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Saving Schemes: Sukanya Samriddhi Yojana Scheme will Make Your Daughter & You a Crorepati; Know How?

At a time when the entire world is fighting against covid-19 pandemic, its time to go for government-backed small saving schemes. Even after the government has slashed small savings schemes interest rates for the April - June 2020 quarter, there are few schemes that are beneficial even after that. One such scheme is Sukanya Samriddhi Yojana (SSY).

Tooba Maher
sukanya scheme
Sukanya Samriddhi Yojana Scheme for Girl Child

At a time when the entire world is fighting against Covid-19 pandemic, its time to go for government-backed small saving schemes. There are many schemes that are beneficial for safety and security of you and your family. One such scheme is Sukanya Samriddhi Yojana (SSY). In this scheme, you can get a great return till your daughter turns 21. But for that you will have to start early.

How does Sukanya Yojana chart works?

As per the Sukanya Yojana chart, both the parents of a girl can invest in this scheme for 15 years (in the changed rules, earlier it was 14 years). Interestingly, if you start investing in Sukanya Samriddhi Yojana account immediately after the birth of your daughter, then the father can invest Rs 1.5 lakh in a year and the mother also can invest Rs 1.5 lakh annually for a grand sum of Rs 3 lakh.

What is the Interest rate of Sukanya Samriddhi Scheme?

In the scheme, the interest rate remains same throughout the investment year as Sukanya Yojana account fetches interest rate available at the time of account opening for the entire investment period. Hence, if someone opens SSY account in April - June 2020 quarter, he or she will continue to get 7.6% interest rate throughout the investment period.

How to open Sukanya Yojana account?

Sukanya Yojana account can be opened in any of the banks operating in India. Currently, the Sukanya Scheme is fetching 7.6% interest per annum, which is still much higher than other small savings schemes like PPF, NPS etc. SSY account can be opened in the name of the girl from her birth to any time before she turns 10 years old. One only requires a minimum investment amount from Rs 1,000 to a maximum of Rs 1.5 lakh per year. However, one can't withdraw money till the daughter turns 18 years of age (subject to some exemptions). Even after 18 years of the girl child, only 50% of the account balance can be withdrawn for the higher studies of the girl child.

Income Tax benefit to SSY account holders

As this scheme is giving highest return after EPF or PF, it's advisable for those parents who have a girl child & have low risk appetite to invest their 1.5 lakh annual investment limit under Section 80C of the Income Tax.

Sukanya Yojana Calculator

If the above investment strategy is followed, then if someone invests Rs 12,500 per month or Rs 1.5 lakh yearly in Sukanya Samriddhi Yojana Account, the SSY Calculator suggests that one will be able to grow Rs 63,97,855 when one's daughter will turn 21 years of age.

Hence, if mother and father invest Rs 12,500 per month each, then their investment becomes doubled i.e. Rs 25,000 (Rs 12,500 x2). Therefore, their annual investment also gets doubled to Rs 3 lakh (Rs 1.5 lakh x2) and also their maturity amount.

Thus, the sum that will eventually turn into at maturity will be Rs 1,27,95,710 (Rs 63,97,855 x2) or Rs 1.27 crore.

It is to be noted that, according to the Sukanya Yojana rules, there is no limit on annual investment in Sukanya Samriddhi Yojana account but one can get income tax exemption of only up to Rs 1.5 lakh per annum.

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