While the stock market and gold and silver are experiencing volatility, investing in the right place poses a significant challenge for investors, especially if you're considering long-term investments. If you're a parent planning to invest for your daughter's future, this news is for you. We're going to tell you about a government scheme that will ensure you don't have to worry about market fluctuations and will also provide a substantial corpus upon maturity at 21 years.

Every parent dreams of ensuring their daughter's education and marriage are financially safe. If you're also looking to build a substantial fund for the future with small savings, the Sukanya Samriddhi Yojana (SSY) could be an excellent option. This is a central government-funded savings scheme specifically designed for daughters.

The biggest highlight of this scheme is its attractive interest rate. Currently, SSY offers an annual interest rate of 8.2%, which is higher than regular bank FDs and many other savings schemes. Since it's a long-term scheme, it offers the full benefit of compounding. If you continue to invest regularly, you can accumulate a substantial corpus after 21 years.

Who can open an account?

An account can be opened under this scheme in the name of a daughter under the age of 10. Parents or legal guardians can open this account for their daughter. A family can open two separate accounts in the names of up to two daughters. This way, the future of both children can be secured.

Where and how can an account be opened?

SSY accounts can be easily opened at post offices or authorized banks. The daughter's birth certificate, proof of identity and address of the parents, and a photograph are required. The process is simple, and once the account is opened, you can deposit funds at any time of the year.

Starting with a small investment
This scheme requires a minimum annual deposit of ₹250, with a maximum of ₹1.5 lakh. You can deposit in installments or in one go. Investments are required for 15 years after account opening, and the scheme matures at 21. A small amount can be withdrawn for higher education when the daughter turns 18.

Tax Relief
SSY is classified under the EEE category. This means the deposit, the interest earned, and the maturity amount are all tax-free. It also offers tax exemption under Section 80C of the old income tax system. Overall, if you want to secure your daughter's future financially, SSY is a reliable and beneficial government scheme. It offers an easy way to achieve big goals with small savings.

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