DelhiDesk The Sukanya Samriddhi account, a savings instrument in India for parents with daughters, may not be sufficient for securing their future due to several reasons, according to experts. The account offers government-guaranteed, tax-free returns, but the interest rate is changeable on a quarterly basis and may not be enough to combat high inflation associated with goals like education and marriage expenses. Additionally, the account has a long tenure, is less investor-friendly, has a long lock-in period, and deposits can only be made for the first 15 years. Experts recommend having a mix of equity and Sukanya investments to address these limitations.
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👉 The Sukanya Samriddhi Yojana (SSY) account is a popular savings instrument in India for parents with daughters as it offers government-guaranteed, tax-free returns.
👉 Simply opening an SSY account may not be sufficient for securing your daughter’s future due to several reasons.
👉 The SSY interest rate is changeable on a quarterly basis and may not be enough to combat high inflation associated with goals like education and marriage expenses.
👉 The long tenure of the SSY (21 years) makes it clear that equity investments are the best way to generate inflation-beating returns.
👉 The SSY account has certain restrictions that make it less investor-friendly, such as funds being only used for education and marriage expenses, and the entire corpus remaining.
👉 The SSY has a long lock-in period (21 years) and a peculiar rule that deposits can only be made for the first 15 years.
👉 After a girl reaches 18 years of age, guardians can withdraw money from the account up to 50% of the balance in a financial year.
👉 It is recommended to have a mix of equity and SSY investments to address these limitations.
👉 The minimum amount to open an SSY account is 250, and the maximum investment per year is 1.5 lakh.
👉 Investors should check with certified experts before taking any investment decisions.
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