How the Sukanya Samriddhi Yojana Can Help You Save for Your Daughter’s Future

In the past, societal rules held back girls’ dreams and prevented them from even attending school and achieving their maximum potential. However, things have changed, and as mothers, it’s our responsibility to encourage and support our daughters. Also, to promote education for daughters, the Government launched the Sukanya Samriddhi Yojana (SSY) back in 2015 as part of the initiative Beti Bachao, Beti Padhao campaign

Now, let’s dive into this girl child savings scheme – Sukanya Samriddhi Yojana 

What are the Sukanya Samriddhi Yojana Benefits & Key Features?

• Eligibility: An SSY account can be opened for any girl child under the age of 10. Families with up to two girl children can open accounts.
• Interest Rate: Offers an interest rate of 8.2% p.a.* (subject to change as per Government policies)
• Tax Benefits: Deposits up to ₹1.5 lakh per year are tax-exempt under Section 80C of the Income Tax Act. (You can claim this deduction only if you opt for the old tax regime). Additionally, both the interest earned and maturity amount are tax-free.
• Investment Amount: You can deposit between ₹250 and ₹1.5 lakh annually.
• Maturity: The account matures after 21 years from the date of opening. Before the account matures i.e. premature withdrawal, you can do up to 50% of the balance if the girl child is at least 18 years old or has completed the 10th standard.

*w.e.f 1st Oct 2024 to 31st December 2024. Interest rate gets revised by the government on a periodic basis

How to invest in Sukanya Samriddhi Yojana?

You can invest in SSY through post offices and banks across India, making it accessible and convenient for most people. 

Why Moms Choose SSY as an Investment for Daughter’s Future?

Moms often look for a balance between security & fixed returns when it comes to their daughters. SSY is a government-backed and tax-free investment option making it Mom’s first choice. Additionally, knowing that this fund is exclusive to your daughter’s future adds a sense of purpose and security to every contribution you make.

However, it’s essential to diversify your child’s education fund across different asset classes in order to get inflation-beating returns along with stability and fixed returns.

Is SSY Enough in an Inflation-Driven World?

While SSY is a great starting point, it may not be enough if you’re looking to beat inflation. We live in a world where education inflation is rising year on year. Traditional schemes like SSY may offer safety but typically yield returns that barely keep up with inflation.

This is why investing in equity mutual funds is necessary to beat inflation over a longer period of time.

You can check out Lxme’s Child Education Plan which blends 70% equity and 30% debt. Where you can aim for inflation-beating returns along with stability. The last 3 years CAGR of this fund is 15.40%* (as of 4th November 2024). The best feature of this fund is there is no lock-in period & it is not gender specific, you can invest for your boy child as well. Blending your child’s education portfolio with Lxme’s Child education Plan along with SSY can give you optimized returns.

*Mutual funds investments are subject to market risks, read all scheme-related documents carefully. These returns are based on past fund performance and do not indicate future performance growth. 

How to Plan for Your Daughter’s Future: A Simple 3-Step Guide

1. Estimate Future Costs:
   • Consider factors like your child’s age, the age you’ll need the funds (e.g., college admission age), and current costs for higher education.
   • Keep inflation in mind (usually around 8%).
2. Calculate Your Goal and Investment Needs:
   • Use a child education calculator, like the one on the Lxme app, to input details and determine the amount you need to save.
3. Explore Growth-Oriented Investments:
   • After securing SSY for foundational savings, check out Lxme’s child education plan which is a diversified and expert curated fund.

The Sukanya Samriddhi Yojana can be one of the investment options to begin your journey in securing your daughter’s future. But it’s essential to be a smart women investor and grow money at a faster pace to beat inflation.

Let’s help each other secure our children’s futures together!

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