The Central Government offers a range of Small Saving Schemes that are highly beneficial for individuals looking to build a substantial fund for the future through small investments.
If you aspire to invest in your daughter’s marriage or higher education, Sukanya Samriddhi Yojana (SSY) can prove to be an excellent choice.
Launched under the Beti Padhao Beti Bachao Yojana, this scheme aims to ensure that economically disadvantaged daughters do not face financial hardships in the future.
What makes this scheme unique is the flexibility to start investing with just Rs. 250. It offers better interest rates compared to other schemes and comes with the added advantage of tax exemption.
Investment in Sukanya Samriddhi Yojana can be initiated before your daughter turns 10 years old.
Lock-in Period:
Sukanya Samriddhi Yojana has a lock-in period of 21 years, meaning the scheme will mature after 21 years.
During this period, premature withdrawals are not allowed to avoid potential losses. However, when your daughter reaches 18 years of age, 50% of the amount can be withdrawn for education purposes.
In the unfortunate event of the account holder’s demise, the money can be withdrawn before maturity.
Otherwise, the complete withdrawal can only be made when she turns 21. Notably, the scheme does not require deposits for the entire 21 years, as contributions are made only for 15 years from the account opening date.
Interest Rate:
The interest rate for Sukanya Samriddhi Yojana is currently set at 8% per annum. Although the scheme matures in 21 years, parents need to invest for only 15 years, while the remaining years allow for compounding interest.
A maximum annual deposit of Rs. 1,50,000 is permitted, and investment options can also be chosen on a monthly basis.
Tax Benefits:
Sukanya Samriddhi Yojana offers tax exemption at three different levels, making it a tax-free scheme (EEE). Firstly, under Section 80C of the Income Tax Act, investments of up to Rs. 1.50 lakhs are eligible for exemption.
Secondly, returns received from the scheme are also tax-free. Lastly, the maturity amount is exempt from taxes.
Investing in Sukanya Samriddhi Yojana not only provides financial security for your daughter’s future but also offers attractive returns while enjoying the benefits of tax exemption.
Don’t miss this risk-free opportunity to empower your daughter’s dreams and secure her financial well-being.
