Q. I am planning to invest in Sukanya Samriddhi Yojna for my 2-year old daughter. Is it a good scheme and what are it benefits? Alok Sharma
A. Sukanya Samriddhi Yojna (SSY) is an investment scheme designed for the benefit of girl children. It helps them gain access to adequate funds when they attain 18 years of age, thus providing them with the money to address their future needs, such as higher education, marriage, etc.
You can open an SSY account if your girl child is below 10 years of age. Currently, Sukanya Samriddhi Yojana offers an interest rate of 8.4% pa, which is quite attractive in comparison with Fixed Deposits and other small savings schemes offered by banks. SSY also provides tax deductions up to Rs.1.5 lakh per financial year under Section 80C of the Income Tax Act. Here are some of the key benefits of investing in Sukanya Samriddhi Yojana for your girl child:
- High Interest rate
- Tax benefits under Section 80C of the Income Tax Act
- It inculcates the habit of saving
- It comes with a lock-in period, so you can’t liquidate it before the girl child attains 18 years of age
- The minimum investment amount is as low as Rs.250
Sukanya Samriddhi Yojana is definitely one of the best low-risk investment products for your girl child. However, if you want higher returns on investment, you can explore other investment options like Systematic Investment Plans in mutual funds and units of Sovereign Gold Bonds. Adding more investment instruments to your portfolio will also offer the benefit of diversification and lower the overall risk of your investments.
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