Index Fund Corner
Sponsored
| Scheme Name | 1-Year Return | Invest Now | Fund Category | Expense Ratio |
|---|---|---|---|---|
| Axis Nifty 50 Index Fund | +32.80% | Invest Now | Equity: Large Cap | 0.12% |
| Axis Nifty 100 Index Fund | +38.59% | Invest Now | Equity: Large Cap | 0.21% |
| Axis Nifty Next 50 Index Fund | +71.83% | Invest Now | Equity: Large Cap | 0.25% |
| Axis Nifty 500 Index Fund | — | Invest Now | Equity: Flexi Cap | 0.10% |
| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest Now | Equity: Mid Cap | 0.28% |
What are the benefits for your daughter?
Here’s a list of all the essential benefits of opening a Sukanya Samriddhi Yojana Account:
Low Initial Deposit Requirement
You can start an SSY account with as little as ₹250, a decrease from the previous minimum deposit of ₹1,000 (prior to 5th July 2018). The maximum deposit limit is ₹1.5 lakh per year. It’s mandatory to make deposits for 15 years, after which your account could be marked as “under default.” You can reactivate the account with a penalty of ₹50 for each year of missed deposits, within the 15-year window.
Supports Your Girl Child’s Education
Parents or guardians of a girl child under 10 years old can open an SSY account for up to two daughters. A significant advantage is that after the girl turns 18, you can withdraw 50% of the balance to meet educational expenses. You’ll need to provide proof of admission to use this benefit.
Triple Tax Benefits
This scheme offers substantial tax advantages:
-
- Contributions of up to ₹1.5 lakh are deductible under Section 80C of the Income Tax Act.
- The interest earned is tax-free, compounded annually.
- The maturity amount, including interest, is also tax-free.
High-Interest Rates
The SSY offers attractive interest rates. For accounts opened between October 1, 2018, and December 31, 2018, the interest rate was 8.6%, one of the highest among small savings schemes.
No Further Deposits After 15 Years
You only need to deposit for the first 15 years. After this, no additional contributions are required, but your account will continue to accrue interest until the maturity date, which is 21 years from the account opening.
Premature Withdrawal in Special Cases
Premature withdrawals are allowed under specific circumstances after maintaining the account for five years. These circumstances include financial hardship due to medical reasons or the death of a guardian, or even if the beneficiary is getting married after reaching the legal age of marriage (18 years). The intention to marry must be notified at least one month before or up to three months after the marriage.
How the SSY scheme works
Users can open a SSY deposit account if their daughter is a resident Indian girl under 10 years old. Up to two SSY accounts can be opened under the scheme parent at an authorised bank or post office branch.
In order to start an account, users need to fill out an application form, attach supporting documents, and pay the first deposit. Users will then receive a passbook to commemorate the opening of the account.
The investment value for the SSY account ranges between ₹250 and ₹1.5 lakh per year. The account matures after 21 years, or when your daughter marries after age 18. Users can make partial withdrawals for their daughter’s higher education.
Also Read : Income tax dept extends deadline for filing belated and revised ITR for AY 2024-25 to Jan 15
