The primary benefit is that it secures the future of your child financially, Apart from this there are several other benefits, some of them are listed below,
Simple and Hassle-free process of opening a Savings account.: The minimum deposit for opening the SSY account is Rs.250 and this can invest upto a maximum of INR 1.5 lakhs in a financial year. The account’s minimum contribution was initially INR 1000, but now it has been revised to INR 250.
Creates a Financial Corpus for the Girl Child: The Sukanya Samriddhi Yojana creates an opportunity to financially secure a child’s future at a very early age. It paves the way to finance the expenses of the child’s higher education. The SSY scheme allows the guardian or parent to withdraw 50% of the accumulated sum for higher education needs once the girl turns 18.
Premature Withdrawal Rules: When the girl reaches 18 years of age, the scheme’s account holder can make premature withdrawals. In the case of uncertain demise of the parent or any medical emergency, premature withdrawal can be made upon completion of 5 years of the scheme from the date of initiation.
Offers Tax Benefits: Through the SSY scheme, the following tax exemptions can be availed,
Under the U/S 80C of the Income Tax Act, tax exemption can be claimed on the investment made towards the scheme upto a maximum limit of INR 1.5 lakhs.
The interest amount earned through the invested among it tax-free.
The maturity returns are tax exempted under Section 10(10D) of the Income Tax Act.