Funding For Girls’ Higher Education Needs
Higher education is incredibly important for young girls, as it can change their lives and open many doors. These are not just intellectual doors, giving them new insights and ways of looking at the world, but doors to business opportunities, employment options and more. The problem is that higher education can be very expensive, so many girls are not able to go since they are not able to afford it. This can be an insurmountable hurdle to even the most intelligent young women, and planning in advance is the best way to get around it. As a parent, you have one terrific option that you should be aware of.
That option is known as a sukanya samriddhi account. This is open to any parent who has a young female child, and legal guardians are also allowed to use it. Not only can the account eventually be used for higher education, but it can be used for marriage. Either way, these accounts help parents to be ready for these future costs so that their children are not held back in any way. At minimum, once you get the account set up, you can put in Rs 1000 every single year. The maximum amount that you’re allowed to put in on a yearly basis is Rs 1,50,000.
So, how does the sukanya samriddhi scheme work? It’s very simple. Once you put the money in, you’re locked into the account for 21 years. The only way to get the money before the 21 years are up is if the girl gets married, and you are then allowed to access it on the day of her marriage. The other exception is when the girl turns 18; on that day, you can take out half of the balance to help pay for her education.
This may feel constraining, but it’s really not. It can actually be quite helpful, as it forces you to save money and put it aside for the future. You want to do this anyway, and the account ensures that you do. Plus, you earn an interest rate of 9.1 percent while the money is in the account. That is the current rate, though it is possible for the government to alter it. Still, the governmental interest rates are way higher than what banks and other institutions offer, so this is one of the best ways to grow your capital over time.