Sukanya Samriddhi Yojana scheme

Tax planning is a crucial aspect of financial management for salaried individuals, and one such avenue that not only aids in tax saving but also secures the financial future of your girl child is the Sukanya Samriddhi Yojana (SSY). This government-backed scheme offers attractive features and returns, making it an ideal choice for parents looking to invest for their daughters’ future.

Eligibility and Features

The SSY account can be opened by a guardian in the name of a girl child below the age of 10 years. Upon reaching 18 years of age, the girl becomes the account holder. Families with more than one girl child can open a maximum of two accounts, with exceptions made for twins or triplets, where additional accounts can be opened. Furthermore, the flexibility of opening an SSY account at any bank or post office, coupled with easy transferability between branches or post offices, enhances its accessibility.

Investment and Deposits

The Sukanya Samriddhi Yojana scheme requires an initial deposit of just Rs 250, with subsequent deposits ranging from a minimum of Rs 250 to a maximum of Rs 1.5 lakh per financial year, in multiples of Rs 50. Deposits can be made as lump sums or in monthly installments. Failure to maintain the minimum balance incurs a fine of Rs 50, with the account considered defaulted. However, defaulted accounts can be revived within 15 years of opening by paying the required amount.

Interest and Tax Benefits

With an annual interest rate of 8.2% for the January-March 2024 quarter, SSY offers better returns compared to other small savings schemes, with the interest credited annually. Both the interest earned and the deposit amount are eligible for tax exemption under Section 80C of the Income Tax Act, 1961.

Maturity and Returns

Consider this scenario: opening an account with an initial deposit of Rs 250, followed by monthly deposits of Rs 500, totaling Rs 6,000 annually. Assuming the account is opened when the daughter is one year old, by the time she turns 22, the investment would amount to Rs 90,000, with interest earned worth Rs 1,87,103 at an 8.2% interest rate. Consequently, the maturity value after 21 years would be Rs 2,77,103, securing a substantial sum for her future endeavors.

In conclusion, Sukanya Samriddhi Yojana scheme stands out as a reliable and lucrative investment avenue for securing your daughter’s financial future while enjoying tax benefits. Its flexible deposit options, attractive interest rates, and tax exemptions make it an ideal choice for prudent financial planning.

Re-reported from the article originally published in The News 18