Sukanya Samriddhi Yojana: All You Need to Know

The Sukanya Samriddhi Yojana (SSY) has recently seen a hike in interest rates from 7.60% to 8%, making it an even more lucrative investment option for parents looking to secure their daughter’s futures. This savings program, introduced in 2015 as part of the government’s Beti Bachao, Beti Padhao campaign, allows parents to open a savings account for their girl child at authorized commercial banks or India Post branches.

Investors who start contributing to their SSY account as soon as their daughter is born can do so for 15 years, and expect returns of between 7.60 and 8%. Withdrawals of 50% of the maturity amount can be made when the girl turns 18, and the remaining amount can be withdrawn when she reaches 21. Alternatively, investors can choose to withdraw the entire amount when the girl turns 21, ensuring that she is financially independent.

By investing Rs 12,500 per month for 12 installments, investors can fully use their Rs 15,000 income tax benefit limit under Section 80C in one fiscal year, assuming a 7.6% return on their investment at maturity. When the girl turns 21, the SSY account matures with a value of about Rs 63,79,634, allowing her to pursue her dreams without financial constraints.

Furthermore, if the girl has completed 10th grade and is at least 18 years old, the corpus withdrawn can be applied toward her higher education costs. The money can only be used for admission and fee costs, and depositors must provide university entrance credentials and fee receipts as evidence that the money is being used for educational purposes.

Investing in an SSY account is a powerful way for parents to empower their daughters and secure their future. With tax exemptions and attractive interest rates, the SSY provides a valuable tool for parents seeking to support their daughters’ education and financial independence.

–Re-reported from the story originally published in News18.