Sukanya Samriddhi Yojana : In today’s time, parents are very worried about the future of their daughters. Given the rising cost of education and the needs of life, a good savings plan is required. To solve this problem, the Government of India launched Sukanya Samriddhi Yojana in the year 2015. This scheme has been specially designed for the welfare of daughters and its main objective is to ensure that no family considers their daughter a burden.
Sukanya Samriddhi Yojana is a long-term investment scheme that provides a strong financial base for the needs of daughters like education and marriage. The biggest feature of this scheme is that it comes with full government guarantee, so investors do not have to bear any kind of financial risk.
Scheme eligibility and account opening process
To participate in Sukanya Samriddhi Yojana, the daughter must be less than 10 years of age. Parents or legal guardians can open this account in the name of their daughter. A minimum amount of Rs 250 has to be deposited to open an account, while the maximum limit is Rs 1,50,000 in a financial year.
This account can be opened in any post office or authorized bank. Documents like daughter’s birth certificate, parents’ identity proof and address proof are required while opening the account. This account can be opened for a maximum of two daughters in a family, although this limit does not apply in case of twin daughters.
Interest rate and investment period
At present, Sukanya Samriddhi Yojana offers an interest rate of 8.02 percent, which is quite attractive compared to other savings schemes. This interest rate is reviewed by the government every quarter and can be changed according to market conditions.
The account holder has to deposit money regularly for 15 years. After this, interest continues to be received till the account matures. The account matures when the daughter attains the age of 21 years or when she gets married, whichever is earlier. The amount received on maturity is completely tax free.
Return Calculation and Example
If a parent deposits Rs 500 every month, the total amount deposited in a year will be Rs 6,000. The total amount deposited in 15 years will be Rs 90,000. As per the current interest rate, this amount can reach around Rs 74 lakh after 21 years. This calculation is based on compound interest and the actual amount may be more or less depending on the change in interest rates.
Similarly, if a person deposits the maximum limit of Rs 1,50,000 annually, a total of Rs 22.5 lakh will be accumulated in 15 years and on maturity, the amount will grow manifold to become a huge sum.
Application process and required documents
Applying for Sukanya Samriddhi Yojana is quite simple. Parents can open an account by visiting their nearest post office or authorized bank. To apply online, one has to visit the official website of the concerned bank or post office. The daughter’s name, date of birth and other necessary information have to be filled in the application form.
The required documents include daughter’s birth certificate, parents’ Aadhaar card, PAN card and address proof. After submitting the application, a passbook and account number is received, which must be kept safe.
Disclaimer: This article is written for general information purposes only. Interest rates, terms and conditions may change from time to time. Please get the latest information from the concerned bank or post office before investing. It is advisable to consult a financial advisor before taking any investment decision.
