Pradhan Mantri Sukanya Yojana is a scheme that caters to the financial need of a girl child and helps parents save for their future. Parents or legal guardians can open a savings account for their girl child before she turns 10 under this programme.
Benefits of Sukanya Samriddhi Yojana
1. Small opening account balance
Contributors can open a savings account in the name of a girl child by paying a small amount of Rs.250 only, which is nominal and can be paid easily. Also, investors should make continual deposits in the account to ensure it is functional. They need to make the minimum deposit each year for the 15 years of deposits; the maximum amount they can deposit in the account within a year is Rs.1.5 lakh.
This covers customers of all economic background as they can continue making deposits for a better future of their child.
2. Save for educational expenses and wedding expenses
Since higher education comes along with costs which can be difficult to pay by the parents, this program caters to their need. Individuals can make deposits for 15 years and may withdraw the amount partially to fund educational expenses of the child. Likewise, after attaining the age of 18, if the girl wishes to marry, they can withdraw the amount to meet such expenses.
3. Tax benefits
Beneficiaries of Pradhan Mantri Sukanya Yojana can avail tax exemption under Section 80C. The exemption applies to both deposits as well as the interest earned.
4. Lucrative rate of interest
The scheme offers an interest rate of 8.5% on the deposit amount, which is quite high compared to the rate offered in a general savings account. This is one of the best schemes to save money that can be used later to fund educational and wedding expenses of their girl child.
5. Premature withdrawal under emergency requirements
Beneficiaries can withdraw money after attaining the age of 18 for educational expenses and wedding expenses. They can withdraw 50% of the saved funds by providing essential documents like a proof for admission in a college, etc. to support their withdrawal claim.
6. Lock-in period
The programme comes with a lock-in period of 21 years before which withdrawing funds isn’t possible. One can withdraw funds partially from Sukanya Samriddhi account only –
- In case of marriage, after attaining the age of 18.
- In case of higher education (documents in support should be provided).
Consequently, this long-term investment plan makes it easier to save funds for a better future of girl child.
Individuals looking for a short-term investment plan can look for other simple ways to strengthen their finances and become financially equipped to survive unforeseen monetary troubles.
7. Multiple modes of deposit
Contributors or the beneficiary herself can deposit funds in the savings account for 15 years from the date of account opening via different modes available like cash, cheque, demand draft, e-transfers, etc.
8. Convenient revival
In case the account becomes inactive because of non-payment of deposits, one can easily revive the account by paying a nominal fee of Rs.50 and the minimum yearly deposits should be met for that term.
9. Easy transfer
In case the account holder is shifting to a new city within India, they can have their account transferred to the new location by filling up an application for the same.
Those who seek a comparatively short-term investment plan that is equally beneficial and secure can invest in a fixed deposit scheme. Bajaj Finance offers such investment instrument with higher returns catering to the financial needs of customers. Financial institutions also let users evaluate the maturity amount and interest pay-out with the FD interest rates calculator so that they can estimate the returns beforehand.
These benefits of Pradhan Mantri Sukanya Yojana will help individuals save substantial funds over a period that can be used for educational, wedding expenses, etc. Saving funds for a better future of their girl child can be met conveniently and availing higher returns add to their experience.