Crorepati Calculator: This Sukanya Samriddhi Yojana scheme will make your daughter rich; top money-making tip from experts

Crorepati Calculator: At a time when stock market returns have turned extremely volatile, people are moving towards government-backed small saving schemes. 

ZeeBiz WebTeam | May 09, 2020, 10:29 AM IST

Crorepati Calculator: At a time when stock market returns have turned extremely volatile, people are moving towards government-backed small saving schemes. Though the government has slashed small savings schemes interest rates for the April to June 2020 quarter, there are some schemes that are lucrative even after that. Sukanya Samriddhi Yojana or SSY is one such scheme where you can get a great return till your daughter turns 21. Just remember, you have to start really early. Photo: Pixabay/Reuters

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Sukanya Yojana chart

Sukanya Yojana chart

The Sukanya Yojana chart suggests that both the parents of a girl can invest in this scheme for 15 years (in the changed rules, earlier it was 14 years) if you start investing in Sukanya Samriddhi Yojana account immediately after the birth of your daughter. That means, the father can invest Rs 1.5 lakh annually and the mother too can invest Rs 1.5 lakh annually for a grand sum of Rs 3 lakh. Photo: Reuters

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Sukanya Yojana Interest rate

Sukanya Yojana Interest rate

According to tax and investment experts, after Provident Fund or EPF, Sukanya Yojana interest rate of 7.6 per cent is highest. In Sukanya Samriddhi Yojana, the interest rate remains same throughout the investment year as Sukanya Yojana account fetches interest rate available at the time of account opening for the entire investment period. So, if someone opens Sukanya Samriddhi Yojana account in April to June 2020 quarter, he or she will continue to get 7.6 per cent interest rate throughout the investment period. PHoto: HDFC Bank Website

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Sukanya Yojana account opening

Sukanya Yojana account opening

Speaking on Sukanya Scheme Kartik Jhaveri, Director — Wealth Management at Transcend Consultants said, "Sukanya Yojana account can be opened in any of the banks operating in India. Currently, the Sukanya Scheme is fetching 7.6 per cent interest per annum, which is still much higher than other small savings schemes like PPF, NPS, tax-saving bank fixed deposits, etc." Jhaveri went on to add that Sukanya Yojana demands disciplined investment as one can't withdraw money till the daughter turns 18 years of age (subject to some exemptions). Even after 18 years of the girl child, only 50 per cent of the account balance can be withdrawn for the higher studies of the girl child. Photo: Reuters

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Income Tax benefit to Sukanya Yojana account holders

Income Tax benefit to Sukanya Yojana account holders

Elaborating upon the returns one can get while making investment in Sukanya Samriddhi Yojana Jhaveri said, "Since, Sukanaya Yojana is fetching highest return after EPF or PF, it's advisable for those parents who have a girl child and have low risk appetite to invest their 1.5 lakh annual investment limit under Section 80C of the Income Tax." Photo: Reuters

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Sukanya Scheme Calculator

Sukanya Scheme Calculator

Following the above investment strategy, if someone invests Rs 12,500 per month or Rs 1.5 lakh per annum in Sukanya Samriddhi Yojana Account, the SSY Calculator suggests that one will be able to grow Rs 63,97,855 when one's daughter will turn 21 years of age.

So, if mother and father invest Rs 12,500 per month each, then their investment becomes doubled to Rs 25,000 (Rs 12,500 x2). Hence, their annual investment also gets doubled to Rs 3 lakh (Rs 1.5 lakh x2) and so does their maturity amount. 

And what will that sum eventually turn into at maturity? A whopping Rs 1,27,95,710 (Rs 63,97,855 x2) i.e. Rs 1.27 crore!

Do note that, as per the Sukanya Yojana rules, there is no limit on annual investment in Sukanya Samriddhi Yojana account but one can get income tax exemption of only up to Rs 1.5 lakh per annum. Photo: PTI