Sukanya Samriddhi Yojana (SSY) has registered an unprecedented rise in its popularity this year. The scheme has achieved a growth of 41% this year, leading to a steady increase in deposits in this scheme. According to data from the Reserve Bank of India, the outstanding deposits in this scheme were Rs 77, 472 crores in February 2023, which has now increased to Rs 1 lakh crore in February 2024.
Under this scheme, an account can be opened for daughters below the age of 10 years. The account matures at the end of the financial year in which the account was opened, and it matures when the daughter turns 21 years old. Parents can open an account only for their two daughters. If there is a third daughter in the family, her account can be opened only if the second and third daughters are twins.
Benefits of Sukanya Samriddhi Yojana:
- · Tax-free benefits: Both the interest and maturity proceeds under the scheme are tax-free.
- · EEE (Exempt-Boot-Exempt) scheme: The amount deposited in this scheme is tax deductible under Section 80C.
- · Government-backed: This scheme is safe from market risks as it is backed by the government.
Sukanya Samriddhi Yojana offers an interest rate of 8.2%, whereas in PPF it is only 7.1%. Sukanya Samriddhi Yojana is only for daughters below 10 years of age, while any individual can open an account in PPF. Sukanya Samriddhi Yojana is completed in a period of 21 years and there is no provision for extension. On the other hand, the tenure of PPF is 15 years and can be extended indefinitely.
There is also a facility of partial withdrawal under Sukanya Samriddhi Yojana.
Sukanya Samriddhi Yojana is for daughters below the age of 18 years, while any person can open an account in PPF. Sukanya Samriddhi Yojana is completed in a period of 21 years and there is no provision for extension. On the other hand, the tenure of PPF is 15 years and it can be extended indefinitely.
There is also a facility of partial withdrawal under Sukanya Samriddhi Yojana. Up to 50% of the amount can be withdrawn if more money is needed for 12th class or graduation education. However, this limit can sometimes become a hindrance.
If you are planning to invest money for a long period, then Sukanya Samriddhi Yojana can be an ideal option. However, if you are planning to travel abroad in the near future, you should think carefully before opening an account.
The excellence of Sukanya Samriddhi Yojana and its attractive interest rates make it a strong investment option, especially for parents who want to take steps towards securing the future of their daughters.