Sukanya Samriddhi Yojana is a welfare scheme designed for a girl child. It is a fixed interest government backed scheme, providing interest rates higher than PPF, FDs and having a lock in of 21 years. It is targeted to the parents of girl children. Any partial withdrawal of 50% is allowed for education and marriage purposes, when the girl child turns 18 years of age.
The criterion for this scheme is only one account in the name of one girl child.
This account can be opened for a maximum of two girls in a family.
This scheme applies for girl child below 10 years of age.
Account can be opened in post offices and in authorized banks.
Withdrawal shall be allowed for the purpose of higher education of the Account holder to meet education expenses.
The account can be prematurely closed in case of marriage of girl child after her attaining the age of 18 years.
The account can be transferred anywhere in India from one Post office/Bank to another.
The highlights of this scheme are enunciated as below:
The interest Rate is 7.6% p.a, compounded annually, paid out at maturity where the maturity period is 21 years.
The minimum investment amount is Rs 250 while maximum investment amount is Rs 1,50,000 in one financial year.
The tax implications of this scheme:
The principal amount is deductible up to 1.50L
Maturity amount and interest earned is tax exempt.
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