Fixed deposit and Sukanya Samriddhi Yojana (SSY) are two popular investment tools. But if you want to know which is better for you, you need to make a detailed comparison between Sukanya Samriddhi Yojana vs FD. 


The Sukanya Samriddhi Yojana is a government scheme launched for the welfare of a girl child in the family. It encourages parents or guardians of the girl child to make small savings for her higher education and marriage expenses. 


This scheme, launched under the ‘Beti Bachao, Beti Padhao’ initiative, enables parents/legal guardians of a girl child to open an account in her name. This account can be opened until she turns 10. 


Like fixed deposits, this savings scheme offers guaranteed returns to all depositors. However, the two investment tools have multiple dissimilarities. Read on to dive deeper into understanding Sukanya Samriddhi Yojana vs FD.

Difference Between Sukanya Samriddhi Yojana and Fixed Deposits

The below table points out the key differences between Sukanya Samriddhi Yojana and fixed deposit.


Fixed Deposit

Sukanya Samriddhi Yojana

Interest Rate

Interest rates depend on the tenor you choose


Eligible Age

18 years (Parent/guardians can open FD accounts for minors)


Minimum Deposit

Differs from bank to bank


Maximum Deposit

No upper limit

₹1.5 Lakhs p.a.

Tax Exemption

Annual deduction of up to ₹1.5 Lakhs under Section 80C

Annual deduction of up to ₹1.5 Lakhs under Section 80C


Differs from bank to bank

When the girl reaches 21 years or upon marriage

Premature Withdrawal

Premature withdrawal is allowed; however, banks and NBFCs charge a penalty

After five years; however, under certain conditions only

Nomination Facility


Not available

Loan Facility


Not available

Extension of Tenor

Not available, however, you can always renew your FD

Not possible

Disclaimer: Rates mentioned above are subject to change as per the policies of the issuers

In-depth Analysis of Sukanya Samriddhi Yojana Vs FD

To better understand the instrument, consider the following pointers.

1. Interest Rate

The interest rate for Sukanya Samriddhi Yojana is decided by the Central Government every quarter. Currently, the interest rate for SSY is 8%, and the FD interest rate is decided by the bank or NBFC and is revised regularly.

2. Eligibility

Since SSY is for a girl child, parents or legal guardians can open a bank account for the baby girl right after her birth. This scheme can only be availed till the girl reaches the age of 10 years.


Whereas you need to be 18 or more to book a fixed deposit scheme, parents can also open FD accounts in their children’s names. Your children can avail of its benefit after turning 18.

3. Minimum and Maximum Deposit

With Sukanya Samriddhi Yojana, you can start your savings account with a minimum of ₹250, whereas the maximum investment amount is ₹1.5 Lakhs annually. 


For fixed deposits, the minimum deposit amount differs from bank to bank. At Bajaj Markets, you can open an FD account with an amount as low as ₹1,000.

3. Tenor

The lock-in period for SSY is until the girl reaches the age of 21 years or when the girl gets married (whichever is earlier). Additionally, this scheme also enables you to make partial withdrawals for the girl’s higher education once she turns 18.


In the case of fixed deposits, every bank and NBFC has a different tenor. At Bajaj Markets, you can opt for the right lock-in period based on your financial goals from a flexible tenor ranging from 7 days to 10 years.

4. Premature Withdrawal

SSY enables you to make premature withdrawals, however, only under special conditions. One such special situation could be the untimely death of the account holder. 


On the other hand, fixed deposits also allow premature withdrawals, but you may have to pay a nominal penalty.

5. Tax Benefits

Both SSY and FDs are tax-saving instruments. However, you need to opt for the 5-year tax-saver FD to avail of income tax exemption.

6. Tenor Extension

With a Sukanya Samriddhi Yojana account, the account matures once the girl child reaches 21 years of age or get married. Extensions are not allowed beyond the 21-year mark. 


However, fixed deposits do not allow extension. The entire principal amount and the interest earned are withdrawn at the time of maturity. However, you can always opt for automatic FD renewal if you wish to stay invested.


The SSY vs FD comparison reveals that both have their own merits and demerits. Though Sukanya Samriddhi Yojana offers a higher interest rate, it is limited to girls. 


However, a fixed deposit is more than just a savings tool with a flexible tenor. Moreover, it offers additional benefits like a loan against FD and a nomination facility.


At Bajaj Markets, you can choose from a range of fixed deposit schemes that can assist you in compounding your money. To make an informed investment decision, you need to assess the returns with different financial entities.  


For this purpose, you can use the Bajaj Markets online FD calculator, which takes in your inputs and determines your maturity amount in an instant. 


With the highest safety ratings, you can be assured that we have built a secure environment for your money to grow for you. So, visit our ‘Fixed Deposit’ page and start now!

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The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial investment advice or endorsement of any sort. 

The information including interest rates with regard to fixed deposit, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any investment or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products. 

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FAQs on SSY vs FD

Is Sukanya Samriddhi Yojana better than Fixed Deposit?

Both Sukanya Samriddhi Yojana and fixed deposits have their own set of pros and cons. Whether you should opt for SSY or FD depends on your individual preferences, circumstances, and needs.

Is FD taxable?

The interest earned on regular FD is taxable if it exceeds ₹50,000 annually.

Is SSY tax-free?

You can avail income tax exemption of up to ₹1.5 Lakhs on interest earned through the Sukanya Samriddhi Yojana account in a financial year.

What is the minimum deposit amount for Sukanya Samriddhi Yojana vs fixed deposit?

The minimum deposit amount for Sukanya Samriddhi Yojana is ₹250, and the minimum amount for FD varies from bank to bank.

What is the FD rate for a girl child?

The banks do not offer differential interest rates for a girl child. However, some banks offer FDs specially designed for the girl child.


Is Sukanya Samriddhi Scheme the best investment for your girl child?

The Sukanya Samriddhi Yojana is one the best small savings schemes available for the girl. However, when making an investment for your child’s future expenses, you can diversify your portfolio by investing in FDs, children’s mutual funds, etc.

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