International Women's Day 2024: International Women's Day 2024 falls on March 8. The purpose of celebrating Women's Day is to highlight women's achievements in different spheres of life. It is a day to show how women have empowered themselves over the years and are competing with their male counterparts in all walks of life. One of the prominent ways to empower women is to make them financially independent. Financial independence is important in every stage of life, but it's good if one begins financial empowerment for a woman when she is a girl child. The sooner a parent starts investing for her girl child, the better are her chances of achieving financial freedom. Among many woman-centric investment schemes that are aimed at empowering them, Sukanya Samriddhi Yojana (SSY) is one of the most prominent. It is a government-run post office scheme that allows you to invest as little as Rs 250 to as much as Rs 1.50 lakh in a financial year.

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What is important for parents is that an investment of just Rs 5,000 a month can help them get Rs 27.92 lakh on maturity. 

In this write-up, we will tell you how it is possible. Before that, let's tell you about the basics of the scheme-

What is Sukanya Samriddhi Yojana (SSY)?

The post office scheme is aimed at helping a girl child in her education and marriage.

The maturity period for investment is 15 years, and the policy matures if the girl gets married at 18 or when she gets 21 years older, whichever comes earlier. 

Sukanya Samriddhi Yojana (SSY): Who can open an account?

A guardian can open a SSY account in the name of a girl child below 10 years of age. The account can be opened for a maximum of two girls in a family. 

Sukanya Samriddhi Yojana (SSY): Minimum and maximum investment

The minimum investment for the scheme is Rs 250, and the maximum is Rs 1.50 lakh in a financial year.

Sukanya Samriddhi Yojana (SSY): Interest Rate The interest rate for the SSY scheme is 8.2 per cent per annum, calculated and compounded on a yearly basis. 

Sukanya Samriddhi Yojana (SSY): Tax benefits

Deposits in the SSY scheme up to Rs 1.50 lakh in a financial year are eligible for tax deduction under Section 80C of the Income Tax Act.

Sukanya Samriddhi Yojana (SSY): Withdrawals

One can withdraw an amount from the SSY account after a girl child attains the age of 18 or passes the 10th standard.

Withdrawals may be made in one lump sum or in installments, not exceeding one per year, for a maximum of five years, subject to the ceiling specified and the actual requirement of fee/other charges.

Sukanya Samriddhi Yojana (SSY): How to get Rs 28 lakh after 5K monthly investment  

If you invest Rs 5,000 a month in the SSY scheme, your yearly investment will be Rs 60,000. Since the scheme provides compound interest of 8.2 per annually, your investment in 15 years will be Rs 9 lakh, the interest will be Rs 18.92 lakh, and the maturity amount will be Rs 27.92 lakh.

If you invest Rs 1 lakh a year, or Rs 8,333.33 in a month, your investment in 15 years will be Rs 15 lakh, the interest you will earn in that duration will be Rs 31.53 lakh, and the maturity amount will be Rs 46.53 lakh.

If you exhaust the full limit of your investment, which means Rs 1.50 lakh in a financial year (or Rs 12333.33 a month), your investment in 15 years will be Rs 22.50 lakh, the interest earned will be Rs 47.30 lakh, and the maturity amount will be Rs 69.80 lakh.

In this way, your small savings every month can help you generate a sizable fund for your daughter that will empower her a great deal by the time she turns 21.