Sukanya Samriddhi Yojana: Tax planning is a key activity salaried persons do to save money. There are various instruments available in the market to save taxes, the Sukanya Samriddhi Yojana (SSY) is a scheme that can secure the financial future of your girl child, along with saving taxes. Here are its features and how you can invest.
Currently, the Sukanya Samriddhi Yojana offers an annual interest rate of 8.2 per cent for January-March 2024. The interest rate on the scheme is reviewed on a quarterly basis. The SSY scheme gives better returns than most other small savings schemes and is completely risk-free as it is backed by the government.
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Who Can Open A Sukanya Samriddhi Yojana Account?
Sukanya Samriddhi Yojana account can be opened by the guardian in the name of girl child below the age of 10 years on the day of opening the account. Once the girl turns 18, she will become the account holder. This account can be opened for a maximum of two girls in a family. Provided in case of twins/ triplets girls birth more than two accounts can be opened.
One big plus of the SSY scheme is that an SSY account can be opened at any bank or post office and can be transferred easily to other bank branches or post offices. The investment period in this scheme is 15 years and the maturity period is 21 years.
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Rules of Deposit For Sukanya Samriddhi Yojana Accounts
An SSY account can be opened with minimum initial deposit Rs 250. The depositor can thereafter deposit a minimum of Rs 250 and a maximum of Rs 1.5 lakh in each financial year, in multiples of Rs 50. The deposit can be made as a lumpsum amount or in a monthly basis. However, if the minimum amount is not maintained, there will be a fine of Rs 50, and the account will be considered as defaulted. The defaulted account can be revived before completion of 15 years from the date of opening of account by paying minimum Rs 250 + Rs 50 default for each defaulted year.
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Sukanya Samriddhi Yojana: Interest and Tax Benefits
During the January-March 2024 quarter, the Sukanya Smariddhi Yojana subscriber will earn an interest rate of 8.2 per cent. The interest earned is credited to the account at the end of every financial year and is eligible for exemption under Section 80C of the Income Tax Act, 1961. The deposit amount is also exempt under the same section.
Open Account With Rs 250, Get Rs 2.5 Lakh at Maturity
If you open an account with Rs 250, plus an amount of Rs 250 for the first month and continue to deposit Rs 500 per month, then your total yearly deposit will be Rs 6,000. Assuming that you opened the account at your daughter’s age of 1 year; by the time she turns 22, the investment will be Rs 90,000 while you will receive interest worth Rs 1,87,103 at an interest rate of 8.2 per cent. Therefore, you will receive a maturity value of Rs 2,77,103 after 21 years.
