The Sukanya Samriddhi account is a well-liked financial savings instrument in India for folks with daughters because it presents government-guaranteed, tax-free returns. Nonetheless, merely opening a Sukanya Samriddhi Yojana (SSY) account will not be adequate for securing your daughter’s future because of a number of causes.
High 6 causes to not spend money on Sukanya Samriddhi Yojana
1)Sukanya Samriddhi account rate of interest
Sukanya Samriddhi Yojana (SSY) at the moment presents an rate of interest of 8 per cent. Nonetheless, this SSY rate of interest is changeable on a quarterly foundation. This will not be sufficient to fight the excessive inflation related to targets like training and marriage bills, stated Amit Gupta, MD, SAG Infotech.
The Sukanya Samriddhi Yojana is an in depth investing technique. So, it does not present a return that beats inflation when in comparison with mutual funds, stated Vinit Khandare, CEO & Founder, MyFundBazaar.
2) Sukanya Samriddhi account lengthy tenure
Contemplating the lengthy tenure of the SSY (21 years), it turns into clear that one of the simplest ways to generate inflation-beating returns in the long run is thru fairness investments. Amit Gupta stated that for targets which are greater than 10 years away, it’s advisable to allocate extra funds to fairness funds relatively than relying solely on debt investments, except you’re a extremely conservative saver.
3) Sukanya Samriddhi account: Much less investor-friendly
The SSY account has sure restrictions that make it much less investor-friendly. The funds saved within the account can solely be used for training and marriage bills. Moreover, the whole corpus stays.
4) Sukanya Samriddhi account Lock-in interval
Sukanya Samriddhi Yojana has a protracted lock-in interval. The maturity interval of SSY is 21 years from the account opening. The funds are locked in till the lady reaches the age of 18, with solely 50% out there for greater training.
5) Sukanya Samriddhi account: Deposits can solely be made for the primary 15 years
One other peculiar rule is that deposits can solely be made for the primary 15 years, regardless of the account’s 21-year tenure.
6) Sukanya Samriddhi account withdrawal and maturity guidelines
After a woman reaches 18 years of age, guardians can withdraw cash from the account as much as 50% of the stability in a monetary yr. In keeping with the rules set by the Division of Posts, withdrawals might be achieved in a single transaction or in installments, with a most of 1 withdrawal per yr with as much as a restrict of 5 years.
As per Gupta, to handle these limitations, it is strongly recommended to have a mixture of fairness and Sukanya investments.
He additional stated that the allocation can fluctuate primarily based on danger urge for food, with aggressive buyers allocating 70-80% to fairness and 20-30% to Sukanya, balanced buyers allocating 50-60% to fairness and 40-50% to Sukanya, and conservative buyers allocating round 30% to fairness and 70% to Sukanya
“SIP is a clever possibility for greater returns. Moreover, investing in shares for the long term is sensible,” stated Vinit Khandare.
Nonetheless, there isn’t any doubt that SSY is the best investing scheme for women. It is a financial savings technique designed particularly for Indian feminine children. Deposits might be made on a month-to-month or yearly foundation. In keeping with the Sukanya Samriddhi Account (Modification) Guidelines, 2018, the minimal quantity to open an SSY account is ₹250. The utmost you possibly can spend money on a yr is ₹1.5 lakh.
Disclaimer: The views and proposals made above are these of particular person analysts, and never of Mint. We advise buyers to examine with licensed consultants earlier than taking any funding choices.