Modi govt's Sukanya Samriddhi Yojana: Make your daughter crorepati, invest just Rs 16 lakh!
Sukanya Samriddhi Yojana Benefits: Have you become father of a girl child recently? Here's a good news for you.
Sukanya Samriddhi Yojana: Have you become father of a girl child recently? Here's a good news for you. Thanks to the Central government's Sukanya Samriddhi Yojana (SSY), you can make your daughter a crorepati by the time she completes 25 years by investing less than one-fourth of the amount for 14 years.
You need to deposit a monthly or yearly lump sum in the Sukanya Samriddhi Account in the name of the girl child for only 14 years. The account, however, matures after 21 years. As long as the girl is not married, the deposits continue to earn interest, even beyond 21 years.
The current rate of interest offered by the government on Sukanya Samriddhi Yojana is 8.5%, which is compounded annually. The interest rate is also revised by the government every year. One can make a maximum investment of Rs 1.5 lakh/year in the Sukanya Samriddhi account. READ MORE
The SSY account can be opened for a girl child aged 1-10 years. Suppose you start an SSY account in the name of your girl child when she turns one. Here are interesting scenarios for you if you invest Rs 12,500/month or Rs 10,000/month for 14 years.
At the current rate of interest, by investing Rs 12,500/month in SSY account, your daughter can get up to Rs 7,799,280 after 21 years. If she continues to remain unmarried for another five years, she will become eligible for getting a whopping Rs 10,808,700 after completing 25 years of age. Your total investment in 14 years would be just Rs 21 lakh.
Now, suppose you plan to invest Rs 10,000/month in the SSY account of your daughter. At the current rate of interest, she will become eligible for getting some Rs 35 lakh after 21 years. If she doesn't marry for another six years, your daughter will get approx Rs 10,179,417 by the time she completes 27 years. Your total investment in the 14 years will be just Rs 1,680,000.
The minimum investment one can make in SSY account per year is Rs 250.
One of the biggest benefits of SSY account is income tax exemption. The proceeds and maturity amount are fully exempted from tax under section 80C of the Income Tax Act.
SSY account can be opened with State Bank of India, State Bank of Mysore, State Bank of Hyderabad, State Bank of Travancore, State Bank of Bikaner & Jaipur, State Bank of Patiala, Vijaya Bank, United Bank of India, Union Bank of India, UCO Bank, Syndicate Bank, Punjab National Bank, Punjab & Sind Bank, Oriental Bank of Commerce, Indian Overseas Bank, Indian Bank, IDBI Bank, ICICI Bank, Dena Bank, Corporation Bank, Central Bank of India, Canara Bank, Bank of Maharashtra, Bank of India, Bank of Baroda, Axis Bank, Andhra Bank and Allahabad Bank.
Note: Online compound interest calculator has been used for this article. The interest rate may vary over the years. Hence, the final amount your daughter may get will be different from what has been shown above.