5 Benefits of Sukanya Samriddhi Yojana for Girl Child by the Govt of India

Sukanya Samriddhi Yojana is a savings scheme for the girl child launched as a part of the Government’s 'Beti Bachao Beti Padhao' campaign, in 2015. A Sukanya Samriddhi Account can be opened any time before the girl child turns 10 years old. Under this scheme, a minimum of Rs. 1,000/- and a maximum of Rs. 1,50,000/- can be deposited in a year.

Read more
Premium paid
Insurer pays your premiums in your absence
Invest
₹10k/month your child will get ₹1 Cr Tax free
Tax saving
₹46,800 in tax under Section 80(C)
All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
+91
View Plans
Please wait. We Are Processing..
Plans available only for people of Indian origin By clicking on "View Plans" you, agree to our Privacy Policy and Terms Of Use #For a 55 year on investment of 20Lacs #Discount offered by insurance company Tax benefit is subject to changes in tax laws
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply.
Get Updates on WhatsApp
All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

There are a number of benefits of saving through Sukanya Samriddhi Yojana. Let us highlight five of them:

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

High Interest Rate

Sukanya Samriddhi Account offers an interest rate of 8.6% for current financial year, i.e. FY 2016-17. When compared to other Savings Plans, the interest rate offered by this plan is the highest.

Every year, the Govt. of India declares the Interest Rate for the current Financial Year. Interest on this is compounded yearly, which means that it will be credited yearly. The interest is accrued every month on the lowest balance between 5th and last day of the month.

Income Tax Savings

Income tax is exempted from the contribution to this account under Section 80 C of the Income Tax Act. Exemption on this scheme is available on the interest and also at the time of withdrawal. This scheme is under the authority of Department of Revenue (DOR). DOR will go for a legislative amendment. Moreover, this scheme will also be one of the most tax efficient ones.

Lock-in Period

Lock-in period is one of the best features of this scheme. Twenty one years is the maturity age of the account and this starts from the date when the account was opened or the Marriage of your Girl Child (either of the earlier one). Make sure that the age of your daughter is 18 years at the time of marriage.

The account cannot be operated after the marriage of your child. Parents are required to go for a premature withdrawal once their girl child attains 18 years of age and this can be done only if you require funds for Higher Education.

Only 50% of the account balance can be withdrawn in case of premature withdrawal at the end of the previous financial year. One can deposit money in the account till 14 years from the date of opening of the account. Moreover, the maturity period of the account is 21 years from the date of opening the account.

Guaranteed Maturity Benefits

When your Sukanya Samriddhi Account reaches the maturity date, the account balance including the interest accumulated will be directly paid to the policyholder (Girl Child in this case). This is primarily required to render financial independence to the Girl child and therefore acts as a efficient tool to empower them in India.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Interest even after Maturity

Sukanya Samriddhi Account gives interest to the policyholder even when the scheme reaches the maturity. A unique feature of Sukanya Samriddhi Account is that the interest is accrued on the account even after it is matured and this keeps on going till it is finally closed by the account holder.

Wrapping Up!

One of the best ways to build up a sufficient corpus for the child education plan is to keep aside a major portion of your savings or invest in equities. However, you only need to invest a small portion of the savings in Sukanya Samriddhi Account and reap the benefits in the long run. Looking at the high-interest rate, one can certainly build an adequate corpus to provide a brighter future to your girl child.

Written By: PolicyBazaar - Updated: 19 July 2021

Child plans articles

Recent Articles
Popular Articles
Best Investment Plans for Girl Child in India

18 Oct 2021

The right kind of investment of your hard-earned money is...
HDFC CHILD PLAN FIXED DEPOSIT

18 Oct 2021

Planning for financial goals has become crucial today - be it...
Fixed Deposit for Minor Child in SBI

18 Oct 2021

A fixed deposit or FD is a savings and investment instrument...
Fixed Deposit for Child in HDFC

18 Oct 2021

It becomes imperative to secure the children’s future...
Fixed Deposit for Child in SBI

14 Oct 2021

Securing your child’s future is the most crucial duty for you...
Best Child Investment Plans to Invest in 2021
Planning for the child’s secured future is not an easy task. Most of the people try to create a strong financial...
Best Child Insurance Plans in India
A child insurance plan is a combination of savings and insurance, which help the individuals to plan for the...
Top Child Insurance Plans to Invest
As a parent, your biggest fear in regards to your child might be the constant thought of providing your child...
Best Child Plans to Invest
Upbringing a child and providing them with the best of everything is a great responsibility for every parent. For...
Best Tips to Buy Child Plans
Having children means you must be well prepared financially to pay for their education and other financial...
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL