Sukanya Samriddhi Yojana Explained

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What is the Sukanya Samriddhi Yojana Scheme?

The Sukanya Samriddhi Yojana Scheme is a small savings scheme that is backed by the Government of India. It is a part of the Beti Bachao, Beti Padhao Yojana Scheme. The parents of any girl schild who is below 10 years old can open this scheme for the child. In addition to designated banks you have the option to open these schemes at post offices. This Sukanya Samriddhi Yojana Scheme has a total tenure of 21 years or till the girl child is married after 10 years of age. In this article, we will have a look at the Sukanya Samriddhi Yojana Scheme in detail and understand how to use the Sukanya Samriddhi Yojana calculator.

Benefits of Sukanya Samriddhi Yojana Scheme

The Sukanya Samriddhi Yojana Scheme has plenty of benefits when it comes to a girl child. Let us have a look at some of the key benefits.

  1. Flexible Investment

With this scheme, you have the option to invest in a flexible manner. You can start with as little as ₹250 and invest up to a maximum of ₹1.5 Lakhs in one year.

  1. High Interest Rate

With the Sukanya Samriddhi Yojana Scheme, you can avail an interest rate of 7.6% per annum as of Q1 in FY 2020-2021.

  1. Guaranteed Returns

With the SSY scheme, you are promised returns on your investment as it is a government-backed scheme.

  1. Tax Benefits

According to Section 80C in the Income TAX Act, you are eligible for tax benefits. You can get a tax benefit up to a maximum of ₹1.5 Lakhs.

  1. Compounding Benefit

This scheme can provide you with an option for a long-term investment. As this scheme is spread across several years, you can benefit from the power of compounding and thereby experience increased returns.

Eligibility for the Sukanya Samriddhi Yojana Scheme

To apply for the Sukanya Samriddhi Yojana Scheme, you have to meet certain eligibility criteria. Let us have a look at the eligibility criteria for the SSY scheme.

  • Only legal guardians and parents can apply for the Sukanya Samriddhi Yojana Scheme on behalf of the girl child.
  • Only 2 SSY accounts can be opened in one family.
  • The girl child must be below 10 years old when the account is opened.
  • In the name of a girl child, only one SSN account can be opened.

Sukanya Samriddhi Yojana Calculator

This government-backed Sukanya Samriddhi Yojana Scheme provides guaranteed returns on investments that are made. The returns can only be measured by appropriate calculations. You can calculate your returns by using the SSY calculator. For example, if you deposit an amount of ₹1 Lakh, then you will earn an interest of 7.6% per year. So, at the end of 1 year, your maturity value will be ₹1,07,600.

In a Nutshell

The SSY scheme can be beneficial to girl children. It is important to meet the eligibility criteria while applying for this scheme. To understand your returns, you can also use the Sukanya Samriddhi Yojana Calculator in excel.