Sukanya Samriddhi Yojana Or Fixed Deposit – Which One Is Better?

Sukanya Samriddhi Yojana Or Fixed Deposit - Which One Is Better?
Sukanya Samriddhi Yojana Or Fixed Deposit – Which One Is Better?
Launched in the year of 2015 by
the Government of India, Sukanya Samriddhi Yojana is an initiative to encourage
Indian parents to save money for their girl child. A Sukanya Smariddhi account
online can thus be opened to meet expenses of higher education or marriage of
their daughter.
Alternatively, fixed deposits are
investment schemes that do not come with such restriction based on age, gender,
and the likes. Thus, individuals looking to grow their corpus with the surety
of high returns can opt for risk-free investment options like a fixed deposit.
Before moving on to compare the two options, let’s take a brief look at them.

Smariddhi Yojana (SSY)

Parents of a girl child can start
investing in a Sukanya Samriddhi account online before the girl attains the age
of 10 years. Applicants are allowed to deposit a minimum of Rs.250 and a
maximum of Rs. 1.5 lakh yearly in a Sukanya Samriddhi account. The applicable
interest rates are decided quarterly for the scheme.

Fixed Deposits

Fixed deposits are risk-free
investments that help in corpus growth as per the tenor chosen, thus helping an
individual meet diverse financial goals. FD rates today have increased up to
8.10% for regular applicants. Senior citizens can avail up to 8.35% rate of
interest on Fixed Deposit
with financial institutions like Bajaj Finance.
While both the schemes offer high
rates of returns, they address different financial requirements. Further, their
accompanying features and benefits also vary. Thus, below given is a
comparative study of the two that will help you decide on the right investment
option between the two.

Fixed Deposits
And Sukanya Samriddhi Yojana – A Comparison

● End-Use Of The Maturity Amount – The maturity amount
under the SSY is dedicated to providing financial freedom to the girl child. It
is thus suitable only when you seek to meet financial goals related to your
daughter’s marriage, education, etc. As for FD, it is an investment plan that
comes with no restriction to end-use. The maturity amount can thus be utilised
to meet diverse financial goals. It is, therefore, ideal to choose a financial
institution that offers the highest FD rates today.
● Interest Rate Applicability – Interest rate offered for
Sukanya Samriddhi account online are declared quarterly. Returns on the
investment will thus vary as per the applicable rate.
However, fixed deposit interest
rates offered by financial institutions remain constant for the tenor opted,
thus ensuring assured returns.
● Eligibility – Unlike the Sukanya Samriddhi scheme,
fixed deposits can be availed by any individual irrespective of his/her age or
● Lock-In Period – Funds accumulated in Sukanya Samriddhi
account online can’t be availed until and unless the girl child attains the age
of 18 or gets married before it.
Fixed deposits, however, have a
smaller lock-in period.
● Premature Withdrawal – Fixed deposits provide consumers
with the option to withdraw funds prematurely. It thus offers the flexibility
of withdrawal during emergencies. However, loss of interest and inclusion of
premature withdrawal fee are the reasons why premature withdrawal of fixed
deposit is not financially advisable.
Nevertheless, in the case of SSY,
withdrawal before the girl child attains the age of 18 years is strictly not
● Option For Periodic Interest Payout – Since Sukanya
Samriddhi account online dedicatedly intends for educational and wedding
expenses of a girl child, there is no facility of regular payout.
With non-cumulative type of fixed
deposits, investors can, however, opt for periodic interest payouts.
● Ease Of Investment And Other Facilities – Investors can
easily invest in FD through cash, cheque, or by using a debit card. Moreover,
the option of auto-renewal provided by a few financial institutions helps
candidates financially as they don’t have to wonder what happens if they don’t
renew or withdraw their fixed deposits.
When opening a Sukanya Samriddhi
account online
, while you have multiple deposit options, they are not as
diverse as in the case of FDs. The scheme also does not provide an auto-renewal
Based on these factors,
individuals can decide on their suitable investment option between the two. The
decision regarding which option is better depends on a case-to-case basis and
the investor’s customised requirements.


Gaurav Khanna is an experienced
financial advisor, digital marketer, and writer who is well known for his
ability to predict market trends. Check out his blog at HighlightStory

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