The Sukanya Samriddhi Yojana is among the best-known government-backed savings schemes in India to keep the financial future of a girl child secure. Being one of the big banks in India, SBI offers this scheme with attractive interest rates and tax benefits.
A parent or guardian can open an SSY account in the name of their daughter and start investing with the minimum amount of ₹1,000, though larger amounts such as ₹20,000 would help amass a huge corpus with time.
What Is Sukanya Samriddhi Scheme?
The SSY scheme was launched under the Beti Bachao Beti Padhao initiative to accumulate savings for a girl child’s education and marriage. It is a long-term savings scheme with a guaranteed rate of return, offering tax benefits under Section 80C. The account can be opened for girls below the age of 10, and deposits can be made till the time the girl attains the age of 15. The scheme matures 21 years from the date of opening of the account, thus providing a big corpus for her future needs.
Working of SBI SSY Account
Within the SBI SSY account, parents may deposit any amount from ₹1,000 to ₹1.5 lakh during a financial year. The current interest rate is 8.1% per annum (recent update), compounded annually. Deposits up to ₹1.5 lakh qualify for a tax deduction under Section 80C, increasing the scheme’s tax efficiency.
An Example of Investing 20,000 in Your Daughter’s Name
Let us, for instance, take a parent who deposits ₹20,000 yearly in an SSY account for their daughter. The increasing investment corpus might be seen below for successive years. Assuming the current interest rate of 8.1%, and deposits for 15 years (maximum time for contribution), the corpus can become substantial:
| Year | Annual Deposit (₹) | Total Contribution (₹) | Accumulated Interest (₹) | Approx. Balance (₹) |
|---|---|---|---|---|
| 1 | 20,000 | 20,000 | 1,620 | 21,620 |
| 5 | 20,000 | 1,00,000 | 46,324 | 1,46,324 |
| 10 | 20,000 | 2,00,000 | 1,16,548 | 3,16,548 |
| 15 | 20,000 | 3,00,000 | 3,23,000 | 6,23,000 |
As demonstrated in the table, a yearly investment of ₹20,000 for 15 years will grow into ₹6.23 lakh, making it a rightful, safe investment for any future needs of your daughter.
Virtual Benefits of SBI SSY
Having the virtual advantage of SBI SSY, the scheme offers so many benefits. First of all, it assures guaranteed returns with interest payable and compounded annually. Secondly, it provides tax benefits under Section 80C, which reduce your taxable income. Third, the scheme inculcates a habit of disciplined long-term savings for various important milestones in the life of a girl child, such as education or marriage.
Conclusion
With an SSY account opened in the name of your daughter, you would hence invest ₹20,000 every year through SBI to build up a corpus of more than ₹6 lakh at the time of its maturity. It is one of the safest government-backed investments, offering tax benefits and building a long-term financial security for your daughter. Early start and regular contributions could go a long way toward fulfilling her goals for the future.