Business Desk – Sukanya Samriddhi Yojana was launched by the government and it is a part of the ‘Beti Bachao, Beti Padhao’ campaign. It is the best investment scheme when it comes to the girl child as the scheme’s aim is to promote financial well-being.
Currently, the interest rate of the scheme is 8 percent and it can be opened for a girl child below the age of 10 years. The tenure is 21 years or until the girl gets married.
Despite its numerous benefits, there are such things you should know before investing. These things are:
Tenure
As you already know the tenure of the scheme is 21 years, which means whether you have an emergency or other critical expenses you cannot withdraw the money before the lock-in period. Premature withdrawals are only allowed in untimely death or any other exceptional case.
Limited Deposit
The minimum investment you can go in this scheme is Rs 250, and the maximum investment is Rs 1.5 lakh per annum in a financial year. This does not offer any flexibility in terms of the investment amount.
Low returns
This scheme offers a higher interest rate but still has a low return compared to other investment options.
Only for girl child
The scheme is only for the girl child, which means you cannot invest in it for your son. Not only girls, but boys also need financial security. So, this is the main disadvantage for families with only one male child.
Tax
Yes, the scheme offers tax benefits. But if you withdraw the money before the maturity period, you will not only lose tax benefits but also have to pay a penalty.
No doubt, the scheme is amazing but before investing in any other scheme. It is better to get information and consider your financial goals.
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