India (Commonwealth Union)_ Under the government’s “Beti Bachao, Beti Padhao ” initiative, Sukanya Samriddhi Yojana scheme was announced by Prime Minister Narendra Modi in January 2015. This investment scheme which focuses on the future of girl children was established to urge parents to save money for their daughter’s future, especially funds for education and wedding.
Parents are allowed to open a minimum of two accounts for each child. However, there is an exemption for twins and triplets that permits for additional accounts. The account may be transferred to any place in India. Individuals can open their Sukanya Samriddhi Account at any India Post Office or specified branches of commercial banks prior to the girl’s tenth birthday.
On the eighth anniversary of the scheme, here are some advantages of having a Sukanya Samriddhi Yojana Account. Sukanya Samriddhi Account offers a 7.6% annual interest rate for the current fiscal year. This investing plan provides the highest rate of return compared to other savings schemes. In a fiscal year, a minimum investment of INR 1000 and a maximum investment of INR 1.5 lakh are permitted.
According to Section 80C of the Income Tax Act of 1961, Sukanya Samriddhi Yojana investments are tax-deductible. The account also allows a 50% withdrawal for higher study when the girl turns 18. The deposit can be paid in a single payment or monthly installments. However, if the minimum balance is not retained in the account, a penalty of INR 50 will be imposed and the account would be regarded as default. Before 15 years have gone since the account was started, a minimum payment of Rs 250 + Rs 50 each year of inactivity is required to reactivate a defaulted account.
If you open an account with INR 250, deposit additional INR 750 for the starting month, and continue to deposit INR 1,000 every month, your annual deposits will amount to INR 12,000. If you have created an account when your daughter was born, then you will have invested INR 1,80,000 and accumulated INR 3,47,445 by the time she turned 21. Therefore, after 21 years, you will get INR 5,27,445 in maturity value. This savings can be used for your child’s education or marriage purpose.
