It’s important to know Elsa’s meaning to take the decision to make the right investments. Investment as a part of savings is significant, and one of the best ways to do it is to invest in an iniquity-linked savings scheme, also known as ELSS. These are open-ended equity schemes offered by mutual funds in India. ELSS can be invested using lump sum investments or using the SIP (systematic investment plans) method. These investments are widely popular as they give us a tax benefit under section 80c of the income tax act.
About Sukanya Samriddhi
One of the best ELSS funds schemes is the SukanyaSamriddhi Yojana is a small savings deposit started by the Prime Minister of India, Mr. Narendra Modi, on 22 January 2015 Beti Bachao, BetiPadhao’ campaign. It is meant exclusively for the girl child to meet the education and marriage expenses.
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Opening and eligibility
In the SSY, a parent/ a legal guardian of a girl child can open the account after the child’s birth till she comes to 10 years of age. A minimum of 1000 rupees can be deposited into the account. To maintain the account, a minimum deposit of rupees 1000 to a maximum deposit of rupees 1.5 Lakh is to be done during the year. The current rate of interest given by the scheme is 8.1 % and also provides tax benefits. The account can be opened in any post office or authorized branches of commercial banks. The girl’s birth certificate, the address proof of the parents or guardians, and their identity proof are the only requirements. After the account is opened, the tenure is for 15 years. It is also possible to take out 50% of the account’s balance after the girl turns 18 for educational purposes.
The SSY my account is also Transferable to another bank or post office just with a small payment of rupees hundred.
The interest rate is managed and regulated by the government every year and is compounded annually until it finishes 15 years.
But, it only is restricted to an Indian girl child of 0-10 years of age. But investing in SSY gives financial benefits and contributes to the development of the country’s female population.
Public provident fund
Another popular ELSS schemes are the public provident fund launched by the National Savings Institute of the Ministry of Finance in 1968. The full guarantee of the scheme is provided by the Central government. All citizens of India are eligible for this scheme and are promised tax-free returns. The normal duration of the scheme is 15 years. In case of a death, nominations can be made for the returns. A tax benefit of upto 1.5 lakhs is given. The accounts can be opened even in the names of minors. The interest of 7.6% is paid per annum. Such accounts and funds are a great way of saving while getting interested in it, and more investments should be encouraged.