Should You Invest In Sukanya Samriddhi Yojana?
Every parent wants to give the best of everything to their daughter. However, there’s no better gift you can give to them, than investing in a saving plan. Along with the ‘Beti Bachao, Beti Padhao’ campaign, the government has introduced various saving schemes to meet the marriage and educational expenses of a girl child. Sukanya Samriddhi Yojana or Sukanya Samriddhi Scheme is one of the most popular investment options targeted at the parents of the girl children. Under the Sukanya Samriddhi Scheme, small affordable deposits can be made in the bank accounts of the girl child.
Key Features of Sukanya Samriddhi Scheme :
- The account can be opened in the name of a girl child below the age of ten years.
- Only one account is allowed per child. A maximum of two accounts are allowed per family.
- The minimum investment required is Rs. 250/- per financial year, and the maximum permissible amount is Rs. 1,50,000/-.
- The rate of interest is notified by the government from time to time.
- Interest is compounded on a yearly compounded basis and credited to the account. The interest rate was 8.5% for Apr-Jun 2019.
- One withdrawal (only up to 50% of the balance at the credit of the preceding financial year) is allowed to account holder on attaining the age of 18 years to meet education expenses.
- The account is transferable anywhere in India from one post office/bank to another.
- The account will mature upon the completion of 21 years of operation or on the marriage of the account holder, whichever is earlier.
The overall picture of the government’s Sukanya Samriddhi Scheme is pretty good at first glance. However, it has certain limitations in terms of lock-in period and withdrawal policies. Also, in case you have more than two girl children or a son, Sukanya Samriddhi Yojana will not meet your investment needs.
Better investment avenue
To overcome these limitations, you can consider other fixed-income investments, such as fixed deposits. Bajaj Finance Fixed Deposit can be a potential candidate if you are planning to consider other alternative investment options. It provides flexible investment terms along with guaranteed high returns. Here are some reasons why Bajaj Finance FD proves to be a better investment avenue for your children:
- FD in India with Bajaj Finance can be opened by any Indian, irrespective of their age or gender. For a minor child, FD can be opened with the parent as a beneficiary.
- The tenor of Bajaj Finance FD ranges from 1 to 5 years, with an option for premature withdrawal. Also, you can avail of a loan against FD at a marginal interest rate, while still earning returns on your investment.
- The multi-deposit facility from Bajaj Finance FD allows you to ladder your investment across multiple FDs spread across different timeframes. This ensures liquidity at all times, along with a stream of continuous returns.
- You can opt for periodic interest payouts to meet your regular expenses. This feature is very helpful in covering the ongoing educational expenses of your children.
- Investing in Bajaj Finance FD is very easy with an online application procedure. You can check the final maturity amount using an FD Calculator India before you make a decision to invest.
These deposits are rated by reputed third-party credit rating agencies like CRISIL and ICRA. This means your investment is safe and will fetch you guaranteed returns upon maturity.
Apart from these benefits, the fact that the Bajaj Finance Fixed Deposit has a total deposit book of 16000+ crores, with about 2,50,000 customers, serves as a strong validation.
Rohan is a passionate financial blogger and financial adviser. He has been serving society as a financial adviser for past 6 years. He has amazing solution for every finance related query. He shares his financial tips and tricks on Onlinestory.in