Dreaming of Sending Your Daughter Abroad to Study? Time to Turn it Into a Reality!

Deprecated: Function wp_get_loading_attr_default is deprecated since version 6.3.0! Use wp_get_loading_optimization_attributes() instead. in /home/kn1zq71gwmom/public_html/wp-includes/functions.php on line 6031

was started by the government of India to provide parents a way to invest money in the future of their daughters and get paid dividends at tax-free interest rates as well. It works much like other plans out there such as PPF, NSC, and other fixed deposit schemes, where you can invest your money and it will accrue interest over time. Though there are some benefits to Sukanya Samriddhi Yojana that sets it apart from the others. Check them out here!

1. An assured return

The Sukanya Samriddhi Yojana Plan is a government-backed scheme that helps parents or grandparents make investments in their daughter’s future.

The minimum sum assured under this scheme is Rs. 1,000 and the maximum amount is Rs. 150,000. Interest rates on these investments are quite high and the investment can be done in three installments with a lock-in period of five years each.

The benefit from this scheme will accrue to the girl child only and not to any other family member.

2. Tax-free growth

One of the best features of this best saving scheme in India is that it allows you to invest your money tax-free. This means that the amount deposited into the account isn’t taxed, and any profits made on your investment will also be tax-free.

The government provides an exemption limit of up to Rs. 1,50,000 every year to encourage people to make investments in their children’s future.

3. Your funds are secure

The idea behind the Sukanya Samriddhi Yojana Plan is to provide a security net to girls as they transition into adulthood. As the Indian society has become more accepting of education and employment opportunities for women, it has also become much more dangerous.

Some estimates place the number of reported rapes in India at over 150,000 per year. With this in mind, the government has recognised the need for financial security for young women and created the Sukanya Samriddhi Yojana Plan.

4. It could reduce your income tax

It is important to take the time now to start planning for your daughter’s future. One way to do this is by investing in a Sukanya Samriddhi Yojana account.

This type of account does not qualify as income and will reduce your income tax liability. So, start putting away some money now so that your daughter has access to it in the future.

5. No risk in the principal amount

One of the best ways to prepare your daughter for her future is to start investing in a Sukanya Samriddhi account. Zero risks in the principal amount means that your daughter has complete control over the money and can use it as she wishes when she wants.

6. Maturity can be extended up to 18 years

When you open a Sukanya Samriddhi Yojana Plan account, the account is automatically passed on to other family members in the event of your death or incapacitation.

Furthermore, if you are unmarried and have no children, but want to leave money behind to someone as a gift when you die, this is one way to do it. It also provides an incentive to women who may not have been able to finish their education before they get married and start having children.

All deposits into a Sukanya Samriddhi account earn interest at 8% per annum. This can add up over time and help increase your child’s inheritance.

Tax benefits are available for those who make contributions into their account each year, just like with any other type of retirement plan.

Also Read: Explore 24 Reasons Why You Should Study Abroad

7. Discipline yourself and your child financially

The Sukanya Samriddhi Yojana Plan allows you to contribute to your daughter’s future in a tax-free manner.

This means that all the interest and profit are free from both income and capital-gain taxes. The money saved in this account is not just used for emergencies, but can also be used as a part of your daughter’s education fund or marriage expenses.

8. The account can be passed on to other family members

If you have a daughter, the Sukanya Samridhi Yojana is a must-have. The account can be passed on to other family members and has a tax exemption at the time of withdrawal. There are also no restrictions or conditions on how it can be used, so it’s an ideal tool for girls who want to set themselves up with financial security early in life.

A girl herself cannot open an account but her father or grandfather may do so on her behalf until she turns 18 years old.

The interest rate offered by this guaranteed future plan may not seem as high as that of others but because it is more than double the rate available in regular savings accounts, it will provide greater returns over time.

The Sukanya Samridhi Yojana also offers life insurance cover up to Rs 1 lakh.

We’re here to help you protect what matters the most. Whether it’s your family or your favourite sports team, we’ve got a plan that fits your needs perfectly. At Canara HSBC Life Insurance – iSelect guaranteed future plan, our goal is to provide you with peace of mind knowing that your loved ones will be taken care of, should something happen to you unexpectedly. We understand how important this is and we want to help make sure that they don’t have to worry about anything except grieving for their loved one; not finances or other insurance claims.


This guaranteed plan allows you to invest Rs 1 lakh in your daughter’s name as per the scheme, which will be locked in for 18 years until she turns 21 years old; and in addition, you can earn interest on this amount without paying tax on it as well.