This government scheme offers tax-free savings, providing a potential Rs 64 lakh for your daughter’s future expenses.
Sukanya Samriddhi Yojana: Inflation is soaring, making it challenging to fulfill big dreams like your child’s higher education, marriage, and home ownership. To avoid falling into debt to meet these significant expenses, wise investing is crucial. Why not start saving for your child’s future early on, ensuring you’re financially prepared for their higher education and marriage? The government offers the Sukanya Samriddhi Yojana which is designed to ease the financial burden of your daughter’s education and marriage. Let’s delve into the details of this scheme.
When to open a Sukanya Samriddhi account?
The best time to open a Sukanya Samriddhi Account (SSY Account) for your daughter is as soon as she’s born. You can open an account in this scheme before your daughter turns 10 years old. By opening an account right after her birth, you can contribute to the scheme for 15 years.
The government reviews the interest rate for this scheme every three months. For the July to September 2023 quarter, the interest rate remains unchanged at 8 percent per annum. Upon your daughter turning 18, you can withdraw 50 percent of the maturity amount. The remaining balance can be withdrawn when she reaches 21 years of age.
Building a fund of Rs 64 lakh:
If you deposit Rs 12,500 every month (or around Rs 416 per day) in the Sukanya Samriddhi Yojana, the annual contribution amounts to Rs 1.5 lakh, which is entirely tax-free. Assuming a maturity interest rate of 7.6 percent, you can accumulate a substantial fund for your daughter by maturity. If you withdraw the entire amount when she turns 21, the maturity sum will be Rs 63,79,634, with a total investment of Rs 22,50,000 and interest income of Rs 41,29,634. By consistently depositing Rs 12,500 monthly, you can create a fund of Rs 64 lakh for your daughter’s future.