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Sukanya Samriddhi Yojana (SSY)

Sukanya Samriddhi Yojana (SSY): Eligibility, Interest Rate, Benefits

Sukanya Samriddhi Yojana is one of government-backed small savings schemes that can help parents secure the future of their girl child. This scheme can be easily opened in post offices and designated private or public banks in the form of a savings account in the name of the baby girl. Like other government savings schemes, the interest rates for Sukanya Samriddhi Yojana are declared quarterly.

Here’s the eligibility criteria for opening a Sukanya Samriddhi Yojana Account:

  • Only parents or legal guardians of the girl child can open a Sukanya Samriddhi account in the name of the girl.
  • The girl child should be less than 10 years at the time of account opening. The account can be operational till the girl reaches the age of 21 years.
  • The initial investment can start from Rs. 250 and a maximum of Rs. 1,50,000 annually with further deposits in the multiples of Rs. 100.
  • A single girl child cannot have multiple Sukanya Samridhhi accounts.
  • Only two Sukanya Samriddhi Yojana accounts are allowed per family i.e., one for each girl child.

Sukanya Samriddhi Yojana (SSY) vs Fixed Deposit (FD)

For parents looking to secure the future of their child, investing in a Sukanya Samriddhi Yojana can be a great option. However, investing in a Fixed Deposit also has its own merits. Let’s see the key differences between a Fixed Deposit and Sukanya Samriddhi Yojana scheme.

  • Sukanya Samriddhi Scheme is a long-term investment scheme while a fixed deposit can be used as a short-term as well as long-term investment scheme. FD with short tenor can help you safeguard your investment against inflation whereas FD with long tenor can help you accumulate corpus for future needs.
  • Any Indian national can open an FD, irrespective of their age or gender. Sukanya Samriddhi Account can only be opened for a girl child below the age of 10 years. Also, an FD can be opened in the name of the parent with the child as their nominee or beneficiary.
  • Fixed Deposits can be applied online. No online mode of operation/account opening is possible for Sukanya Samriddhi Account.
  • An individual can have more than one FD account in their name but in the case of Sukanya Yojana only one account can be opened for a girl child, with a cap of two accounts per family.
  • Fixed deposits require Rs. 100 of deposit amount per month to start with whereas Sukanya Yojana requires a minimum of Rs. 250.

Though Sukanya Samriddhi Yojana is a government-sponsored scheme, it has certain limitations in terms of the investment terms, interest rate, ease of investing, and more. In the face of these limitations, parents can lookout for other suitable investment options like Bajaj Finance Fixed Deposit for their child.

Why investing in a Bajaj Finance Fixed Deposit is a better option?

Investing in a Bajaj Finance Fixed Deposit can be a smart choice that not only enables individuals to gain assured returns, but also offers flexible investment terms. Also, if there are more than two girl children in a family, then an alternative like a high-paying company FD is much needed.

Here’s a look at the benefits of investing in a Bajaj Finance FD for securing the future of your child:

  • High Interest Rate: Bajaj Finance offers 7.25%  interest rate on Child FD which is slightly higher as compared to Sukanya Samriddhi account. Also, Bajaj Finance FD offers an additional 0.10% interest upon renewal of your FD.
  • Interest Rate Fluctuations: The rate of interest is subject to periodic changes in the case of Sukanya Samriddhi, whereas a company FD like Bajaj Finance FD will offer attractive interest rates irrespective of RBI movements or market fluctuations.
  • Eligibility: Any Indian Citizen can open Bajaj Finance FD, irrespective of their age or gender, Sukanya Samriddhi Account can only be opened for the girl children below the age of 10 years.
  • Ease of Investing: Bajaj Finance FD offers features such as debit card for FD investment, multi-deposit facility, auto- renewal feature, and much more.
  • Lock-in period: The lock-in period for Sukanya account is at least 21 years or at the time of marriage of the account holder, whichever is earlier. While the tenor of Bajaj Finance FD can vary from 1 to 5 years, with an option for premature withdrawal of funds.
  • Laddering: Bajaj Finance FD offers flexibility to choose tenor ranging from 12 months to 36 months. This helps you ladder your investments such that you have multiple FDs with successive maturity timelines, with at least one FD dedicated towards each financial goal of your girl child. SSY account doesn’t offer this benefit.
  • Periodic Interest Payouts: You can avail periodic interest payouts with Bajaj Finance Child FD. The frequency of interest payouts can be set as monthly, quarterly, or half-yearly. SSY account doesn’t offer periodic interest payouts.
  • Liquidity:: In case of Sukanya Samriddhi account, you can withdraw 50% of the amount accumulated only after the girl reaches the age of 18. Premature withdrawals of whole amount can be possible in the case of Bajaj Finance FD without any restrictions on lock-in period. Also, you can avail loan against Bajaj Finance FD online.
  • Online Account Management: Bajaj Finance FD can be opened and managed online whereas Sukanya Samriddhi account does not offer any such type of facility.
  • Online Interest Rate Calculator: Bajaj Finance also offers an online FD calculator so you can know the exact maturity amount. It also lets you decide the right principal amount to reach a desired maturity amount. SSY account doesn’t offer such facility.

The table below highlights the key differences between Bajaj Finance Child FD and SSY Scheme:

Parameters Bajaj Finance Fixed Deposit Sukanya Samriddhi Yojana (SSY)
Tenor 1-5 Years 21 Years
Interest Rate 8.35%* 7.60%
Gender/Age Restriction Nil Only for girl child below 10 years of age
Availability Online PS Banks (Offline)
Multiple Accounts Yes No
Withdrawal Allowed after 3-month lock-in period Withdrawal up to 50% allowed, only when girl child reaches the age of 18
Loan against deposit Yes No
Online Account Management Yes No
Flexible Tenor Yes No
Laddering Yes No
Auto- renewal Yes NA
Periodic Interest Payout Yes No

Thus, Bajaj Finance Child FD has more benefits than the Sukanya Samriddhi Yojana, which makes it a better investment option than the latter. Start investing in a Bajaj Finance Fixed Deposit online right away, to make your savings grow.

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