There are a lot of programs and schemes launched by the Indian government to create a better future for women. One such plan is the Sukanya Samriddhi Yojana. This scheme was part of the "Beti Bachao Beti Padhao" campaign and was launched in the year 2015. SSY comes with tax benefits, a high rate of interest, and more.
Let's discuss the major perks of choosing this scheme for your girl child's future. Before we dive right into the benefits, let’s first understand how this scheme works.
What is the Sukanya Samriddhi Yojana?
The Sukanya Samriddhi Yojana is a robust plan established for girl children. So, let's talk a little about what this scheme actually is.
Meaning: The Sukanya Samriddhi Yojana is specifically for a girl child. So, the parent or
guardian of the girl child can open this scheme, but only before the girl child turns ten years
of age. After she has crossed 10, it would not be possible to start the scheme. You will have
to deposit an amount into the scheme every month, which will be accumulated over time.
The account will mature when the girl child is 18 years old and can be handled by her
thereafter.
Where Can You Find This Scheme? You can find the Sukanya Samriddhi Yojana in any
nearest post office or registered bank. You can open the account with your child's
documents and start depositing your money.
How Much Can You Invest in the Sukanya Samriddhi Yojana? You can invest a minimum of
Rs. 250, up to Rs. 1.5 lakhs per year in this account.
Why is the Sukanya Samriddhi Yojana Important?
The Sukanya Samriddhi Yojana benefits in the following four ways:
a) Wedding Costs
Did you know what is one of the biggest markets in India? We can say it is the wedding
market. In India, we traditionally tend to follow the customs of having big weddings with
extended families and friends. This turns out to be costlier than expected by a parent or
anyone else bearing this expense.
You might say the dowry is blocked out of the picture because it is illegal for the bride to
give a dowry at her wedding. However, what we are speaking about does not include dowry
in any manner.
A generic wedding, with a guest scale of 100 to 200, costs around 4,00,000 to 5,00,000
lakhs. Accumulating all this money at one go becomes hard. This brings about the
importance of the Sukanya Samriddhi Yojana, even in the modern day.
b) Higher Education
Good education comes at a cost for anyone, irrespective of gender. But why is this scheme
specifically for women? Right? So, here we are with an answer. For ages, Indian households
have prioritised the education of men over women. This is because the ideology always
remained as 'the man takes care of the house and the family.'
The Indian Government wanted to surpass this ideology and bring forward women's
progress. The first step towards this progress involved the education of women. Educated
women gain independence, earning power, and more logical thinking.
This is why there was a need for the Sukanya Samriddhi Yojana to cover the educational
expenses of a girl child. This made sure that the parents would not have to choose whether
to educate the child or not since the funds were already set up behind her education.
Moreover, given the extremely high costs of higher education, it is nearly impossible for
parents to accumulate a corpus that comes up to lakhs together. This is why this scheme
plays such an important role, even today.
c) It Helps Save Tax
While almost all savings and investment schemes today chip off a bit with taxes, the
Sukanya Samriddhi Yojana holds tax benefits. There is a complete tax deduction of the
principal amount that has been invested in the scheme according to the Income Tax Act.
d) Interest Rate Benefit
The most important benefit of this scheme is the interest rate. You earn a 7.6% interest
return on this fund. Let's look at some examples to see how this will look on your returns.
Let us assume:
Your child's age is 10.
You Invest Rs. 50,000 per year.
Your investment starts in the year 2023.
The Outcomes:
Your Total invested amount is Rs. 7,50,000.
Your total interest is Rs. 15,59,193.
The entire maturity value is Rs. 23,09,193.
This says by 2044, you have more than twice the amount you invested.
Relationship Between SSY and Women Empowerment
The fact that this scheme is specifically designed for a girl child brings about the most
discussed aspect for women, 'Independence.' Anyone is independent with a good
educational background and a secure source of income. This is one crucial factor provided to
girl children through this scheme.
Therefore, we can say that the scheme is crucial to the well-being of a girl child when
compared to other sorts of saving schemes. Since:
- It is completely tax-free.
- High rate of interest.
- The girl child can handle this account after she is a major.
- It has small deposits, which are easy to pay off.
- The returns on this scheme are more than twice the invested principal amount.
Conclusion
If you are looking for a savings scheme for your girl child, SSY is a great way to go. You will
have to do it soon since you have time only until she turns 10. Moreover, you know the
different kinds of perks it brings to the forefront, so why not witness it by beginning to
invest in it? It does not have risks, tax does not eat up any of your money, and it is a good
choice for the long term.