If an investor begins investing in the SSY account immediately after the birth of their girl child, the investment might last for 15 years because one can only participate in the plan until the beneficiary child reaches the age of 14.
Sukanya Samriddhi Yojana (SSY) is an investment plan that allows individuals to avoid taxes while also securing their female child’s financial future. The SSY scheme is completely risk-free since it is backed by the government, and it provides higher returns than the majority of other small savings schemes.
An investor can invest in this plan till the girl is 14 years old. They will be able to withdraw half of the maturity amount when the girl reaches the age of 18 and the whole maturity amount when the girl reaches the age of 21.
If an investor begins investing in the SSY account immediately after the birth of their girl child, the investment might last for 15 years because one can only participate in the plan until the beneficiary kid reaches the age of 14.
Sukanya Samriddhi Yojana (SSY) investments also allow investors to benefit from income tax advantages under Section 80C of the Income Tax Act.
Consider the following example: If an investor invests Rs 10,000 per month, they may invest Rs 1.20 lakh in 12 equal installments.
Sukanya Samriddhi Yojana Calculator from Bank Bazaar
If the investor doesn’t ask for a withdrawal of 50% of the maturity amount after their girl gets 18, the child would be eligible to receive the full maturity amount of Rs 52,74,457 when she turns 21.
The interest rate is considered to be 7.6 percent in this computation. The rate at which things happen is always changing.
|Q1: What is Sukanya Samriddhi Yojana (SSY)?|
|Ans- 1: Sukanya Samriddhi Yojana (SSY) is an investment scheme in India that aims to secure the financial future of a female child. It is a government-backed scheme that provides tax benefits and offers higher returns compared to other small savings schemes.|
|Q2: What is the eligibility criteria for participating in the SSY?|
|Ans- 2: The scheme is available for parents or legal guardians of a girl child. The account can be opened for a girl child below the age of 10 years.|
|Q3: What is the duration of the SSY investment?|
|Ans- 3: An investor can contribute to the SSY account until the girl child reaches the age of 14 years. The investment period can last for a maximum of 15 years.|
|Q4: What are the withdrawal rules for the SSY?|
|Ans- 4: Under the SSY, partial withdrawals of up to 50% of the accumulated amount can be made after the girl child reaches the age of 18 years. The full maturity amount can be withdrawn when the girl child attains the age of 21 years.|
|Q5: Are there any tax benefits associated with the SSY?|
|Ans- 5: Yes, investments made in the SSY are eligible for income tax benefits under Section 80C of the Income Tax Act.|
|Q6: Can you provide an example of the potential returns from the SSY?|
|Ans- 6: If an investor consistently invests Rs 10,000 per month for 15 years, the maturity amount at an assumed interest rate of 7.6% could be around Rs 52,74,457 when the girl child turns 21.|
Please note that the interest rates and returns may vary and it is advisable to check the latest updates from the relevant authorities or financial institutions.