Is Sukanya Samriddhi a Good Investment?

 If you ask around, you might find out that the Sukanya Samriddhi scheme is one of the best post office schemes launched to date, and everyone wants a bite of this cake. What makes this scheme so timeless even after all these years, and still stay high in demand? There are a lot of benefits to the Sukanya Samriddhi post office scheme, and this article can tell you everything you need to know about it. Just before we jump at the perks this scheme comes with, let us first understand its basics and how it really works.

What is the Sukanya Samriddhi Scheme?

The Sukanya Samriddhi Yojana (SSY) is a modest savings plan offered by the Ministry of Finance specifically for girl children. SSY was inaugurated by the Hon'ble Prime Minister on January 22, 2015, as part of the Beti Bachao Beti Padhao initiative. The initiative is intended to cover a girl child's educational and marriage expenditures. This plan, announced by the government of India on December 14, 2014, encourages parents to save aside funds for their daughters' future education and marriage expenditures.

You can apply for this scheme through private and public sector banks or the post office. 

The account can be started by the girl's parents or legal guardian. The girl kid must be under the age of ten years. A girl child may only have one account. A household may only open two SSY accounts. Annual investment ranges from Rs. 250 to Rs. 1,50,000. The Maturity Period is 21 Years.

The Sukanya Samriddhi interest rate as of 2024 is 8.0%. 

The principal amount deposited, interest generated throughout the term, and maturity benefits are tax-free. Section 80C allows a maximum deduction of Rs. 1,50,000 for the principal amount. 

Since its start, the initiative has opened over 2.73 crore accounts, with deposits totaling nearly Rs. 1.19 lakh crore.

Who Can Opt For the Sukanya Samriddhi Scheme?

As mentioned above, you need to have a girl child whose name you can use to open this account. You can either be the parent or the legal guardian of the child to open this account. The girl child should be ten years or younger in order for you to avail of this scheme. 

What are the Major Benefits of the Sukanya Samriddhi Yojana?

There are several benefits in availing the SSY Yojana, and they are:

1. It is Tax Exempt

The first and best benefit of this scheme is the tax exemption. Typically, when we invest or save, a small part of our savings gets deducted in the form of taxes. In the case of the Sukanya Samriddhi Yojana, you would not have to go through that burden. The government has enabled all fund returns to be tax-exempt. This means there will be no taxes on your earnings through this savings scheme. This ensures the scheme is a highly sought-after choice by Indian citizens for this reason. 

2. It is a Long Term Investment

This scheme does not mature until the girl child turns 21 years old. This makes sure that the investment does not stop or is broken before the tenure has been completed. Though partial withdrawals can be made in the scheme, it does not allow a complete withdrawal. This holds the money tight until your child is old enough to put it to use. 

3. Easy and Affordable Deposits

The deposits can be as low as Rs. 250 each year. This makes it an affordable option for any parent to start the scheme. Though Rs. 250 is the minimum amount that can be paid in the scheme each year, you can deposit a maximum of Rs. 1.5 lakhs, which will give you promising returns in the long run. 

4. Promotes Saving

Since the deposits are easy and small, you can start them right away without waiting for funds on your end. It promotes saving as a part of your financial management plan. 

5. Earns High Rate of Interest

The current rate of interest for the scheme is 8.0%. This is a very good interest rate when compared to bank RD and FD accounts. Moreover, the entire interest earned will be yours to keep since nothing will be chipped off as tax. 

6. Earns Interest Even When You Cease to Pay

Suppose, in unforeseen circumstances, you stop your deposits to the SSY account; don't worry; there are perks to that, too. Even when you stop making deposits in the account, as a default, the account will keep generating interest on the amount that you have already paid. Further on, this account will be termed as a default account. 

7. Partial Withdrawals are Allowed

Up to 50% of the scheme's funds can be available when the girl passes her 10th grade. This is to provide finances for her higher studies. This clearly states that you would not have to arrange for money to get her into college; the scheme gives it to you. A partial withdrawal can also be done when the girl child reaches 18 years of age. 

8. Can be Operated by the Girl Child Herself

After your daughter is 18 years of age, as a default function, she can start operating the account herself. 

9. Security for Your Child's Future

It is a secure saving scheme since it does not consider other external factors but just the girl child's age. This secures your daughter's future and provides her with the financial stability and assurance that she will need in the future. 

As mentioned above, the perks of this scheme are enormous. Yet, you will have to remember that this scheme is very time-specific, so you will have to enroll in this scheme before your baby girl can hit ten years of age. If she crosses that age limit, there is no possible way you can enroll in this scheme, and this becomes the most important clause you need to keep in mind while thinking about investing in it. 

We hope this post assured you that the Sukanya Samriddhi was a good investment choice for your daughter