Sukanya Samriddhi Yojana (SSY) is a scheme launched by the Government of India for the welfare of girls. This account can be opened only by the guardian of the girl child below the age of 10.
The term is 21 years. You can invest for the first 15 years. The amount invested will be tax deductible. There is no tax on the interest. There is also no tax on the amount received when the account is closed after 21 years. If the girl gets married before 21 years, the account will be closed.
Sukanya Samriddhi Yojana is the highest interest-bearing tax-free savings account guaranteed by the Indian government.
What is the tenure of Sukanya Samriddhi Yojana investment ?
The term is 21 years. Investments can be made for the first 15 years. If the girl gets married before the age of 21, the account will be closed.
There is a facility to withdraw money from the account after 5 years for medical expenses or education expenses. The account can be closed even if the girl dies prematurely.
If you haven’t closed it before, after 21 years, the account will be closed and you will receive the principal and interest back.
What is the minimum annual deposit required for Sukanya Samriddhi Yojana investment?
Currently, the minimum deposit is Rs. 250. There is a rule that at least Rs. 250 must be deposited every year.
How many times should one invest in Sukanya Samriddhi Yojana every year?
You can make any number of investments in a year.
How much can be invested in Sukanya Samriddhi Yojana every year?
The minimum deposit is Rs 250 and the maximum is Rs 1,50,000. Deposits can only be made for the first 15 years after opening the account.
How to start Sukanya Samriddhi Yojana?
This account can be opened at post offices and authorized bank branches. The girl’s birth certificate and address proof will be required.
Who can buy Sukanya Samriddhi Yojana?
Only parents of girls below the age of 10 can open an account. Only one account can be opened for a girl. Similarly, a parent can open an account for only two girls.
What is the return on investment in Sukanya Samriddhi Yojana ?
The rate announced on July 1, 2019, is 8.4 percent. The government will revise this rate every 3 months. The interest rate on this account is 0.5 percent higher than that of the PPF account.
After calculating tax:
Sukanya Samriddhi Yojana accounts are tax-free. The amount invested will be eligible for tax deduction under Section 80C.
What is the fee for Sukanya Samriddhi Yojana investment ?
There are no fees to mention.
Other benefits
Sukanya Samriddhi Yojana is the best investment option that is tax-exempt, guaranteed by the government, and does not require you to pay tax on principal and interest.
Should I invest in Sukanya Samriddhi Yojana?
If you are someone who wants to open a PPF account to save tax, then you should consider the Sukanya Samriddhi Yojana account. You can open this account only if you have a girl child below the age of 10. It is also important to remember that there is a 21-year tenure.
But you will get 0.5 percent more interest than PPF account. If you are only interested in safe investments, Sukanya Samriddhi Yojana is one of the best options.
