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Sukanya Samriddhi Yojana (SSY), run by the Central Government for the bright future and financial security of daughters, is the most popular and safe option among small savings schemes. If you want to build a large corpus for your daughter’s higher education or marriage without any risk, this plan offers excellent returns. At present the government is offering an attractive annual compound interest rate of 8.2 percent on this scheme. It is a matter of relief for middle class families that even with a small savings of just ₹ 1500 every month, a fund worth lakhs can be created.
How much return will you get on monthly investment of ₹1500 after 21 years?
According to the rules of Sukanya Samriddhi Yojana, money has to be deposited for 15 years from the date of account opening, while the account matures on completion of 21 years. No money has to be deposited in the last 6 years, but even during that period, compound interest continues to be earned on the deposited amount.
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Monthly Deposit Amount: ₹1,500
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Total investment per annum: ₹18,000
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Total investment in 15 years: ₹2,70,000
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Current Interest Rate: 8.2% (compounded annually)
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Total interest earned in 21 years: Approximately ₹5,98,474
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Total fund at 21 years maturity: About ₹8,68,474
Main features and rules of Sukanya Samriddhi Yojana
This account can be opened in any authorized bank or post office in the name of a daughter below 10 years of age by a parent or legal guardian. This account can be opened only for a maximum of two daughters from a family (there is an exemption in case of twin daughters). In this scheme, a minimum of ₹ 250 and a maximum of ₹ 1.5 lakh can be deposited in a financial year.
Tax exemption and pre-mature withdrawal facility
Sukanya Samriddhi Yojana has triple ‘EEE’ (Exempt-Exempt-Exempt) category status under Section 80C of the Income Tax Act. This means that the amount deposited in it, interest earned and the entire amount received on maturity is completely tax-free. Apart from this, permission is given to withdraw up to 50% of the total amount deposited in the account for higher education expenses after the daughter completes 18 years of age or passes 10th class.
Documents required to open an account
To open an account, daughter’s birth certificate, parent or guardian’s identity card (Aadhar card, PAN card or Voter ID), current address certificate and passport size photograph are required. You can start this easily by going to the nearest post office or any authorized commercial bank like State Bank of India, PNB.