Merits & Demerits of Sukanya Samriddhi Account Yojana
Merits of Sukanya Samriddhi Account Yojana :
- Higher rate of Interest at 8.5%, plus since the scheme is run by Government, it is a safe investment.
- Tax benefit in terms of EEE exemption. i.e. Deposit in the scheme, Interest earned, and Maturity sum all 3 are tax exempt. Deposit in scheme is exempt under Sec 80C.
- Scheme is focused on Girl’s education and marriage expense, so mentally it is easy for investor to relate to the scheme and keep their investment locked for such a long time.
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Demerits of Sukanya Samriddhi Account Yojana:
- Lock in period of 21 years is very high
- Although the present interest rate of 8.5% is quite high, it is not fixed, and maybe decreased in future.
- This scheme does not offer any insurance facility.
- Liquidity is very low and loan facility is also not available.
But it is too early to comment on SSY scheme, as government can bring in more attractive features in future. This might make the scheme more lucrative, as the government has very good intention towards the empowerment of girl child.