Any person is trying to improve the future of his children as well as himself. If we talk about the economic scale, then it is often a big challenge to collect money for the higher education and marriage of daughters. It involves both saving and investment. Experts emphasize that we should start inculcating the habit of saving and investing from an early age i.e. starting a job. If we talk about the daughter, then there is Sukanya Samriddhi Yojana (SSY) from the government to ensure the bright future of the daughters. Under this scheme, parents can open an account in the name of their daughter younger than 10 years. By investing in this scheme, parents can raise money for their daughter’s higher education and marriage expenses. To understand this investment option better, we spoke to Sebi Registered Investment Advisor Jitendra Solanki.
SSY Interest Rate, Interest Rate
Solanki said, if a person wants to invest for his daughter then Sukanya Samriddhi Scheme is the best. In this account can be opened for maximum two daughters. He said, in the account opened under this scheme, a maximum of Rs 1.5 lakh can be deposited annually. Jitendra Solanki said, in comparison to all the savings schemes of the government, the interest on Sukanya Samriddhi scheme is higher. The rate of interest on Sukanya Samriddhi Scheme is still at 7.6 percent. This is the compound annual interest rate. The government announces the interest rate at the beginning of every quarter. If a person starts investing in this scheme at the young age of the daughter, then he can invest in this scheme for 15 years.
How much can you invest
This account can be opened with a minimum amount of Rs.250. Solanki said, any person can invest a minimum of Rs 250 to a maximum of Rs 1.5 lakh in a year in this scheme. The amount can be deposited in this account in lump sum or in instalments. The amount can be deposited in the account till the maximum completion of 15 years from the date of opening of the account. The interest earned in this scheme is tax free.
Income tax exemption
Jitendra Solanki says, You can make partial withdrawal when the daughter has passed 10th standard or turns 18. Its maturity period is 21 years. Income tax exemption is available on investment up to Rs 1.5 lakh every year in SSY. One can get the benefit of exemption under section 80C by investing in this scheme.
A special feature of this scheme is that Sukanya Samriddhi Yojana account can be easily transferred from one bank or post office to another bank. For this you have to fill the application form and submit it along with the required documents in the respective post or bank.
