Nowadays, people often want to save some part of their earnings and invest it in a place where their money is completely safe and also gets good returns. This is the reason why many people start investing keeping in mind the future of their daughters. In such a situation, the biggest question in the minds of parents is whether Fixed Deposit (FD) or Sukanya Samriddhi Yojana (SSY) is better for their daughter’s future.
If you also want to invest for your daughter’s future – which includes big expenses like education and marriage – then it is important to choose the right investment option. Both the options have their own benefits. Let us see which scheme can be more beneficial.
What are the benefits of Fixed Deposit (FD)?
Fixed Deposit (FD) is available for both boys and girls. Many banks offer special FD schemes for children, which offer interest rates of 8% or more. The investment period can range from 7 days to 10 years or more. The main feature of FD is its flexibility; If needed, many banks provide the facility of premature withdrawal of money. However, the interest earned on most FDs is taxable and unlike the Sukanya scheme, it does not get tax exemption.
What makes Sukanya Samriddhi Yojana special?
Sukanya Samriddhi Yojana is a government savings scheme launched especially for daughters. Investment in this scheme is completely safe, because it is guaranteed by the Central Government. Currently, this scheme is offering an annual compounded interest rate of 8.2% for the quarter April-June 2026.
Under this scheme, you can open an account in the name of a daughter below 10 years of age. The annual deposit amount can range from a minimum of ₹250 to a maximum of ₹1.5 lakh. The investment has to be made for a period of 15 years, while the scheme matures in 21 years. The biggest advantage of this scheme is tax exemption on the amount invested, interest received and the amount received on maturity.
If you deposit ₹1.5 lakh every year in your daughter’s account, you will have invested a total of ₹22.5 lakh in 15 years. Based on current interest rates, around ₹71.82 lakh can be accumulated in the account by the end of the 21-year tenure.
Which scheme is better for investment?
If you want to create a long-term fund for your daughter along with tax benefits, then Sukanya Samriddhi Yojana is a better option as it offers guaranteed returns, higher interest rates and tax exemptions. However, if you want more flexibility in your investments, fixed deposits would be a better option.