Sukanya Samriddhi Yojana: Want Rs 50 lakh for your daughter by her 21st birthday? Know how much you need to invest to achieve this goal
SSY: Once an account holder turns 18, she can make a partial withdrawal for education or marriage purposes. Meanwhile, the interest amount received on the account is completely tax-free.
Launched in 2015, Sukanya Samriddhi Yojana (SSY) - a government-backed scheme, provides financial security to a girl child. Under this scheme, a girl's parents or legal guardians can deposit a maximum of Rs 1.50 lakh in a year. This scheme is a part of the Beti Bachao, Beti Padhao campaign. Parents or legal guardians don't need to invest money in one go, they can opt for monthly, quarterly, half-yearly, or yearly payment options also.
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SSY features
A look at the features of SSY and how can accumulate more than Rs 50 lakh for their daughter through this scheme.
Minimum deposit to open SSY account
You can open an account with just Rs 250 and the subsequent deposits can be made in multiples of Rs 50.
SSY: Account tenure
SSY account matures after 21 years from the date of opening.
Who manages the SSY account?
A girl's parents or legal guardians can manage the account until the girl turns 18.
Withdrawal
Once an account holder turns 18, she can make a partial withdrawal for education or marriage purposes.
Is premature closure possible?
The SSY account can only be closed prematurely in the event of the depositor's death or any other extreme compassionate grounds.
Tax exemption
The interest amount received on the account is completely tax-free under Section -10 of the Income-tax Act.
SSY: Documents required to open an account
SSY account opening form
Birth certificate of the girl child
PAN/AADHAAR of the parent/guardian
How much do you need to invest monthly for your daughter to get over Rs 50 lakh?
If you invest Rs 9,100 monthly (1,09,200 yearly) in an SSY account for your daughter, you can get Rs 50,46,968 on maturity, as per calculations.
Interest rate
SSY provides 8.2 per cent interest rate.