Benefits of Sukanya Samriddhi Yojana

Founded as part of the government's 'Beti Bachao, Beti Padhao' campaign, Sukanya Samriddhi Yojana or SSY is a child welfare scheme. Investing in this child insurance scheme helps parents or legal guardians to provide financial protection for a child aged 10 years or younger. The Sukanya Samriddhi Yojana,An account in the name of the girl can be opened for 21 years in any of the private and public sector banks. The length of the expenditure under the SSY shall be 21 years from the date of opening of the account.

Also Read:- Why You Should Consider Investing In Child Plans?

Main Benefits of The Policy

A few of the benefits of this policy are discussed below -

1. High Interest

Sukanya Samriddhi Account provides a better interest rate than any other savings scheme that provides financial protection to the infant. The Government shall announce the effective interest rate for that year on a yearly basis, while the interest on your investment is multiplied on an annual basis. Through maturity, funds under your Sukanya Samriddhi Yojana account can multiply.

2. Important savings in taxation

Your donations to Sukanya Samriddhi Yojana for the future of your daughter are eligible for tax deductions under Section 80C of the Income Tax Act 1961. You will then assert tax deductions up to Rs 1.5 lakh spent in the scheme. In addition, tax-saving incentives are also applicable on the interest gained and the balance obtained on maturity or withdrawal.Sukanya Samriddhi Yojana is under the jurisdiction of the Department of Revenue (DOR) and is one of the most common investment schemes with an exempt-exempt (EEE) status.

3. Guaranteed advantages for maturity

Upon maturity, the balance of your account under Sukanya Samriddhi Yojana, including accrued interest, will be paid directly to the infant (or policyholder).As a result, the scheme ultimately lets your daughter become financially stable and motivated until she's mature enough to make life choices on her own. Another advantage of investing under Sukanya Samriddhi Yojana is that the accrued investments will continue to accrue compound interest even after maturity, before it is eventually closed by the account holder.

4. Empower Your Daughter with Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana is one of the strongest investing options for you to set up enough corpus for your daughter when she is 18 years old. The Sukanya Samriddhi Yojana comes with a sovereign promise, while its EEE status ensures that it gives a range of benefits to both the parent and the child.As a result, you can invest a portion of your savings to Sukanya Samriddhi Yojana to make additional donations so that your daughter can financially sustain her aspirations of higher education and marriage facing inflationary pressures.

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Takeaway

Sukanya Samriddhi Yojna is one the best investment opportunities that will help you grow your corpus that can be accumulated by your daughter when she turns 18 years of age. This plan ensures that you have sufficient corpus for your daughter’s future financial needs such as higher education, kick start for her career or marriage expenses.

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.