E33 Sukanya Samriddhi Yojana

Sukanaya Samriddhi Yojana has become an important investment option for the parents with a girl child.

What is this scheme?

When is the right time to start investing?

In this episode Anmol, talks about all these and more...

What are the tax benefits?

How much and for long do you have to invest?

Is there any lock-in period?

Are there any burning questions giving you sleepless nights? Write to us at anmol@7prosper.com

Disclaimer: This podcast is for educational purposes only. Anything said should not be construed as advice. If you're interested in our financial planning service, visit us at: www.7prosper.com


Hi Guys. I am Anmol Gupta from the show "Money Ki Baat".

If you have a new born daughter or your daughter is below 10 years of age, then you must know about Sukanya Samriddhi Yojana.

In this episode I am going to talk about what is Sukanya Samriddhi Yojana and what are it's advantages if your daughter is below 10 years of age.

So "Sukanya Samriddhi Yojana" is a governement backed scheme under "Beti Bachao Beti Padhao Yojana". Since it is a government backed scheme, it is risk free. You are unlikely to incur a loss, if you invest in this scheme.

Also this scheme is a debt instrument which means you are lending money to someone to earn interest. So this scheme doesn't involve risks similar to the ones that are involved in stock markets. The interest or returns that you get from this scheme is not as high as equity investments which are around 12-15%.

But, it will give you more returns than a Fixed Deposit or a Recurring Deposit. And a very important fact is, this scheme is completely risk free. Currently, it's interest rate is 7.6% per annum. But it can change every quarter.

You can only invest in Sukanya Samriddhi Yojana, if you have a daughter below 10 years of age. The main purpose of this scheme is to save money for your daughter's future. The maturity period of this scheme is 21 years which means your account will mature after the completion of 21 years from the date of opening your account,

That is the day when you can withdraw your money.

Let's suppose, if your daughter is 2 years old and you have started to invest in Sukanya Samriddhi Yojana then you can withdraw all your money either when your daughter will the reach 23 years of age or, when your daughter gets married before completion of 21 years of maturity period.

Therefore, Sukanya Samriddhi Account matures under 2 conditions:

1. Completion of 21 years from the date of opening your account.

2. Whenever your daughter gets married.

The account can mature on either of the days whichever is earlier.

You can use this money, either for your daughter's Higher Education or for her Marriage. Therefore, this scheme is good for your daughter's future goals like Higher Education or Marriage. To fulfil those purposes, you don't have to invest all your money in Sukanya Samriddhi Yojana. If you want to do a risk-free investment for your daughter, you can invest in Sukanya Samriddhi Yojana. Now let's talk about the features of this scheme and its terms and conditions.

The most important benefit of this scheme is that you get tax benefit. The amount that you invest in this scheme can be claimed under Section 80C and you also need not pay any tax on the interest that you get at it's maturity.

After opening Sukanya Smariddhi Yojana account, you need to invest atleast 250/- every year for the next 15 years. Maximum you can invest upto 1,50,000/- in a year.

The contributions only need to be made for 15 years. Post 15 years, you will receive interest till the account matures.

Premature withdrawal is allowed when your daughter reaches 18 years of age. You can withdraw 50% of the account balance as on that date, i.e. when your daughter will be 18 years old and remaining amount at the time of it's maturity.

Sukanya Samriddhi has a condition that you can open an account for 2 girls in total.

So in my opinion, Sukanya Samriddhi Yojana is a safe scheme with higher than Bank Deposit returns to invest some amount for your daughter's future, specifically for Higher Education or Wedding.

And as added bonus, you will get full tax benefit.

So guys, I hope, I was able to clear some of your doubts regarding Sukanya Samriddhi Yojana, when you should and should not invest in this scheme if you have a daughter.

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Thank You!

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