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.

By reviewing the Sukanya Samriddhi Yojana interest rate from 2015 to 2025, parents can better judge how the scheme has evolved with changing economic policies, making long-term planning easier.

In this article, we are going to discuss,

Table of content

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

• Sukanya Samriddhi 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.) What Happens If You Stop Paying Into Sukanya Samriddhi?

5.) Who Should Choose SIP Instead of Sukanya Samriddhi?

6.) Final Verdict

7.) Why the Sukanya Samriddhi Yojana is a good plan?

8.) Why Sukanya Samriddhi Yojana is not good?

9.) Additional guidance for choosing the right mix

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.

Many families also check the Sukanya Samriddhi Yojana chart to understand annual contribution timelines and maturity projections before committing to long-term savings.

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.
• The strong start of the scheme and the attractive Sukanya Samriddhi Yojana 2015 interest rate helped parents build confidence in a dedicated savings platform for their daughters.
• 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.
• Clear rules around the Sukanya Samriddhi Yojana age limit allow parents to begin disciplined savings from early childhood, strengthening the long-term compounding benefit.
• 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.

This flexibility ensures parents can maintain the account even if they relocate, preserving continuity in the Sukanya Samriddhi Yojana scheme details without interruptions.

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

Parents often review Sukanya Samriddhi Yojana plan details, Sukanya Samriddhi Yojana limit rules, Sukanya Samriddhi Yojana maximum amount, and SSY scheme details to understand how much they can invest yearly and how the Sukanya Samriddhi Yojana returns accumulate over time.

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.

The defined Sukanya Samriddhi Yojana maximum amount helps parents plan annual budgets more efficiently while balancing other financial goals.

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

The updated Sukanya Samriddhi Yojana today interest rate continues to offer stable returns, making it a dependable option even when market-linked investments fluctuate.

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.

Families often refer to the Sukanya Samriddhi Yojana chart to understand how tax savings combine with compound interest to maximize long-term wealth creation.

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.
• This passbook structure closely follows the standard Sukanya Samriddhi Yojana scheme details, ensuring transparency in yearly deposits and interest.
• Sukanya Samriddhi Yojana’s account can also be transferred to any other cities inside India later.
• The ease of transfer also aligns with common queries around Sukanya Samriddhi Yojana account portability, making the scheme suitable for families who relocate frequently.

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

These basic KYC requirements match the typical process followed under the Sukanya Samriddhi Yojana application guidelines, ensuring valid identity and age verification.

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.

This clearly defined Sukanya Samriddhi Yojana maturity period helps parents time major milestones such as higher education or marriage.

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.

These rules around the Sukanya Samriddhi Yojana withdrawal conditions provide clarity for parents planning expenses at different stages of a girl’s life.

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.

This partial withdrawal facility is one of the highlights often noted in the Sukanya Samriddhi Yojana chart, showcasing the scheme’s flexibility for education planning.

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

This falls under the Sukanya Samriddhi Yojana closure rules, ensuring the deposited funds are returned to the family without unnecessary complications.

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.

Parents often evaluate options through tools like the Sukanya Samriddhi Yojana vs SIP calculator, making it easier to compare guaranteed returns vs market-driven 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.
• Because PPF is a popular benchmark, many parents compare it with Sukanya Samriddhi Yojana interest rates before making a final decision.

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.
• These benefits highlight why some families evaluate both PPF vs Sukanya Samriddhi Yojana when deciding on a safe long-term investment for their child.

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.

Parents often use calculators that compare the Sukanya Samriddhi Yojana interest rate with PPF interest projections to understand which aligns better with long-term goals.

Sukanya Samriddhi Yojana – Returns calculation

Families planning long-term goals often look for clarity on how Sukanya Samriddhi Yojana builds wealth steadily over the years.

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

Understanding PPF returns helps parents compare stable government-backed options before choosing the most suitable long-term plan.

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.

Comparing SSY with SIP allows investors to balance safety with higher-growth opportunities depending on their financial comfort zone.

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.

• SIP features make it suitable for disciplined investors who prefer gradual wealth creation instead of large lump-sum commitments.
• 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

These benefits make SIP ideal for long horizons where market fluctuations support gradual portfolio growth.

Comparison of Sukanya Samriddhi Yojana with Mutual Fund SIP.

A clear comparison helps families choose the right mix of safety-based and high-growth investment options for a child’s future.

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

Reviewing long-term SIP performance helps investors understand how equity-based growth can support future financial milestones.

* 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. What Happens If You Stop Paying into Sukanya Samriddhi?

Many parents worry about what happens if they miss payments or are unable to continue investing in the Sukanya Samriddhi Yojana.

The rules are actually simpler than most people think, and understanding them helps you avoid penalties and protect the long-term value of your daughter’s investment.

✔ Your SSY Account Becomes “Defaulted” — But Not Closed

If you do not deposit the minimum ₹250 in a financial year, the account becomes “defaulted.”

However, it does NOT get closed, and the balance continues to earn interest at the regular SSY rate, not a penalty rate.

This is one of the biggest misconceptions among parents—your money stays safe and continues to grow.

✔ You Can Reactivate the Account Anytime

To revive the account, you simply need to pay:

• The pending minimum deposits for the years you missed, and
• A ₹50 penalty per skipped year

Once paid, the account becomes fully active again.

✔ Interest Continues Even If You Don’t Pay

Even when you stop paying completely, the amount already invested keeps earning interest until maturity.

The growth does not stop, and the girl child still receives the final maturity amount.

✔ After 14 Years, Deposits Stop Anyway

One relief is that even in a normal, active SSY account:

• You only need to deposit for 14 years
• The account continues earning interest till 21 years

So even if you stop paying after 14 years, the account functions normally without penalties.

✔ No Money Can Be Withdrawn Until Rules Permit

Stopping payments does not change the restrictions on withdrawal:

• Partial withdrawal allowed only after 18 years for education
• Full withdrawal only at 21 years OR at the time of marriage (after 18)

✔ If You Stop Because of Financial Difficulty

Parents facing temporary financial struggles often panic and close long-term investments.
But SSY is designed to be forgiving:

• No need to close the account
• No loss of previously earned interest
• You can resume anytime

✔ When Does It Make Sense to Stop Paying on Purpose?

In some rare cases, stopping payments may actually be logical:

• If you want to redirect money into SIP for higher long-term growth
• If your financial goals have changed
• If your risk appetite increases and you want a diversified portfolio

Stopping SSY payments does not harm the already accumulated balance—it simply limits future contributions.

✔ Your Daughter Still Gets the Maturity Value

Whether you continue paying or not, the money stays locked for her benefit, and she receives:

• Principal amount
• Accumulated interest
• Full tax benefits at maturity

This protects the child’s financial security regardless of the parent’s financial ups and downs.

5. Who Should Choose SIP Instead of Sukanya Samriddhi?

While Sukanya Samriddhi is ideal for parents who prefer guaranteed returns, there is a growing group of investors for whom SIP (Systematic Investment Plan) is a far more suitable option.

SIP becomes the better choice when long-term wealth creation and inflation-adjusted returns are the main goals.

It is especially useful for parents who do not mind market fluctuations and want higher growth over 15–20 years.

You should consider SIP over Sukanya Samriddhi if you fall into any of these categories:

✔ Parents Who Want Higher Long-Term Returns

• SIP in equity mutual funds historically delivers 10–14% average long-term returns, which is significantly higher than fixed schemes.
• For goals like higher education, where expenses rise faster than inflation, equity returns help you stay ahead.

✔ Those Who Understand Market Ups and Downs

• SIP works best for investors who can remain calm during market volatility.
• If you understand that short-term dips often lead to higher long-term gains, SIP fits you better.

✔ Investors with a Longer Investment Horizon

• Equity SIPs perform strongly when held for 10 years or more.
• Parents who start investing soon after a child’s birth can compound wealth faster with SIP.

✔ Families Comfortable with Moderate to High Risk

• If you seek returns beyond traditional fixed schemes and can tolerate market-linked fluctuations, SIP may be the better choice.

✔ Parents Who Want Flexible Contributions

• SIPs allow investments starting from ₹500 per month.
• There is no upper limit, making it ideal for growing your investment gradually.

✔ Those Who Want Liquidity

• Unlike SSY, SIPs do not lock money for 21 years.
• You can pause, increase, decrease, or redeem anytime.

✔ Investors Seeking Inflation-Beating Growth

• Education and marriage costs rise at 8–10% per year.
• SIP returns are better suited to match these rising expenses.

✔ Parents Interested in Diversified Wealth Creation

• Through SIPs, you can invest in large-cap, mid-cap, flexi-cap, ELSS, or hybrid funds.
• This builds a more balanced financial foundation for long-term goals.

6. Final Verdict

A balanced view enables parents to match their investment decision with both their financial goals and emotional comfort.

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.

7.Why the Sukanya Samriddhi Yojana is a good plan?

For families who prioritise security, SSY remains one of the most reliable long-term choices backed by government assurance.

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.

8. Why Sukanya Samriddhi Yojana is not good?

For those aiming to beat long-term inflation, growth-oriented investments often provide better value than purely fixed-return plans.

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.

9. Additional guidance for choosing the right mix

Using simple projection tools helps parents visualise future corpus values and compare growth potential effectively.

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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