Understand this calculation for the Sukanya Samriddhi Yojana: Here is how a corpus of ₹70 lakh will be built for your daughter..

Every parent dreams of ensuring there is no financial shortage for their daughter, covering everything from her education to her wedding. Building a robust financial corpus is essential to realizing this dream. If you are looking for a scheme for your beloved daughter where your money remains completely safe, the Sukanya Samriddhi Yojana (SSY) is an excellent choice. Launched under the Government of India’s ‘Beti Bachao, Beti Padhao’ initiative, this scheme offers attractive returns along with significant tax benefits. Most importantly, it carries absolutely no risk. Here is how you can build a substantial corpus for your daughter.

**Rules for Opening an Account**
This scheme is specifically designed to secure the financial future of girl children. Parents or legal guardians can open an account for a daughter anytime from her birth until she turns 10 years old. This facility is available for a maximum of two daughters per family. However, the government allows for more than two accounts in special circumstances, such as the birth of twins or triplets.

**Flexible Investment Terms**
The deposit terms for this scheme are very flexible. You can start with a minimum investment of ₹250 in a financial year, with an upper limit of ₹1.5 lakh. There is no obligation to deposit the entire amount in a single lump sum; you can make deposits in multiple installments according to your convenience. Contributions are required for only 15 years from the date of account opening, while the account matures after 21 years. This means that even after investments stop at the 15-year mark, your deposited amount continues to earn compound interest for the remaining six years.

**Attractive Interest and Significant Tax Benefits**
The government periodically reviews the interest rates for the Sukanya Samriddhi Yojana. Currently, the scheme offers an annual interest rate of 8.20%. These rates are significantly higher than those offered by bank fixed deposits and other government savings schemes. Additionally, this scheme enjoys ‘EEE’ status. This means you receive a tax exemption on investments of up to ₹1.5 lakh annually under Section 80C of the Income Tax Act. The annual interest earned on the account is entirely tax-free, and the entire maturity amount received after 21 years is also exempt from tax.

How to build a corpus of ₹70 lakh
To fully benefit from this scheme, it is important to understand the calculations. Suppose you invest the maximum amount of ₹1.5 lakh annually in your daughter's name. Over 15 years, your total investment would amount to ₹22.50 lakh. Based on the current annual compound interest rate of 8.20%, the account will mature after 21 years, yielding a corpus of over ₹70 lakh. Please note that the maturity amount depends on the interest rates determined by the government.

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