Investment: Invest ₹250 to get ₹1 lakh; government scheme offers 8.2% interest..

Parents worried about raising a large sum for their daughter's education and marriage no longer need to stress. There is a government scheme that allows you to easily build a fund worth lakhs. We are talking about the Sukanya Samriddhi Yojana (SSY). It is a government savings scheme where one can start investing with a small amount and build a substantial corpus through long-term savings. This scheme is specifically designed for the future of daughters. The interest rate offered is also considered higher than that of a standard savings account.

A key feature of this scheme is the tax benefit it offers. Parents or guardians can open an account in the daughter's name, provided she is under 10 years of age. Contributions ranging from a minimum of ₹250 to a maximum of ₹1.5 lakh can be made in a financial year. Here are the details regarding how money is deposited, when it can be withdrawn, and when the account matures.

**Account opened for a daughter under 10 years of age**
The Sukanya Samriddhi Yojana account is opened in the name of a girl who is under 10 years old at the time of opening. Parents or legal guardians can open this account. Generally, a maximum of two accounts can be opened per family—one for each of two daughters. However, in cases of twins or triplets, the facility to open additional accounts may be available under specific rules.

The account can be opened at a post office or at banks authorized for the scheme. Investments can start with as little as ₹250. A maximum deposit of ₹1.5 lakh is permitted per financial year.

**Deposits required for 15 years**
Under this scheme, deposits must be made for 15 years after the account is opened. However, the total tenure of the account is 21 years, meaning the investment period and the maturity period differ. Even after the 15-year deposit period ends, the account continues to earn interest, and the accumulated amount keeps growing. The scheme offers an annual interest rate of 8.2%. However, since the government periodically revises interest rates for small savings schemes, it is advisable to check the current rate before investing. Interest is compounded annually, meaning interest is earned on the accumulated interest as well.

How much will you get by investing ₹250?
If you deposit just ₹250 per month in the Sukanya Samriddhi Yojana, the corpus could grow to approximately ₹1.45 lakh over 21 years, assuming an annual interest rate of 8.2%.
Total investment: ₹250 × 12 × 15 years = ₹45,000
Estimated maturity value: Approx. ₹1.45 lakh
Estimated interest earned: Approx. ₹1 lakh
Please note that the government may revise interest rates from time to time; therefore, the actual maturity amount may vary.

Withdrawal of up to 50% for education
Generally, the entire amount cannot be withdrawn from the Sukanya scheme before maturity. However, under the rules, up to 50% of the funds can be withdrawn for the daughter's higher education. This facility becomes available once the daughter attains the age of 18.
Additionally, the account can be closed prematurely for the daughter's marriage, subject to certain conditions. Rules for premature closure may also apply in special circumstances, such as medical emergencies.

Account matures after 21 years.
The Sukanya Samriddhi Yojana account matures 21 years from the date of opening. Upon maturity, the accumulated corpus and the accrued interest are paid to the account holder. A major advantage of the scheme is its tax treatment; it offers tax benefits on eligible investments, interest earned, and the maturity amount, placing it in the 'EEE' (Exempt-Exempt-Exempt) category.

Thus, the SSY serves as a long-term savings option for parents who wish to gradually build a fund for their daughter's education and future major expenses. However, it is important to check the prevailing interest rates and withdrawal rules before investing.

Disclaimer: This content has been sourced and edited from News18 Hindi. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.