EMPOWERING YOUR DAUGHTER WITH SUKANYA SAMRIDDHI YOJANA

The Comprehensive Guide to Sukanya Samriddhi Yojana

 

Enabling our daughters to pursue their aspirations independently is a shared aspiration for all parents worldwide. Thankfully, the government has offered support through the Sukanya Samriddhi Yojana (SSY), a powerful instrument for safeguarding our daughters' financial futures. In this detailed guide, we explore the various aspects of SSY, uncovering its characteristics, advantages, and factors to consider, aiding you in making well-informed choices for your daughter's future.

 

Investing for Her Tomorrow, today:

Introduced in 2015, SSY serves as a cornerstone of the "Beti Bachao, Beti Padhao" initiative, aimed at nurturing financial security for girls aged 0-10. Each guardian can establish one account per girl child (up to two accounts for two different girls) at post offices or specified banks. Deposits are allowed for 14 years, and the account continues to accrue interest, thereafter, reaching maturity 21 years from the date of opening.

 

KEY FEATURES:

🔹 Singular Account: Open one account per girl child, with a maximum of two accounts for two different girls.

🔹 Age Limit: Initiate accounts until the girl reaches 10 years of age.

🔹 Accessibility: Available at post offices and designated public banks.

🔹 Investment Tenure: Deposit for up to 14 years.

🔹 Continued Interest: The account continues to earn interest after the deposit period.

🔹 Flexible Closure: Close the account after 21 years, aligning with long-term financial goals.

🔹 Tax Benefits: Enjoy tax-free deposits, interest, and maturity amounts under Section 80C.

🔹 Minimal Initial Deposit: Start with a nominal yearly deposit of ₹250.

🔹 Generous Investment Ceiling: Contribute up to ₹1.50 lakh annually.

🔹 Partial Withdrawals: Withdra

w up to 50% after the account holder turns 18.

 

 

POSITIVES:

 

🔹 Accessibility: Start with just ₹250 initial deposit and enjoy tax-free returns, making SSY accessible to families across all income levels.

🔹 Government Guarantee: Rest assured with a 100% guarantee on both capital and returns, providing peace of mind to investors.

🔹 Tax Advantages: Enjoy tax deductions under Section 80C and exemption on interest and maturity amounts, maximizing your savings potential.

🔹 Education-centric Planning: With a 21-year tenure, SSY is perfectly aligned with the timeline for higher education expenses, enabling strategic financial planning.

 

 

NEGATIVES:

 

While Sukanya Samriddhi Yojana (SSY) presents numerous advantages, it's crucial to acknowledge potential challenges:

1.       Interest Rate Fluctuations: The scheme's interest rate, presently at 8.2%, is subject to quarterly fluctuations. Vigilant monitoring is necessary to stay updated on any changes.

2.       Long Tenure: With a lock-in period of 21 years, SSY may pose challenges for investors requiring more immediate liquidity. It's essential to consider long-term financial goals before committing to the scheme.

3.       Limited Accessibility: SSY's strict guidelines on fund usage may limit flexibility. Funds are primarily earmarked for education and marriage expenses, restricting other potential uses.

 

 

Creating a ₹80 Lakh Fund for Your Daughter:

With disciplined savings and strategic planning, you can actualize your daughter's dreams through SSY:

1.     Invest ₹1.5 lakh annually for 15 years, totalling an investment of ₹22,50,000.

2.     At the prevailing interest rate of 8.2%, your investment would yield approximately ₹43,18,303 at maturity (your investment stops here).

3.     However, since the investment continues till your dear daughter is 21, she would receive a total of ₹81,12,061, surpassing ₹80 lakh by age 21. This provides a robust financial foundation for her future endeavours.

 

 

Sukanya Samriddhi Yojana (SSY) serves as a beacon of hope for parents striving to secure their daughters' financial futures. With its diverse features, tax advantages, and long-term investment horizon, SSY underscores the government's dedication to empowering girl children nationwide. By harnessing SSY's potential, parents can embark on a journey of financial empowerment, paving the way for their daughters to pursue their aspirations with confidence and resilience.

 

CONCLUSION:

While Sukanya Samriddhi Yojana (SSY) offers attractive benefits, stability, and security, it's important to remember that it's just one piece of your financial planning puzzle. Exploring other avenues like equity investments for long-term wealth creation can further enhance your financial portfolio.

Our experience and data show that equities tend to provide higher returns over a time horizon of 10 years or more. Therefore, considering a combination of SSY and equity mutual funds could offer an ideal approach to diversify your investments and maximize returns.

Wishing you all the success and fulfilment as you embark on the journey of securing a brilliant future for your daughter.

Note: This article is for informational purposes only and does not constitute financial advice. Please consult a qualified financial advisor before making any investment decisions.

 

 

Regards

Srikanth Matrubai

Author: Don’t Retire Rich

 

 

All the best,
Regards,
Srikanth Matrubai

MUTUAL FUND DISTRIBUTOR

REBALANCE VOLATILITY CERTIFIED COACH

Srikanth Matrubai, Author of the Amazon Best Seller DON'T RETIRE RICH

You are strongly encouraged to consult your financial planner before making any decision regarding this investment. The views expressed here are the author's personal views and should not be interpreted as a recommendation to invest/avoid.

 

Srikanth Matrubai Author of the Amazon Best Seller DON'T RETIRE RICH

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