Business Desk – Sukanya Samriddhi Yojana: It is important to make financial planning in time for big expenses like daughter's education, higher education, career and marriage. In such a situation, the Central Government's Sukanya Samriddhi Yojana (SSY) is a major option among the small savings schemes made for the future of daughters. This scheme was started under the 'Beti Bachao, Beti Padhao' campaign. In this, interest fixed by the government is available and income tax benefits are also available on eligible investments.
Who can open Sukanya Samriddhi Account?
Sukanya Samriddhi Account can be opened from the birth of the daughter till she completes 10 years of age. The account can be opened by parents or legal guardians. Normally accounts can be opened for a maximum of two daughters in a family. In special cases like birth of twins or triplets, rules allowing opening of more than two accounts apply.
How much money can you deposit in a year?
In this scheme, a minimum of Rs 250 and a maximum of Rs 1.5 lakh can be deposited in a financial year. It is not necessary to deposit the entire amount at once. Parents can also deposit money in different installments during the year as per their convenience.
The amount has to be deposited for 15 years from the date of account opening. However, the maturity of the scheme is 21 years after account opening. That is, even after the investment is closed, interest continues to be received on the amount deposited in the account for the next six years.
What interest rate is available?
The interest rate of Sukanya Samriddhi Yojana is decided by the Central Government from time to time. The interest rate mentioned in your given content is 8.20% per annum, but it is important to check it with the government notification of the relevant quarter before publishing it as the current rate. Interest is added to the account on a compounded basis annually.
Tax benefits are also available
Sukanya Samriddhi Yojana is considered as EEE i.e. Exempt-Exempt-Exempt category investment. Eligible investments can avail tax benefits up to Rs 1.5 lakh annually under Section 80C of the Income Tax Act. The interest received on the account and the maturity amount received as per the rules also come under the ambit of tax benefits.
How much fund will be created by depositing Rs 1.5 lakh every year?
If a parent deposits a maximum of Rs 1.5 lakh every year and invests continuously for 15 years, the total deposit amount will be Rs 22.50 lakh. After this, interest will continue to be added till the account matures.
However, it would definitely not be right to declare the final amount to be received after 21 years as Rs 70 lakh or any other amount, because the government can change the interest rate of SSY from time to time. Therefore the actual maturity amount will depend on the interest rates applicable during the period and the time of deposit in the account.
Why is the plan special for the daughter's future?
The biggest advantage of Sukanya Samriddhi Yojana is that it gives a disciplined way to save in the name of the daughter for a long period. In this, the investment limit is fixed, contribution is made for 15 years and the account matures in 21 years. Therefore, money can be prepared in the long run for the daughter's higher education or other major financial goals in the future.
The account can be opened through post office or authorized bank branch. Before investing, one must check the current interest rate, withdrawal rules, tax regime and official terms of the scheme.
