The Central Government of India launched the Sukanya Samriddhi Yojana in 2015 to bridge the gap of social acceptance between a girl and a boy child. With the help of the Sukanya Yojana scheme, parents of a girl child can not only finance their daughter’s education and marriage expenditures but also enable her to achieve financial independence in the future.
This scheme, part of the Beti Bachao, Beti Padhao campaign, is a savings account that has to be opened under the name of a girl who is the under the age of 10 years.
Interest rates implied on this savings scheme is set by the Government of India. For the financial year of 2019-20, the interest rate for this scheme is set at 8.50%. However, there are various investment schemes one can opt for, which are easier to avail and also provide substantial returns compared to the Sukanya Samriddhi Yojana.
Several investment schemes provide higher returns than Sukanya Yojana scheme
Several investment options can guarantee you substantial returns, probably higher than the Sukanya Samriddhi Yojana.
These are –
Earlier known as the New Pension Scheme, NPS or National Pension Scheme is a system of availing pension for all Indian residents. Any citizen who belongs to the age group of 18 to 60 years old is eligible to open an NPS account.
This investment scheme is administered by the Pension Fund Regulatory Authority of India. It has an applicable interest rate ranging from 12% to 14% depending on the contributions made to this savings policy. Applicants can avail a partial withdrawal facility of obtaining 25% of your funds, which is calculated on the contributions made by the applicant.
If you are looking forward to investing in a tax saving scheme, PPF or Public Provident Fund is the most popular choice. Similar to Sukanya Yojana scheme, PPF is also a savings scheme that is not only tax-free but also has a prolonged investment tenor of 15 years; thus, there is a substantial impact of annual compound interest in the final stages of the tenor.
Moreover, since the applicable interest is set by the Government of India, this savings scheme provides high security. The minimum annual deposit required to open and maintain your PPF account is Rs.500, while the maximum annual deposit is Rs.1.5 lakh. PPF interest rate for the financial year of 2020 is 7.90%. Opting for a PPF account is considered among the best investment options in India.
- Fixed deposit
Opening a fixed deposit is also another option that investors can opt for while looking for the most beneficial savings policies in India. You can open a fixed deposit account in almost any financial institution or a reputed NBFC, like Bajaj Finance.
Financial institutions offer attractive interest rates on term deposits, which help in generating guaranteed substantial returns. Longer the investment tenor of your fixed deposit, higher will be the offered FD rates by your financial institution. As per the Income Tax Department of India, if the annual interest earnings from all financial deposits is above Rs.40,000 or Rs.50,000 in case of senior citizens, financial institutions are liable to deduct TDS.
If your annual interest income is below the tax threshold, you need to submit Form 15G or Form 15H, depending on your age, to make sure that your financial institution does not deduct any TDS. You can take help of an online fixed deposit calculator to determine your annual income from FD interests.
Considered as the most beneficial investment policy for retired individuals, SCSS or Senior Citizen Saving Scheme is a savings policy offered by post offices and financial institutions.
Any individual above the age of 60 can opt for this investment scheme, which offers substantial interest and has an upper deposit limit of Rs.15 lakh.
- Stock market
In case you are not able to invest a considerable amount in term deposits, stock markets are a valuable option of investment. If you have adept knowledge of the share market, you can invest in several small, medium and large-cap stocks by creating a portfolio. As a stock market investor, your portfolio should be balanced depending on the measure of risk you are willing to take.
All these above investment methods not only provide higher returns compared to the Sukanya Yojana scheme, but they also offer leniency in the eligibility criteria. It is advisable for individuals to learn about each scheme in detail before investing.