Investing 10,000 In This Modi Govt Scheme For Daughters Will Yeild 37.68 Lakh

The Sukanya Samriddhi Yojana (SSY), launched by Prime Minister Narendra Modi in 2015, is a government-backed savings scheme aimed at ensuring the financial security of daughters. As a part of the "Beti Bachao Beti Padhao" initiative, the scheme primarily seeks to alleviate the financial burden associated with daughters' education and marriage.

Key Features and Benefits

The SSY offers tax benefits and competitive interest rates to investors. Accounts can be opened for daughters under 10 years of age, with annual contributions ranging from a minimum of Rs 250 to a maximum of Rs 21.5 lakh. The scheme is eligible for tax deductions under Section 80C of the Income Tax Act, 1961.

Interest Rate and Investment Returns

The interest rate for SSY is revised quarterly. For the period from July to September 2024, the rate stands at 8.2 per cent per annum, with interest compounded annually.

For example, if an investor starts an account for a 5-year-old daughter and invests Rs 10,000 monthly (Rs 1.2 lakh annually), they can expect a maturity amount of approximately Rs 75.56 lakh after 21 years. Of this, Rs 17.93 lakh would be the principal investment, and Rs 37.68 lakh would be the interest earned.

Alternatively, if an investor contributes Rs 1.5 lakh annually, the maturity amount would be around Rs 76.98 lakh, with Rs 22.5 lakh as the investment and Rs 47.3 lakh as the interest.

Lock-In Period

The SSY has a lock-in period of 21 years. For instance, if an account is opened when the daughter is 5 years old, the account will mature when she turns 26. This long-term investment scheme encourages financial discipline and offers substantial returns upon maturity.

With its combination of tax benefits, attractive interest rates, and the long-term financial security it provides, the Sukanya Samriddhi Yojana remains a popular option for parents looking to secure their daughters' future.