriddhi Yojana can help parents provide a secure financial future for their daughters and ensure that they can pursue their dreams without any financial constraints.