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Is Sukanya Samriddhi Yojana Worth Investing In?

Published On Jan 18, 2022 10:10 AM By InsuranceDekho

Saving for their child's future is a major financial goal for the majority of parents. And, through its Sukanya Samriddhi Yojana, the government assists parents in saving for their daughters (SSY). A parent or guardian of a girl child between the ages of zero and ten years old can open an account in the child's name under SSY. Deposits can be made monthly or yearly for the next 15 years from the date the account is opened. After the 15-year period, no investments can be made, but the account continues to earn interest for the next seven years and matures after 21 years. Withdrawal is only possible after the child reaches the age of 18, subject to certain conditions.

Is Sukanya Samriddhi Yojana Worth Investing In?

How Does the Sukanya Samriddhi Yojana Assist You in Safeguarding the Future of Your Child?

Sukanya Samriddhi Yojana offers the following benefits to help you financially secure your child's future:

1. Sukanya Samriddhi Yojana is a government programme that allows parents to set up an account for their female child's future expenses.
2. Accounts in the Sukanya Samriddhi Yojana can be opened for as little as INR 250.
3. This programme can help you save money for your female child's education.
4. Sukanya Samriddhi Yojana accounts opened after October 2018 earn an interest rate of 8.6%.
5. In exceptional circumstances, such as the unexpected death of a parent, partial withdrawals are permitted under this plan.

Why Should You Consider Sukanya Samriddhi Yojana Investing?

Here are a few of the policy's benefits that make it worthwhile to purchase:

1. High interest

Sukanya Samriddhi Account pays a higher interest rate than any other savings programme for infants' financial security. The government will publish the effective interest rate for that year once a year, whereas the interest on your investment will be doubled once a year. Your Sukanya Samriddhi Yojana account balance may increase over time.

2. Empower Your Daughter with the Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana is one of the best investment options for you to start building a corpus for your daughter once she turns 18. The Sukanya Samriddhi Yojana is backed by a sovereign guarantee, and its EEE status ensures that both the parent and the child benefit. As a result, you can contribute a portion of your savings to the Sukanya Samriddhi Yojana to make additional donations, allowing your daughter to fund her higher education and marriage goals despite inflationary pressures.

3. Maturity Benefits

When your Sukanya Samriddhi Yojana account matures, the balance, including any accumulated interest, will be transferred directly to the newborn (or policyholder). As a result, the programme allows your daughter to become financially secure and motivated until she is old enough to make her own life choices. Another advantage of investing in the Sukanya Samriddhi Yojana is that the accumulated assets will continue to earn compound interest even after the account has reached maturity, unless the account is terminated by the account holder.

4. Significant Tax Reductions

Section 80C of the Income Tax Act of 1961 allows you to deduct funds to Sukanya Samriddhi Yojana for your daughter's future. You'll be able to claim tax benefits up to Rs 1.5 lakh spent on the plan after that. In addition, tax breaks are available on the interest earned as well as the balance received at maturity or withdrawal. The Department of Revenue (DOR) administers the Sukanya Samriddhi Yojana, which is one of the most popular exempt-exempt (EEE) investment programs.


Sukanya Samriddhi Yojna is one of the best investment options available, and it can help you build a corpus for your daughter when she reaches the age of 18. Sukanya Samriddhi Yojana is not a life insurance policy, but rather a high-yielding account that will ensure that your female child has enough money to meet her future financial needs. This strategy ensures that you have enough money set aside for your daughter's future financial needs, such as higher education, a career jumpstart, or wedding expenses.

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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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