In today’s time, parents have become more conscious than ever about the future of their daughters. Considering the expenses ranging from education to marriage, it becomes very important to make the right investment in time. In such a situation, if the start is made as soon as the daughter is born, it can be easy to raise a large amount in the future. In such a situation, the government’s Sukanya Samriddhi Yojana emerges as a reliable option, which is not only safe but also helps in generating huge funds in the long run.

What is Sukanya Samriddhi Yojana?

If parents start investing at the time of their daughter’s birth, they can get the full benefit of compounding. Even small amounts turn into big capital over time, which is why experts also recommend starting as soon as possible. Sukanya Samriddhi Yojana is a small savings scheme, which is generally started for daughters. In this, parents can open an account before the daughter turns 10 years old. The objective of this scheme is to create a strong financial base for the daughter’s education and marriage.

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How does the 15-21 rule work in planning?

The most special thing about this scheme is its investment pattern. In this, money has to be deposited only for 15 years, whereas it matures in 21 years. That means, interest is earned on the deposited amount even without investment for the last 6 years. During this period, compound interest increases the fund rapidly. A minimum of Rs 250 and a maximum of Rs 1.5 lakh can be deposited annually in this scheme. If a parent invests a maximum of Rs 1.5 lakh every year, then the total investment in 15 years becomes Rs 22.5 lakh. After this, only interest will continue to be accrued for 6 years. According to the current interest rate, a fund of about Rs 70 lakh or more can be generated on maturity. This is the reason why it is considered a strong financial plan for the future of daughters.

You get big benefits in tax also

This scheme comes in completely tax free category. In this, tax exemption is available on investment, while there is no tax on the interest received. Apart from this, the amount received on maturity is also tax free. This provides more relief to middle class families, apart from this, some conditions also apply in this scheme. For example, when the daughter turns 18, 50 percent of the amount can be withdrawn for studies. The account matures after completion of 21 years. Apart from this, in case of marriage, the account can be closed earlier also, however, it is considered better to run it for the entire period for more benefits.

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