If you have a girl child, one of the most secure investment options for her future is the government backed Sukanya Samriddhi Yojana. The small savings scheme earns an impressive returns of up to 8.2% p.a., and can be opened by the parents or guardians for a girl child before she turns 10 years old.
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One of the key features of this scheme is that deposits must be made for 15 years, but the account matures after 21 years from the date of opening. Launched under the Beti Bachao Beti Padhao campaign, the SSY scheme also comes with certain limitations. For instance, only one account per girl child can be opened, with a maximum of two accounts per family (exceptions apply for twins or triplets).
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Deposits under this scheme can be made starting from Rs 250 to Rs 1.5 lakh per financial year and comes with tax saving benefits under the old tax regime. While fixed deposits and public provident funds also come with guaranteed returns, the SSY scheme's higher returns gives it an edge over them. On the other hand, its guaranteed returns nature makes it safer compared to stock markets.
Example:
Suppose you decide to invest Rs 5,000 per month into SSY for your daughter's 21st birthday. This means the scheme has to start when she is still an infant, considering the 21-year maturity rule.
- Current returns: 8.2%
- Yearly investment: Rs 60,000
- Child's age: 1 year
- Start period: 2026
- Premium payments till: 2041
- Maturity year: 2047
- Total investment: Rs 9,00,000
- Interest earned: Rs 18.71 lakh
- Maturity value: Rs 27.71 lakh
This means that by 2047, you can save corpus worth nearly Rs 28 lakh for your daughter under this scheme. The scheme comes with tax benefits, including tax-free accumulated interest and final corpus. However, parents need to also account for factors like inflation. While Rs 28 lakh seems like a significant amount today, its purchasing power can be considerably lower after 21 years.
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