Today, the cost of children’s education and marriage has gone up a lot, making it tough for families to manage these expenses. However, if you start saving early, it can help ease this problem. The government’s Sukanya Samriddhi Yojana is a great option for parents of daughters to save for the future.
The interest rate for Sukanya Samriddhi Yojana is decided by the government every three months. This scheme is backed by the government, so it is safe and has no risk. Right now, the interest rate is 8.2% per year, which is quite high. The scheme is only for daughters and helps parents save money for their daughter’s education and marriage. Let’s look at the main features of this scheme.
Who Can Open an Account?
Parents can open a Sukanya Samriddhi account for their daughter before she turns 10 years old. The scheme allows for the opening of only two accounts per family, one for each daughter. In cases of twins or triplets, more than two accounts can be opened.
Key Features of Sukanya Samriddhi Yojana
Contribution Period
The account can be opened as soon as the daughter is born, and contributions can be made for a maximum of 15 years. After 15 years of investment, there is a 6-year lock-in period where no additional deposits are needed, but interest continues to accrue.
Withdrawal Rules
When the daughter turns 18, parents can withdraw 50% of the maturity amount for her higher education or marriage. The remaining balance can be withdrawn when the daughter turns 21, marking the scheme’s maturity.
Tax Benefits
Investments of up to Rs 1.5 lakh per year are eligible for income tax deduction under Section 80C.
The scheme enjoys EEE (Exempt-Exempt-Exempt) status, meaning the investment amount, interest earned, and maturity amount are all tax-free.
Minimum and Maximum Deposits
The minimum annual deposit is Rs 250, while the maximum is Rs 1.5 lakh. Deposits can be made in instalments or as a lump sum payment.
Potential Returns: Earn Up to Rs 70 Lakh
Suppose you open an SSY account for your daughter when she is 1 year old in 2024. If you invest Rs 1.5 lakh every year, by the time the scheme matures in 2045, you could receive a total of Rs 69,27,578. Here, your total investment would be Rs 22.5 lakh, and the interest earned would amount to Rs 46,77,578.
In conclusion, The Sukanya Samriddhi Yojana is a secure and tax-free way to save for your daughter’s future education and marriage, offering both high returns and peace of mind for parents.
Disclaimer: For any financial investment anywhere on your responsibility, Times Bull will not be responsible for it.