Revealed: Is it good to invest in Sukanya Samriddhi Yojana for your daughter?

So, you are planning to protect your girl child’s future. It is good to invest now in girl children for their better future. Is Sukanya Samriddhi account beneficial?

We analyse in detail about Sukanya Samriddhi Scheme and compare it with other schemes. Let us see who wins.

Looking at the SSY interest rate history, parents can better understand the returns of this scheme over time.
In this article, we are going to discuss,

1.)Sukanya Samriddhi Yojana
2.)Is there any other better scheme?

• Sukanya Smariddhi Yojana-returns calculator
• PPF Return Calculator

3.)Sukanya Samriddhi Vs Systematic Investment Plans.

• Comparison of Sukanya Samriddhi Yojana with Mutual Fund SIP
• Equity Mutual Funds SIP Returns Calculator

4.)Final Verdict

1.What is Sukanya Samriddhi Yojana Scheme?

What is the Sukanya Samriddhi scheme? Sukanya Samriddhi Scheme was launched by the Government of India to ensure equal share for girl children and also to save their financial future.

This scheme mainly targeted the parents for the welfare of their female child. The Sukanya Samriddhi scheme is only for girl child to encourages them to build a fund for the future education and marriage of their daughters. The Sukanya Samriddhi Yojana entry age is 0 to 10 years.

The Sukanya Samriddhi Yojana interest rate 2015 was among the highest in its category, making it attractive at launch.

By analyzing the Sukanya Samriddhi Yojana interest rate from 2015 to 2025, parents can evaluate how consistent the returns have been.

Parents researching investment options often refer to the Sukanya Samriddhi Yojana chart for easy comparison.

I. Salient Features of Sukanya Samriddhi Yojana Scheme Details:

• The Sukanya Samriddhi Yojana scheme was established for the prosperity of Girl children. It was launched by The Prime Minister of India, Narendra Modi, in 2015.
• For those who started early, the Sukanya Samriddhi Yojana 2015 interest rate offered excellent compounding benefits.
• What is the Sukanya Samriddhi Yojana age limit? The minimum age for Sukanya Samriddhi Yojana is 0. The Sukanya Samriddhi Yojana’s maturity age is 18 years. The account can be opened only by their parents or legal guardian after the birth of a girl until she turns 10.
• Only one account is allowed per girl child. So, the parents can open two account maximum for each of their daughters.
• The parents or guardians of the girl child who reached the Sukanya Samriddhi yojana age criteria can open the Sukanya Scheme in the post office or any other nationalized bank. The exception is allowed for twins or triplets, which means if the second child is a twin, then all three are eligible to open the account.
• The account can be transferred to anywhere in India.

II. How much and how long do I need to deposit in Sukanya Samriddhi Yojana?

How much amount can be deposited in Sukanya Samriddhi Yojana? What is the minimum amount of the Sukanya Samriddhi Yojana scheme?

Here are the Sukanya Samriddhi Yojana investment amount details.

The minimum investment amount for the Sukanya Samriddhi Yojana is Rs. 250 per year (Rs. 1000 earlier).

Sukanya Samriddhi Yojana maximum amount you can invest is Rs. 1,50,000 per year.

Can I deposit more than 1.5 lakhs in Sukanya Samriddhi Yojana?

However, Sukanya Samriddhi Yojana maximum amount is Rs. 1,50,000 per year.

• There is no limit to transactions, we can make as many transactions as required in a year.
• You can only make the payment through cash, cheque or Demand Draft by visiting the Post office or bank.
• Deposits can be made, until completion of 14 years, from the date of opening of the account.
• After this period, the account will earn only the applicable rate of interest.
• The Sukanya Samriddhi Yojana today interest rate reflects the government’s focus on encouraging savings for girl children

III. What is Sukanya Samriddhi Yojana’s current interest rate?

Interest rate of Sukanya Samriddhi Yojana is 8% (April 1, 2023).
Interest rates were 9.1% when the scheme was introduced and are subject to change every year by the government of India.

IV. What is the tax benefit on Sukanya Samriddhi Yojana?

Sukanya Samriddhi Scheme is completely exempted from Income tax under Sec 80 C after the budget release (2015-2016).
This means any amount deposited up to Rs 1,50,000 under this Sukanya Samriddhi Scheme will be exempt from tax at the time of investment, accrual of interest and pay out of returns.

Sukanya Samriddhi Yojana tax benefit for parents:

Parent or guardian of the child can get Sukanya Samriddhi Yojana tax exemption.

Is Sukanya Samriddhi Yojana tax benefit applicable for both the parents?

No, only one individual can get tax benefit on Sukanya Samriddhi Yojana.

Is there a tax on Sukanya Samriddhi Scheme interest?

Interest earned from Sukanya Samriddhi Scheme will not be taxable.

One reason this scheme remains popular is that the Sukanya Samriddhi Yojana chart clearly outlines its tax-saving advantages across the years.

V. Whom do I need to approach to open Sukanya Samriddhi Yojana account?

• Where can we open a Sukanya Samriddhi account? As per the government notification, Sukanya Samriddhi Account can be opened in any nearby Post office or in any public sector bank.
• The passbook will be provided in the name of the account holder i.e. daughter’s name, along with other details like date of opening, address etc.
• Sukanya Samriddhi Yojana’s account can also be transferred to any other cities inside India later.

VI. What are the documents required for Sukanya Samriddhi account?

To open this Sukanya Samriddhi account the following documents are required,
– Birth certificate of your daughter
– Latest address Proof
– Identity proof
– Recent photograph

VII. What is the maturity period of the Sukanya Samriddhi Yojana?

Sukanya Samriddhi’s account will get matured after 21 years from the date of opening the account.

VIII. Can we withdraw money from the Sukanya Samriddhi account before maturity?

The Sukanya Samriddhi scheme will get matured if the parents arrange for marriage. Sukanya Samriddhi Yojana maturity age for their girl child is 18 years.

IX. Partial Withdrawal from Sukanya Samriddhi Scheme:

That is, one can partially withdraw the amount after the girl reaches 18 years of age for educational purposes, and the remaining can be left in the account for marriage purposes.

X. If the girl child passes away, this account will be closed only by the production of the death certificate.

2. What are the other investment schemes for girl children?

Sukanya Samriddhi Scheme is a risk- free and similar to the Public Provident fund.

On the other hand, mutual fund is another best investment plan for a new born girl child in India.

A few minor differences are explained for more clarification.

Although risk-free, comparing SSY with mutual funds using the Sukanya Samriddhi Yojana vs sip calculator shows the trade-off between safety and long-term growth.

i. What is the Public Provident Fund (PPF)?

• Public Provident Fund is one of the popular long-term investment schemes and was introduced by the Government of India in 1968.
• PPF can be opened by any individuals who are residents of India with any nationalized bank, selected authorized private bank or post office.
• A minimum of Rs. 500 to a maximum of Rs. 1,50,000 can be deposited in one financial year.
• The rate of interest is 7.1% per annum as of April 2023.
• The maturity period is 15 years and premature withdrawals can be taken from the start of the 7th financial year.

ii. What are the benefits of PPF?

• Under the Public Provident Fund, a loan facility is available from the 3rd financial year up to the 6th financial year.
• PPF is completely exempted from tax under Section 80 C to the limit of Rs. 1,50,000.
• This account can be extended for a block of 5 years after the maturity.
• PPF also provides the facility to transfer funds online from our linked Savings Bank account.
• Partial withdrawal can be made on the 7th year from the date of opening the account.

iii. Comparison between Sukanya Samriddhi and Public Provident Fund Schemes.

Sukanya Samriddhi VS PPF which one is better?

Sl.No	Basic Criteria	SUKANYA SAMRIDDHI SCHEME	PUBLIC PROVIDENT FUND SCHEME
1	Who can open the account?	Only for girl children	Any Resident Indian individual
2	Eligibility	0 to 10 years	Any age
3	Where to open the account?	Post office or any nationalized banks	Post office or any nationalized banks
4	Deposit amount	Minimum – Rs. 250 per year Maximum – Rs.1,50,000 per year of each child	Minimum – Rs.500 per year Maximum – Rs.1,50,000 per year in total
5	How many accounts per person?	One account per girl child.	Single account per person
6	Frequency of Deposits	Unlimited transactions	12 times maximum in a financial year
7	Interest rate	8% (April 2023 onwards)	7.1% (April 2023 onwards)
8	Tax benefits on Contribution amount	Exempt under Section 80 C	Exempt under Section 80 C
9	Tax benefits on interest earned	Tax-free	Tax-free
10	Partial Withdrawal	50% when a girl attains 18 years of age	Only 50% of the closing balance at the end of the 4th year prior to the year when the money is being withdrawn or 50% of the closing balance of the previous year, whichever is lower will be the limit, is allowed from the 7th year onwards.
11	Maturity year	21 years from the date of opening or on marriage	15 years
12	Can it be extended?	No	Indefinitely in a block of 5 years after maturity
13	Loan availability	No	Yes

Sukanya Samriddhi interest rate VS PPF interest rate: Which one can give a better return?

Is Sukanya Samriddhi better than PPF? Let us see the return comparison in detail. Let us assume if an individual is investing Rs 1 lac every year, what is the maturity value, he will get.

Sukanya Samriddhi Yojana – Returns calculation

Let us calculate the Sukanya Samriddhi return by using the Sukanya Samriddhi return calculator.

As the returns from PPF is tax free, there is no difference in post-tax return for individual based on his tax bracket.

PPF Returns calculation

Now, let us calculate the return on PPF by using the PPF return Calculator.

From the above chart, we can clearly see that Sukanya Samriddhi Scheme scores better than PPF.

3. Sukanya Samriddhi Vs Systematic Investment Plans.

SIP is the most common investment scheme. It is widely chosen by many investors.

Mutual Fund investment – SIP is very effective when invested in equity. It is best because of its power of compounding and Rupee cost averaging.

1) Features of Mutual Fund SIP.

• A Systematic Investment Plan is offered by a Mutual fund to investors investing a fixed sum regularly.
• It is one of the long-term investments and, all our investments are pooled for investing in stocks.

2) SIP also has the benefits of the power of compounding, and Rupee Cost Averaging

Comparison of Sukanya Samriddhi Yojana with Mutual Fund SIP.

Here is the Sukanya Samriddhi yojana vs mutual fund calculator – Download here!

	SSY – Sukanya Samriddhi Yojana	SIP – Systematic Investment Plan
Structure of the scheme	Under SSY, the maximum amount to deposit by the investor is Rs.1,50,000. Only for a girl children.	SIP allows investors to invest a small amount on regular basis rather than investing a huge amount in one go. The minimum investment for SIP is Rs. 500 and there is no maximum limit.
Investment objective	Long term investment of 21 years and mainly for daughter’s education and marriage.	Long term investment suitable for long term goals such as marriage or retirement planning.
Tax benefit	This scheme is completely exempted from Income tax under Sec 80C. Both the contribution and the interest is tax free.	SIP in ELSS i.e., Equity Linked Saving Scheme will be eligible for tax reduction under Section 80C. There is a long term capital gain tax of 10% flat.
Level of Risk	Risk-free	High risk but Calculated risk.
Returns	Returns are guaranteed with tax-free interest.	Returns are expected to be on the higher side for long term investments.
Interest rate	8.2%	Approximately 12%
Post tax return Workings between SSY and SIP	8.2% returns and this scheme is completely tax free.	Return after tax is approx .10.8% for individuals falling under all the tax brackets

As the returns from SIP is taxed at a flat 10% rate, there is no difference in post-tax return for the individual based on his tax bracket.

Equity Mutual Funds SIP Returns calculation

* 12% is the assumed rate of return for long-term equity mutual fund investments.

The above chart clearly explains that the returns from the equity mutual fund SIP are far better than the returns from Sukanya Samriddhi.

People who prefer risk- free investment can opt Sukanya Samriddhi Scheme or PPF, and who those are willing to take calculated risks with better inflation beating returns will opt for Systematic Investment Plan.

4. Final Verdict

After comparing all the investment plans, now you may ask,

What are the other investment schemes for girl children?

Is Sukanya Samriddhi Yojana good or bad?

Sukanya Samriddhi Yojana is both a good and bad investment plan.

Why the Sukanya Samriddhi Yojana is a good plan?

If you are looking for a risk-free investment plan, then Sukanya Samriddhi is good compared to PPF.

For “safe and secure” returns, the answer is undoubtedly Sukanya Samriddhi and the second choice is Public Provident Fund because all your returns are guaranteed by the government. Also, both schemes are completely exempted from tax.

For parents who prioritize stability, the best investment plan for girl child in India could be Sukanya Samriddhi Yojana when combined with PPF.

Why Sukanya Samriddhi Yojana is not good?

Sukanya Samriddhi Yojana is a long-term investment plan. So, compared to mutual funds it does not give you an inflation-beating return. So, in the long-term, Sukanya Samriddhi is not a good investment plan for your girl child.

For “higher returns”, SIP is a good choice. If you are comfortable taking risks, then SIP is a good choice. Also, it makes sense to invest your long-term money in equities.

But the better suggestion would be choosing the investment on a combo basis…investing a certain amount in the SIP Mutual fund and a certain amount in Sukanya Samriddhi Yojana.

For higher inflation-adjusted returns, consider using a Sukanya Samriddhi Yojana vs mutual fund sip calculator to evaluate real-time projections.

This can be decided based on your risk-taking appetite and required asset allocation.

If you want to visualise the long-term value of your investment, the Sukanya Samriddhi Yojana calculator can help project maturity amounts.

Still unsure? Compare side-by-side using a sip vs Sukanya Samriddhi calculator to make a well-informed choice.

If you have any comments or questions, write them in the comment box below.

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