Sukanya Samriddhi Yojana (SSY) is the best gift you can give your girl child on International Girl Child Day 2023. The Sukanya Samriddhi Yojana (SSY) account is a government-backed savings scheme for parents with daughters in India. The Sukanya Samriddhi Yojana (SSY) account currently offers an interest rate of 8%, but this rate is subject to quarterly change.
Parents can start investing in the Sukanya Samriddhi Yojana (SSY) account as soon as their daughter is born and continue contributing until she is 14 years old. This means that they have 15 years to save for their higher education, and their savings will grow at an attractive interest rate.
SSY account holders can partially withdraw funds for marriage or higher education once they turn 18, but the withdrawal amount is limited to 50% of the account balance at the end of the previous financial year.
Personal finance experts agree that the Sukanya Samriddhi Yojana (SSY) is a good option for parents saving for their daughters' education because the investment period aligns with the time when the child is likely to graduate and pursue higher education.
If you open a Sukanya Samriddhi Yojana (SSY) account for your daughter when she is over 4-5 years old, it may not be the best way to save for her higher education.
Investing 1.5 lahks annually or ₹12,500 per month in 12 instalments in an SSY account for 15 years at an 8% interest rate will result in a maturity amount of around ₹63.79 lahks, according to the Groww Sukanya Samriddhi Yojana calculator.
The Sukanya Samriddhi Yojana (SSY) offers several tax benefits, including:
Income tax deduction for up to ₹1.5 lakh under Section 80C of the Income Tax Act for deposits made in the account
Tax-free interest earned on the account
Tax-free maturity amount
This makes the SSY a very attractive savings option for parents with daughters.
The theme for International Day of the Girl 2023 is "Invest in Girls' Rights:
Our Leadership, Our Well-being," as stated on the United Nations website.