New Delhi, May 19 -- You are blessed with a baby girl and want to begin investing in her name. For many parents, the first option that comes to mind is the Sukanya Samriddhi Yojana (SSY).

Backed by the government and offering fixed returns with tax benefits, the scheme has become one of the most popular long-term investment options for daughters.

However, while the returns may look attractive, there are important restrictions around lock-in and liquidity that parents often overlook before investing.

The current interest rate on SSY is 8.2%. The government reviews and resets it every quarter in line with other small savings schemes and the prevailing interest rate cycle.

You can invest a minimum of Rs.250 and a maximum of Rs.1.5 lakh i...