Sukanya Samriddhi Yojana for the girl child is now becoming a preferred long term investment option which is a zero risk investment with returns 100% tax exempt. To open this account parents need to personally visit post office or 28 Indian banks authorized by Reserve Bank of India. The application process is very simple and requires account opening form to be filled and also provide birth certificate of the girl child, ID and address proof of the parents. Once account is opened after depositing the minimum amount of Rs.1000 by either cash/cheque/demand draft, passbook is provided bearing details of the investment.
The amount received after maturity can be used for your girl child’s marriage, education. Read in detail about the features of SSA.
Here is the table showing interest rate calculation for the investment of Rs. 20,000 done for 14 years i.e. Rs. 2,80,000. When the scheme matures after the girl child reaches the age of 21 years, the amount received would be Rs. 10,52,102 which is a 276% return on investment. In case someone wants premature withdrawal, then you need to wait until the girl child completes 18 years.
For return on investment calculation I’ve assumed 9.1% interest rate. This rate is set by the government for the financial year 2014-2015. However it might change every year and the same would be declared by the government similar to public provident fund. Check out 18 differences between SSA and PPF.
|No. of Years|| Financial Year||SSA Opening Balance (INR)||Investment/Year (INR)||Interest Earned|
|SSA Balance at Year End (INR)|
As per the scheme, you need to invest only for 14 years and thereafter no investments are required. Note that you can invest only in the multiples of Rs. 100. This means that you cannot invest amount such as Rs.15, 500, 20,500 etc. Also it’s not necessary to invest fixed amount every year. You can invest whatever amount you want in any month of the year. But note that the maximum investment limit is Rs. 1,50,000 in any financial year.