The government has different saving plans that are very helpful for people who want to save for the future by investing small amounts of money.
If you’re thinking about investing for your daughter’s marriage or education, Sukanya Samriddhi Yojana (SSY) might be a good option.
The government has increased the interest rate on this scheme from 8 percent to 8.2 percent for the January to March quarter.
You can start an account for your 10-year-old daughter in a bank or post office under this scheme. You can deposit Rs 250 to Rs 1.5 lakh annually in SSY.
The best part is that you get a tax exemption on the deposited amount under Section 80C of Income Tax.
Great Returns: Sukanya Samriddhi Yojana offers the highest interest among small savings schemes, with an interest rate of 8.2 percent per year.
It guarantees more than a 3 times return on your investment.
For instance, if you invest Rs 1.50 lakh every year, you can accumulate a fund of Rs 70 lakh on maturity, which is more than 3 times your investment.
Tax Benefits: This scheme is tax-free at three levels – annual investment exemption up to Rs 1.50 lakh under Section 80C, no tax on returns, and tax-free maturity amount.
Withdrawal Conditions: The lock-in period for this scheme is 21 years, meaning you can’t withdraw money before maturity.
However, when your daughter turns 18, you can withdraw 50 percent of the amount for her education.
In case of the account holder’s sudden death, money can be withdrawn before maturity.
The full amount can be withdrawn when your daughter turns 21.
The unique feature is that you only need to deposit money for 15 years from the account opening date.
