Sukanya Samriddhi Yojana is a long term investing instrument with double benefits – better returns for girls’ future and tax-saving benefits for her parents.
I am going to compare SSY with Recurring Deposits (RDs) in a tabular form. This will give you more clarity that why SSY is better than RD. Reason of choosing RD in comparison with SSY is because most people in India prefer RDs or FDs over other methods
How Sukanya Samriddhi Yojana is better than Recurring Deposits?
Parameters |
Sukanya Samriddhi Yojana |
Recurring Deposits |
| Eligibility | A girl child below 10 years in age | Any person (for minor by parents) |
| Where to Open | Post offices and authorized banks | Post Offices and Banks |
| Number of Accounts | One account per girl child | No Limit |
| Purpose | For girl child’s higher education and marriage | For short term goals like an annual vacation, child’s hostel fees or any upcoming event. |
| Nature | Long-Term Debt Scheme | Short-Term Debt Scheme |
| Minimum Investment | Rs. 250 per year | Rs.100 per month |
| Maximum Investment | Rs.1.50 lakh per year | No limit |
| Penalty for default in paying the contribution | Rs.50 per year | Rs.1.50 to Rs.2 for every Rs.100 per month |
| Minimum Tenure | Fixed Tenure of 21 years. | 6 months |
| Maximum Tenure | 10 years | |
| Interest Rate | 8.4% p.a. | 7.6% p.a. for 1 to 5 years RD. |
| Interest Calculation | Compounded Yearly | Compounded Quarterly |
| Tax Benefits on Deposits | Exempted u/s 80C of Income Tax | Not Deductible |
| Tax Benefits on Interest | Tax-Free | Taxable.
If the account belongs to a minor then parents can claim a deduction of Rs.1,500 from the total interest u/s 10(32). |
| Tax Benefits on Maturity Amount | Tax-Free | Fully Taxable with no exemption. |
| Loans | No loan can be taken on the SSA balance | Up to 90% of the available balance |
| TDS Applicability | No TDS is to be deducted from the Interest Income. | TDS is to be deducted from the Interest Income. |
| Premature Withdrawal | One time when the girl child turns 18.
50% amount can be withdrawn. |
1% penalty |
Final Words
You can easily see the benefits of Sukanya Samriddhi Yojana over Recurring deposits. If you want to save money for your daughter’s future but can’t invest in risk-oriented assets than Sukanya Samriddhi Yojana is the best option for you to save money.
29 thoughts on “Sukanya Samriddhi Account vs Recurring Deposits”
Sir, it is a flexible payment scheme ?
Example I deposit 10000 this next 20000 then next year 5000,
Is it possible in sukanya samruddhi yougana?
yes , you can its your choice. but limitation is of minimum 250/- and maximum 1.5 lac per year.
Sir, after depositing Rs.1000/- for year, whether i can deposit Rs500/- in a month
their is a catch , maximum amount would be 1.5 lac per year in total you can deposit.
Is PAN a compulsory to open SSA?
Yes/no
no , its not.
one address proof and one identity document is needed.
else birth certificate of child etc.
if I deposit 1000 per month till 14 years then how much money can my Doughter received after 21 years?
maturity amount will be Rs.6.15 lakhs after 21 years at the current interest rate of 9.20% p.a.
Sir kindly help us to know whether date of birth certificate issued by recognised public school is valid for opening kanya samraddhi acctt.
Yes, please refer: http://simpleinterest.in/birth-certificate-of-girl-child-sukanya-samriddhi-account/
Please provide a Article by comparing
1. SSY (Not cover any insurance- only Money)
2. Bank RD (Not cover any insurance- only Money)
3. PPF ((Not cover any insurance – only Money)
4. LIC (Any Child plan/Jeenan Anand)(covers Double insurance + Money+Loan)
For Monthly Payment of Rs:1000. for 15 Years.
Thanks & Regards,
Murthy
Hi Boss,
Compare to SSY ,RD, PPF – LIC’s Jeevan Anand(815) is Good for All 🙂
Insurance + Money + Loan Monthly Fixed Payments.
Please give a table/ Article Explaining all facilities for these.
Thanks & Regards,
Murthy
Thank you so much Sir. I have one question for you. What are the documents required to get benefit of tax deduction in Sukanya Samriddi Account???
Simply retain the cash deposition slip with you.
kya ye scheme sabhi state ke liye hai.
Yes Pravin, this scheme is available throughout India.
whether the deposit is to be made upto 14 years of age.
whether the maturity is at the age of 21 of the child, irrespective of age of initial opening of account
Deposits are to be made for 14 years irrespective of the age of the girl child. Please refer: http://simpleinterest.in/sukanya-samriddhi-account-withdrawal-rules/
sukanya samriddhi ac toollfree no ?
There is no toll free number at present.
Pls provide SSA form as we have visited our nearest Post office last week but some how they don’t received the same.
Here you go: http://simpleinterest.in/sukanya-samriddhi-account-opening-form/
sir ji sukanya samriddhi yojna me agar mai 1000/- per year 14 years tak deposit karu to uska 21 years ke bad kitna amount milega please bataiye
Rs.52500 after 21 years
The scheme is good for future of girls, But the government also add there money as per for a month the parents who deposit -500 per month government also deposit -500 per month on the child account and what about there medeclaim it also should be necessary this is the good benefit for child and beti bachoo
The best plan.
pls give bank list where i open the account for my girl child.
Currently, only post offices are opening accounts. None of the Banks have not received any notification about this scheme from the Govt.