Today, every parent is looking for a safe investment for their daughter's education and marriage. Amidst the fluctuations in the stock market and mutual funds, post office savings schemes offer a great deal of security and guaranteed returns. One such excellent scheme is the Sukanya Samriddhi Yojana, also known as the "Kanya Sukanya Yojana."

What is the Sukanya Samriddhi Yojana?

This is a small savings scheme run by the central government specifically for daughters. The scheme aims to meet the education and marriage expenses of daughters without any financial burden. This account can be opened in the name of any Indian citizen's daughter who is 10 years of age or younger at any post office or authorized bank.

Investment and interest information

The most significant feature of this scheme is its minimum investment limit. A minimum annual deposit of ₹250 is mandatory, with a maximum limit of ₹1.5 lakh per year. Currently, the government offers an interest rate of 8.2% per annum on this scheme, which is significantly higher than most bank fixed deposits. The government reviews interest rates quarterly.

How will the fund of ₹71 lakh be created?

The scheme's math is simple and attractive. If a person invests a maximum of ₹1.5 lakh annually in their daughter's account, they must deposit this amount for 15 years. After this, the account will continue to earn compound interest for the next six years. At the current 8.2% interest rate, the total amount at maturity in 21 years will be approximately ₹71,82,119. The principal amount deposited is ₹22,50,000, while the interest earned is approximately ₹49,32,119.

Big tax relief

Sukanya Samriddhi Yojana falls under the "EEE" category, meaning "exempt-exempt-exempt." This means that the amount invested is eligible for income tax exemption under Section 80C. Furthermore, the annual interest earned and the entire maturity amount are also completely tax-free. This is the icing on the cake for families looking to save tax and plan for a secure future.

Some important terms and conditions

Under the scheme, only one account can be opened in the name of a daughter, and this benefit can be availed for a maximum of two daughters in a family. In case of twins or triplets, a third account is permitted under special circumstances. The facility also allows for 50% withdrawal of the account amount for higher education once the daughter turns 18.