Sukanya Samriddhi Yojana (SSY) is one of the most attractive small savings schemes in India, offering a great way for parents to build a substantial fund for their daughter’s future. With the current interest rate at 8.2% per annum, the scheme promises nearly three times the return on your total investment by the time the account matures. Here’s a breakdown of how you can accumulate Rs. 50 lakh by investing in SSY and the steps you need to take.
What is Sukanya Samriddhi Yojana?
SSY is a savings scheme offered by the Indian government to support the financial future of girls under the “Beti Bachao, Beti Padhao” campaign. Parents can open an account in their daughter’s name before she turns 10, and the money deposited will grow with interest over the years.
Currently, the scheme offers an interest rate of 8.2% per annum. What makes this scheme even more attractive is that the returns are tax-free, and you can start with as little as Rs. 250 per year, going up to Rs. 1.5 lakh annually.
How to Achieve Rs. 50 Lakh with Sukanya Samriddhi Yojana
Let’s say you want to build a fund of Rs. 50 lakh for your daughter. You can do this by making regular investments in the SSY scheme over the years. Here’s a step-by-step guide to reach your target:
- Year of Opening SSY Account: Start an SSY account in 2024.
- Interest Rate: The interest rate is 8.2% per annum, and it is compounded annually. This means the interest adds up quickly and grows your savings significantly.
- Annual Investment: To reach the Rs. 50 lakh goal, you will need to invest Rs. 1.10 lakh each year for 15 years.
- Total Investment in 15 Years: Over 15 years, you would have invested Rs. 16.50 lakh.
- Maturity Period: The scheme matures after 21 years, but you only need to make deposits for 15 years. After that, the money continues to earn interest for another 6 years.
- Final Amount on Maturity: By 2045, when the account matures, you will have Rs. 50,80,224 in the account, including the principal amount and the interest.
- Interest Earned: The total interest earned would be Rs. 34,30,224, which is more than double your total investment.
Tax-Free Benefits of Sukanya Samriddhi Yojana
One of the standout features of SSY is its tax benefits. The scheme is classified under the EEE (Exempt-Exempt-Exempt) category, which means:
- Investment Exemption: You can claim a deduction of up to Rs. 1.5 lakh per year under Section 80C of the Income Tax Act.
- Interest Exemption: The interest earned on the deposit is completely tax-free.
- Maturity Exemption: The final maturity amount, including the interest, is also tax-free.
This triple tax benefit makes SSY one of the most lucrative savings schemes available for long-term investments.
Early Withdrawal Options for Daughter’s Education or Marriage
The Sukanya Samriddhi Yojana allows partial withdrawals before the 21-year maturity period. If your daughter turns 18, you can withdraw up to 50% of the accumulated amount for her higher education or marriage. This gives you flexibility in case you need the funds earlier.
Moreover, after 5 years of opening the account, certain conditions allow for premature withdrawal, such as in the case of the account holder’s death or severe illness.
Secure Your Daughter’s Future with Consistent Investments
Sukanya Samriddhi Yojana is an excellent way for parents to ensure their daughter’s financial future. With regular yearly investments of Rs. 1.10 lakh, you can build a corpus of over Rs. 50 lakh by the time she turns 21. This amount can be used for her education, marriage, or any other important milestone in her life.
