Investing for girl child? Sukanya Yojana helps you fetch the highest return among small saving schemes of 8.4 pct!

Sukanya Yojana: The free-fall of the stock market has once again forced investors to understand the value of diversification of funds and the importance of assured return-oriented investment. As the stock market has fallen to the tune of 30 per cent, demand for government-backed small savings scheme are soaring. According to the tax and investment experts, if someone has a girl child below 10 years of age, opening a Sukanaya Samriddhi account can be a good idea as it attracts the highest return (8.4 per cent) among all small saving schemes. Sukanya Yojana scheme is followed by the Public Provident Fund (PPF) that fetches 7.9 per cent annual returns along with EEE benefits under Section 80C if the investor has opted for the old income tax regime.

Highlighting the benefits of Sukanya Yojana Manikaran Singhal, a SEBI registered tax and investment expert said, "The Sukanya Samriddhi Yojana Account is a Government of India backed saving scheme, specially designed for your girl child. The scheme encourages you to build a fund for the higher education and marriage expenses of your daughter. You can open this account any time after the birth of your girl child till she turns 10. The Sukanya Samriddhi Yojana Account currently offers a high interest of 8.4 per cent and a tax deduction under Section 80C. Returns are tax-free and this account enjoys EEE benefit." Singhal said that one can claim the EEE benefits if the investor chooses the old income tax regime. One who opts for the new income tax regime announced by the finance minister Nirmala Sitharaman in the Union Budget 2020, won't be able to claim the EEE benefits under the Sukanya Yojana. However, even after the option for the new income tax regime, the Sukanya Samridhi Yojana account holder will be eligible to avail of the tax benefits on the Sukanya Yojana rate of interest earned and its maturity amount.

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Speaking on the Sukanya Samriddhi Yojana CS Sudheer, CEO & Founder at IndiaMoney.com said, "One can open a Sukanya Samriddhi Yojana Account with a minimum deposit of just Rs 250 at any post office or an authorized branch of a commercial bank. This account remains operative for 21 years after opening the account or till your daughter’s marriage after she turns 18. You can make a partial withdrawal of 50 per cent of the balance after your daughter turns 18 for her higher education." Sudheer went on to add that an investor can transfer the Sukanya Samriddhi Yojana Account if one's daughter shifts to another city. The investor can make the transfer electronically, at any CBS enabled post office or bank. Sukanya Samriddhi Account offers the highest interest rate among all small savings schemes. On maturity of the account, the account balance and the accrued interest is paid directly to your daughter. This is a great way to gift her financial independence when she will turn 21 years of age.