Should you Invest in Sukanya Samriddhi Yojana? Read here

Sukanya Samriddhi Yojana

Launched in the year 2015, Sukanya Samriddhi Yojana is a government-backed scheme that targets the parents of girl children. It encourages them to open a savings account that can be used to sponsor their daughter’s education and marriage expenses.

Currently, this scheme offers a lucrative rate of interest at 8.4%. In addition to this, customers can avail tax benefits under Section 80C. 

When can a savings account be opened under the Yojana?

The parents or legal guardians of a girl child can open the savings account before she attains 10 years of age. Only one account can be created per girl child with the maximum number being two per family. Exceptions under Sukanya Samriddhi Yojana are allowed in case of twin girls. 

Beneficiaries willing to invest in this scheme should consider the pointers mentioned below and decide if that’s a wise investment idea for them or not. 

Why invest in Sukanya Samriddhi Yojana?

  • Minimum deposit 

Under this programme, contributors have to deposit Rs.250 initially while opening the account. It is also the minimum amount that needs to be deposited per year. The maximum deposit in a year can’t exceed Rs.1.5 lakh. 

  • Long-term deposit 

It is a long-term deposit scheme where contributors can deposit for 15 years (from the date of account opening). The savings account hence opened is active till 21 years from the date of opening before it is matured and the money is returned to the beneficiary. 

After the contribution of 15 years, interest is earned on the saved amount for the rest period before attaining maturity. This feature makes SSY one of the best schemes to save money

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It is a long-term investment; unlike fixed deposits, wherein one can choose the tenor of deposit and compute maturity amount using FD interest calculator

  • Tax exemption 

The deposits and the maturity amount earned by the beneficiaries under Sukanya Samriddhi Yojana can be exempted from tax under Section 80C. This makes it a preferable choice for investors who wish to safeguard their girl child’s future by saving funds for higher study and marriage.  

  • Rate of interest 

Beneficiaries can avail a higher rate of interest than regular savings account with 8.5% interest rate. 

Nevertheless, individuals having a substantial amount and looking for investment opportunities can consider opting for a term deposit. With a Bajaj Finance Fixed Deposit, customers can expect higher returns while having the flexibility to choose tenor. 

  • Multiple modes of deposit 

Customers can deposit funds in the account using multiple modes of deposit like cash, cheque, demand draft, or via e-transfers

  • Partial withdrawal 

The option for partial withdrawal is available to account holders who attain the age of 18 and require funds for any one of the two purposes – 

  • Higher education in any educational institution. 
  • To meet marriage expenses. 

In both cases, they can withdraw 50% of the amount which is available to date. However, they need to provide valid documents in support of their claim to be able to withdraw the funds partially. 

Other important considerations before investing in SSY

Below mentioned are a few considerations that one should keep in mind to measure the feasibility of this investment opportunity. 

  • Premature closing of an account 
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Premature closing of such accounts is possible only under two conditions – 

  • The unfortunate death of the account holder. 
  • In case the contributor isn’t able to pay even the minimum amount to continue the account. 

Consequently, customers who need flexibility in terms of tenor can opt for an FD and maximise their returns with Bajaj Finance Fixed deposits. 

Subsequently, individuals should keep these things into consideration to decide if this investment opportunity is feasible for them or not. Choosing a feasible investment option can help them get secured and higher returns for a financially secure future.

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