Sukanya Samriddhi Yojana: The education or marriage of daughters is a big concern for every parent. This is the reason why people start arranging money as soon as their daughter is born. For such people, the Central Government’s popular small savings scheme – Sukanya Samriddhi Yojana (SSY) is a great option. This is a government-backed savings scheme which was launched by Prime Minister Narendra Modi in the year 2015.
what is the interest rate
The government is paying 8.2% interest per annum on the account opened under Sukanya Samriddhi Yojana. Let us tell you that the interest rate on Sukanya Samriddhi is revised every quarter. This is one of the highest interest rates available in small savings schemes.
Investment for 5 year old daughter
If your daughter is 5 years old and you are investing Rs 1.2 lakh annually i.e. Rs 10,000 per month at an interest rate of 8.2% per annum, then the estimated maturity amount in the scheme after 21 years will be around Rs 55.61 lakh. The amount invested in this is Rs 17.93 lakh and the interest earned after 21 years is Rs 37.68 lakh. If you can invest Rs 1,50,000, then the maturity amount will be Rs 69.8 lakh. In this, the interest earned on an investment of Rs 22.5 lakh is Rs 47.3 lakh.
Detail of the plan
Investments made in Sukanya Samriddhi Yojana are tax-exempt. Investments made in the scheme are eligible for deduction under Section 80C, with a maximum limit of Rs 1.5 lakh. The interest that accrues on this account, which is compounded annually, is also tax-free under Section 10 of the Income Tax Act. The income received on maturity/withdrawal is also exempt from income tax.
One of the key features of Sukanya Samriddhi Yojana is its lock-in period, which is up to 21 years. For example, if an account is opened for a girl at the age of 5, it will mature when she turns 26.
