Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: 4.8
Article rating: 5.0
Article rating: 3.0
Article rating: No rating
Article rating: 5.0
Article rating: No rating
Article rating: No rating
Article rating: 4.5
Article rating: No rating
Article rating: No rating
Article rating: 4.2
Article rating: 5.0
Article rating: 4.0
Article rating: No rating
Article rating: No rating


Let Your Girl Rule the World with Sukanya Samriddhi Yojana

Author: Kavita Mallya/Wednesday, November 29, 2017/Categories: Financial Planning, Invest

Let Your Girl Rule the World with Sukanya Samriddhi Yojana

For those who are conservative investors, the best option of investment is to choose from a government scheme for your child’s future.

The government operates several schemes for children, especially for the girl child. The central government introduced the Sukankya Samriddhi Yojana in 2015, a savings scheme as a part of the ‘Beti Bachao Beti Padhao’ campaign.

This type of account can be opened any time before the girl child turns 10 years old. Under Sukankya Samriddhi scheme, a minimum of Rs 1,000 and a maximum of Rs 1,50,000 can be deposited in a year. This scheme has multiple benefits:

  • High interest rate: Sukanya Samriddhi Yojana interest rate is the highest at 8.6% as compared to any other savings account. This interest rate is for the current financial year. The government changes the rates every year. Interest is compounded yearly and also credited in the account yearly.
  • Income tax exemption: The contribution made to this account is exempted from income tax under Section 80 of the Income Tax Act. The exemption is available on the interest as well as at the time of withdrawal. This scheme is said to be the most tax efficient one. It falls under the authority of Department of Revenue (DOR).
  • Lock-in period: This is one of the striking features of this scheme. The lock-in period, from the time of opening the account, to when the girl child reaches 21 years of age or at the marriage of the girl, whichever is earlier. The account cannot be operated once the girl is married. The funds can be withdrawn prematurely, at the age of 18 years, if the money is needed for higher education. In this case, only 50% of the account balance can be withdrawn. Money can be deposited for up to 14 years after the account is opened.
  • Maturity benefits:  When the account reaches maturity, the amount including the interest will be paid to the policyholder i.e. the girl child. Sukanya Samriddhi Yojana benefits kids as it acts as an efficient tool to provide financial independence to the girl child thus empowering them.
  • Interest after maturity: A unique feature is that interest is paid to the policyholder even once the scheme reaches maturity. It goes on paying interest until the account is finally closed.

When saving for your child, parents usually keep a major portion of their savings aside by investing in equities. But when it comes to the Sukanya Samriddhi Account, only a small amount has to be deposited and it reaps benefits in the long run. The high interest rate can guarantee sufficient corpus to secure a bright future for your child.

Print Rate this article:

Number of views (790)/Comments (0)

rajyashree guha

Kavita Mallya

Other posts by Kavita Mallya
Contact author

Leave a comment

Add comment



Ask the Finapolis.

I'm not a robot
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest



The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free