With the birth of a daughter, parents begin to worry about her education and marriage. To alleviate this concern and ensure a financially secure future for their daughters, the Central Government's Sukanya Samriddhi Yojana (SSY) has emerged as the most trusted and popular savings scheme. With benefits like safe investment, excellent interest rates, and tax exemptions, this scheme remains the preferred choice of millions of parents.

What is the objective of Sukanya Samriddhi Yojana?

The main objective of this scheme is to create a substantial fund for your daughters' higher education and future needs. Since this scheme is completely government-run, your money is completely safe. This is an excellent way for middle-class families to convert their small savings into substantial investments.

When and how to open an account?

You can open a Sukanya Samriddhi Account any time from your daughter's birth until she turns 10. This account can be opened by the parents or legal guardian at any nearby post office or authorized bank. Only one account is allowed in the name of a daughter.

Investment Limits and Time Frame

You can start investing in this scheme with a minimum of ₹250 per year. The maximum investment limit is ₹1.5 lakh per financial year. The key is that you only need to deposit money for 15 years, while the account matures at age 21. Upon maturity, you receive substantial interest along with the deposit amount.

How to make Rs 70 lakh with Rs 12,500 per month?

If you deposit Rs 12,500 every month for your daughter, your annual investment will reach Rs 1.5 lakh. If you continue investing for 15 years, your total deposit will be Rs 22.5 lakh. At the current interest rate of 8.2 percent, this fund could grow to approximately Rs 69 to 70 lakh after 21 years.

Guaranteed interest rate and security

The interest rate on the Sukanya Samriddhi Yojana is determined by the government from time to time. Currently, it is 8.2%, which is quite attractive compared to other small savings schemes. Because of the government guarantee, there's no risk of your principal being lost.

Additional benefit of tax exemption

The biggest attraction of this scheme is the income tax exemption it offers. Investments made under it are eligible for tax deductions under Section 80C of the Income Tax Act. Furthermore, the interest earned and the maturity proceeds are also completely tax-free. Opening an account on time and investing regularly can significantly reduce future financial worries.