Sukanya Samriddhi Account vs Recurring Deposits
Sukanya Samriddhi khata vs Recurring Deposits

Sukanya Samriddhi Account vs Recurring Deposits

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?


Sukanya Samriddhi Yojana

Recurring Deposits

EligibilityA girl child below 10 years in ageAny person (for minor by parents)
Where to OpenPost offices and authorized banksPost Offices and Banks
Number of AccountsOne account per girl childNo Limit
PurposeFor girl child’s higher education and marriageFor short term goals like an annual vacation, child’s hostel fees or any upcoming event.
NatureLong-Term Debt SchemeShort-Term Debt Scheme
Minimum InvestmentRs. 250 per yearRs.100 per month
Maximum InvestmentRs.1.50 lakh per yearNo limit
Penalty for default in paying the contributionRs.50 per yearRs.1.50 to Rs.2 for every Rs.100 per month
Minimum TenureFixed Tenure of 21 years.6 months
Maximum Tenure10 years
Interest Rate8.4% p.a.7.6% p.a. for 1 to 5 years RD.
Interest CalculationCompounded YearlyCompounded Quarterly
Tax Benefits on DepositsExempted u/s 80C of Income TaxNot Deductible
Tax Benefits on InterestTax-FreeTaxable.

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 AmountTax-FreeFully Taxable with no exemption.
LoansNo loan can be taken on the SSA balanceUp to 90% of the available balance
TDS ApplicabilityNo TDS is to be deducted from the Interest Income.TDS is to be deducted from the Interest Income.
Premature WithdrawalOne 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50%  amount can be withdrawn.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”

  1. 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?

      1. no , its not.
        one address proof and one identity document is needed.
        else birth certificate of child etc.

  2. if I deposit 1000 per month till 14 years then how much money can my Doughter received after 21 years?

  3. Sir kindly help us to know whether date of birth certificate issued by recognised public school is valid for opening kanya samraddhi acctt.

  4. 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,

  5. 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,

  6. 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

  7. Pls provide SSA form as we have visited our nearest Post office last week but some how they don’t received the same.

  8. 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

  9. sanjaykumar .g. patil

    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

    1. Currently, only post offices are opening accounts. None of the Banks have not received any notification about this scheme from the Govt.

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