International Girl Child Day 2023: How Sukanya Samriddhi Account Can Be Used to Fund Higher Studies of Your Girl Child

Written by The Anand Market

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International Girl Child Day 2023

Every year on October 11th, International Girl Child Day 2023 is observed worldwide to highlight the importance of girls’ education, their rights, and the promotion of gender equality. It is a day that serves as a reminder of the essential role that girls play in society and the need to ensure their well-being and development. In honor of International Girl Child Day 2023, we explore a financial instrument in India that empowers parents to secure a bright future for their daughters – the Sukanya Samriddhi Yojana (SSY) account.

Sukanya Samriddhi Yojana: Empowering Parents for Their Daughters’ Future

The Sukanya Samriddhi Yojana account is a unique and popular savings scheme designed explicitly for the benefit of Indian girls. This government-backed initiative aims to provide financial security and support for the education and future endeavors of girls across the nation. It is an invaluable tool for parents who are committed to securing their daughters’ higher education and ensuring they have a strong foundation for success.

Sukanya Samriddhi Account Interest Rate: A Rewarding Investment

One of the key advantages of the Sukanya Samriddhi Yojana account is its attractive interest rate. Currently set at 8 percent, this interest rate is subject to quarterly adjustments. While the interest rate may fluctuate over time, it consistently provides an excellent return on investment, making it a compelling choice for parents looking to secure their daughters’ future.

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Funding Higher Studies with SSY: A Wise Choice

One of the most significant benefits of the Sukanya Samriddhi Yojana account is its flexibility in terms of usage. Parents who begin investing in the SSY account shortly after their daughter’s birth can contribute for up to 15 years. Deposits can be made on a monthly or yearly basis, offering a variety of savings options to suit different financial situations.

Once the account holder reaches the age of 18, partial withdrawals are permitted for specific purposes, including marriage and higher education. This feature aligns perfectly with the timeline when most children graduate from school and pursue higher education. Personal finance experts recommend the Sukanya Samriddhi Yojana as an ideal choice for parents saving for their daughters’ education, as the investment horizon naturally corresponds with the educational goals of the child.

It’s worth noting that if parents initiate the SSY account when their daughter is older, typically around 4-5 years of age, it might not provide ample time to accumulate sufficient funds for higher studies.

international girl child day 2023
International Girl Child Day 2023

Planning for Your Daughter’s Future with SSY: A Practical Example

To illustrate the potential benefits of Sukanya Samriddhi Yojana, let’s consider a practical example. If a person invests ₹1.5 lakh annually or ₹12,500 per month in 12 installments in an SSY account for fifteen years, and assuming an 8% interest rate, the maturity amount at the time when the girl turns 21 would be approximately ₹63,79,634, as per the Groww Sukanya Samriddhi Yojana calculator. This substantial sum could significantly ease the financial burden of higher education.

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SSY Taxation Rules: A Tax-Efficient Option

In addition to its impressive interest rate and flexibility, the Sukanya Samriddhi Yojana offers attractive tax benefits. Deposits made in SSY qualify for income tax deduction of up to ₹1.5 lakh under Section 80C of the Income Tax Act. Furthermore, the interest earned through the account, as well as the maturity amount, remains tax-free. This tax efficiency makes the SSY account a compelling choice for parents seeking to maximize their savings for their daughters’ future without the burden of heavy taxation.

Invest in Girls’ Rights on International Girl Child Day 2023

The theme for International Girl Child Day 2023, as declared by the United Nations, is “Invest in Girls’ Rights: Our Leadership, Our Well-being.” The Sukanya Samriddhi Yojana perfectly aligns with this theme by empowering parents to invest in their daughters’ well-being and education. By leveraging this financial instrument, parents can secure their daughters’ rights to a bright and prosperous future.

As we celebrate International Girl Child Day 2023, let’s make a commitment to empower the girls of our nation and invest in their education, ensuring they have the opportunities and support they need to become leaders and champions in their respective fields. The Sukanya Samriddhi Yojana is a practical and effective tool for parents who are dedicated to nurturing their daughters’ aspirations and securing their path to success. On this special day, let’s take a step towards building a brighter future for our girls and promoting gender equality by making informed financial decisions for their well-being.