The government runs the Sukanya Samriddhi Yojana (SSY), which falls under the small savings scheme. Prime Minister Narendra Modi initiated this scheme in 2015 to ensure financial security for daughters.
This scheme is a part of the Beti Bachao Beti Padhao campaign, which aims to help parents or guardians meet the expenses of their girl children. The primary goal of this scheme is to complete daughters’ education and reduce the financial burden of marriage.
The Sukanya Samriddhi Yojana also provides strong returns, as well as tax exemption. A girl up to 10 years old can open an account under this scheme. Daughters can invest a minimum of Rs 250 and a maximum of Rs 1.5 lakh in this scheme. Sukanya Samriddhi Yojana is subject to tax exemption under Section 80C of the Income Tax Act 1961.
How much interest is received?
The government sets interest rates for Sukanya Samriddhi Yojana accounts on a quarterly basis. For this quarter, from 1 July 2024 to 30 September 2024, the government has fixed the compound interest rate in SSY at 8.2% per annum.
What is the expected return on a Rs 10,000 investment?
If you have a 5-year-old daughter and invest Rs 1.2 lakh annually, it equates to Rs 10,000 per month. Simultaneously, assuming an annual interest rate of 8.2%, the estimated maturity amount in the Sukanya Samriddhi Yojana after 21 years is approximately Rs 55.61 lakh, with an investment of Rs 17.93 lakh and an interest of Rs 37.68 lakh.
Conversely, an annual investment of Rs 150,000 will yield a maturity amount of Rs 69.8 lakh, while an investment of Rs 22.5 lakh will yield an interest of Rs 47.3 lakh.
Scheme Rules
A key feature of the Sukanya Samriddhi Yojana is its lock-in period, which is 21 years. For instance, if a girl opens an account at age 5, it will mature at age 26. This long-term investment option not only promotes financial discipline but also offers them a substantial amount on maturity.
