Sukanya Samriddhi Yojana: Invest Rs 12,500 per month to get Rs 64 lakh, here’s how

New Delhi: One of the small savings programmes supported by the Indian government is called Sukanya Samriddhi Yojana (SSY). Launched in 2015, this programme allows parents of girls (up to age 10) to open a Sukanya Samriddhi account at any authorised bank or post office. With EEE (exempt-exempt-exempt) status, the SSY scheme offers the highest tax-free return. Under Section 80C of the Income Tax Act of 1961, an investment of up to Rs 1.5 lakh in a single SSY account during a fiscal year is eligible for tax exemption.

The SSY interest rate for Q2FY23 is 7.6%, which is still significantly higher than the inflation rate on average. Therefore, SSY accounts are a good option because they are risk-free if an investor is looking for a savings instrument that can ensure a better financial future for one's girl child.

After 21 years of lock-in, a person will be able to accumulate roughly Rs 64 lakh for their girl child if they invest Rs 12,500 per month, which is the maximum amount of tax-free money allowed under the SSY scheme.

When a person opens an SSY account for a girl child, they can invest for the next 14 years, but they cannot withdraw their entire investment until the girl child is 21 years old. 

If one doesn't opt for the 50% withdrawal option available after the girl child turns 18 and assumes a 7.60% flat SSY interest rate for the entire period, the SSY calculator estimates that one would receive approximately Rs 64 lakh at maturity.