The Sukanya Samriddhi Yojana (SSY) is a Centre-run scheme that aims to generate a corpus by parents to meet future expenses for their girl child. Under this scheme, investors are eligible for deductions under Section 80C of the Income Tax Act, subject to a maximum cap of Rs 1.5 lakhs.
The SSY was launched in 2015 to encourage parents to deposit funds to meet the expenses of their girl child's education and marriage. The government offers lucrative interest rates on deposits. The interest rate is compounded annually.
When investment is done with discipline in the SYS, one can withdraw Rs 15 lakh on maturity. The maturity amount is payable to the person in whose name the investment was made.
If an individual invests Rs 3,000 per month, he/she will deposit Rs 36,000 every year. After 14 years, one can withdraw approximately Rs 9,11,574 (as per the current interest rate of 7.6 per annum). As per the rule, an SYS account attains maturity 21 years after it is opened. Accordingly, the amount will become Rs 15,22,221.
One can open an SYS account at a post office branch or any authorised bank branch under the scheme.
The government has set Rs 250 as the minimum annual contribution under the scheme. The maximum contribution is capped at Rs 1.5 lakh. One must invest Rs 250 minimum for up to 15 years, else the account will be closed.
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