Sukanya Samriddhi Yojana is a government-backed savings scheme aimed at promoting the welfare of the girl child. It was launched in 2015 by the Government of India under the Beti Bachao, Beti Padhao campaign. The scheme provides a reliable and safe investment avenue for parents or guardians to save for their daughter’s education, marriage, or other expenses.

Here are some reasons why SSY is considered a smart option:

Attractive interest rates: The interest rate on SSY is reviewed and revised by the government every quarter. As of January 2022, the interest rate is 7.6% per annum, which is higher than most other savings schemes in India. Moreover, the interest earned on SSY is tax-free.

Long-term investment: The scheme has a long tenure of 21 years, which allows parents or guardians to build a sizeable corpus for their daughter’s future expenses.

Tax benefits: SSY comes under the EEE (Exempt, Exempt, Exempt) category of investments, which means that the investment, interest earned, and maturity proceeds are all tax-free. This makes SSY an attractive investment option for those looking to save on taxes.

Low minimum investment: The minimum investment in SSY is Rs. 250, making it accessible to a wide range of investors. Additionally, one can invest up to a maximum of Rs. 1.5 lakh per annum.

Flexible investment: Parents or guardians can choose to invest in SSY in a lump sum or in regular installments over the scheme’s tenure.

Easy to open: Opening an SSY account is hassle-free and can be done at any authorized bank or post office. All you need is the necessary documents, such as the girl child’s birth certificate, identity proof, and address proof.

Overall, Sukanya Samriddhi Yojana is an excellent investment option for parents or guardians looking to secure their daughter’s future. The scheme offers attractive interest rates, tax benefits, and a long-term investment horizon, making it an ideal investment option for those looking to save for their daughter’s education or marriage.