Among many investment schemes that Prime Minister Narendra Modi government has unveiled, there is this one that promises achhe din for girl children in India - Sukanya Samriddhi Yojana. India is a very traditional country, and every parent starts to save big for their daughter the moment she is born. There are many reasons for beginning an investment for a girl child as early as possible. Some parents prepare for her wedding in future, and some simply want to give her a better education. A girl is deemed to be mature from the age of 18 but legally grown at the age of 21.

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One of the key highlights of the Sukanya Samriddhi Yojana is that, a parent can begin an investment at minimum Rs 1000 and maximum Rs 1.5 lakh every year.

The scheme is highly secured with a guaranteed return and a maturity period which is generally kept at 21 years of age. This means all a parent has to do is begin saving from early age of the girl child, and can remove the amount just in time of her maturity in life which is 21 years of age.

Firstly, it allows you to know the exact maturity value when your investment matures. One can change the amount of investment as per their needs at any time and yet manage to get the maturity value in seconds.

As the scheme promises to provide a better future for the girl child, it has to be completely tax-free. The principal amount invested in this scheme is deductible under Section 80C of the Income Tax Act. Up to Rs 1.5 lakh is deductible under section 80C.

Not only this, no taxes are levied on interest earned throughout the investment period as well as the final maturity amount received once the account is closed.

Interest rates on this scheme were earlier announced on yearly basis, however, from the FY 2016-17, the rate of interest for savings schemes are decided on a quarterly basis.

Currently, from October 2018, the interest rate for the Sukanya Samriddhi Yojana account is set at 8.5%.

Because, the interest rate is compounded yearly, this scheme has turned out to be best interest rate provided in comparison to other savings schemes. It’s like a bonus, as the scheme not only provides security to the girl child but also offers a high rate of interest and tax exemption too.

Any parent or legal guardian can open this account in the name of their girl child anywhere between her birth and 10 years of age. One can open a maximum two accounts for two girl children in one family.

It needs to be noted that, the scheme is available only to benefit girl child having Indian residency, and not for those with a non-resident status.

There are many ways to open a Sukanya Samriddhi Yojana account. One can either visit an authorized post office or banks like State Bank of India, Bank of Baroda, Punjab National Bank, Bank of India, Canara Bank, Andhra Bank, UCO Bank, and Allahabad Bank.

The documents required for opening this account include - birth certificate of the girl child, address proof and certificate which states the relationship with the child.

Now, let us come to the amount of investment you should make in this scheme. You also need to have an idea on how much you gain going forward. The scheme is convenient, hassle-free and very efficient right from lower class families to upper class ones.

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If you make an investment of Rs 1,000 on yearly basis for 14 years, then you have invested about Rs 14,000 and your gains come in at Rs 46,821 at 21 years of age.

However, if you increase your investment amount to Rs 5,000 and Rs 10,000 annually for 14 years. Then you have invested about Rs 70,000 and Rs 1.40 lakh for the tenure, and are entitled to gain up to Rs 2.34 lakh and Rs 4.68 lakh respectively.

In case, you opt to make Rs 1 lakh investment on annual basis for 14 years, then you have invested about Rs 14 lakh for the tenure and have achieved returns of Rs 46.82 lakh.

Notably, the higher the amount of your deposits, the higher will be your gains in the scheme. Hence, if you choose to deposit up to Rs 1.5 lakh annually for 14 years, then you have invested a total Rs 21 lakh for the period, and have gain more than Rs 70.23 lakh.

Not many are in the position to afford hefty amounts on annual basis. Not to worry, the scheme is also available on monthly basis.

If you invest Rs 1,000 per month for 14 years, then your have invested about Rs 1.68 lakh for the period and will be in position to earn up to Rs 5.42 lakh.

(Image Source: BankBazaar.com)

If you invest Rs 5,000 per month for 14 years, then you have deposited about Rs 8.40 lakh and is in better position to earn about Rs 27.10 lakh.

At Rs 10,000 per month investment for 14 years, a customer earns return of somewhat Rs 54.21 lakh on their initial amount of Rs 16.80 lakh.

The highest monthly investment would be Rs 12,500, where you make a total Rs 21 lakh investment for 14 years, and are eligible to earn over Rs 67.76 lakh.

Hence, Sukanya Samriddhi Yojana account can be termed among best investment plan for a girl child. If you are planning to make an investment in this plan, than choose your investment amount wisely in order to avail best benefit.