Sukanya Samriddhi Scheme is a government-backed savings scheme in India that is specifically targeted towards the girl child. The scheme was launched by the Indian government in 2015 as part of the “Beti Bachao, Beti Padhao” campaign, which aims to address the issue of the declining child sex ratio in the country. The scheme is aimed at providing a secure future for the girl child and encouraging parents to invest in their daughter’s education and marriage expenses.

The scheme is open to any individual who has a girl child aged below 10 years. The account can be opened in any post office or authorized banks across India. The minimum deposit required to open the account is INR 500 and the maximum deposit is INR 1.5 Lakhs per year. The account can be opened in the name of the girl child, and it will remain operational for 21 years from the date of opening. The account can be transferred from one bank or post office to another.

The interest rate for the scheme is determined by the government and is subject to change from time to time. The interest is compounded annually. The deposit made in the account is eligible for tax benefit under Section 80C of the Income Tax Act, 1961. The maturity proceeds of the scheme are also tax-free.

The scheme also offers a partial withdrawal facility after the completion of 5 years from the date of opening of the account. The withdrawal can be made only for the girl child’s higher education or marriage.

Sukanya Samriddhi Scheme is a long-term investment option that can provide a secure future for the girl child. It is a great way for parents to start saving for their daughter’s education and marriage expenses at an early age. The scheme also has a number of tax benefits, which makes it an attractive investment option. It is also a good option for those who are looking for a low-risk, fixed-return investment.

However, it is important to note that the scheme is only for the girl child and the account can only be opened before the girl child turns 10 years old. The scheme also has a lock-in period of 21 years and there are certain restrictions on withdrawals. It is also important to keep in mind that the interest rate for the scheme is determined by the government and is subject to change from time to time.

Overall, Sukanya Samriddhi Scheme can be a great investment option for parents who want to save for their daughter’s education and marriage expenses. The scheme offers a number of benefits and can provide a secure future for the girl child. It is important to understand the terms and conditions of the scheme and the restrictions on withdrawals before investing in the scheme. Consulting with financial experts can help understand the scheme better and make an informed decision.