Sukanya Samriddhi Account Vs. Fixed Deposit/Term Deposit Scheme for Minor Child

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The Sukanya Samriddhi Yojana launched by the Government of India for minor girls is a significant step that supports the ‘Beti Bachao, Beti Padhao’ movement. However, term deposits for children have been around for many years wherein a parent can open a fixed deposit account for a girl or boy child. The account remains under the control of the parent till the child turns 21 or when the FD matures.

Many banks offer term deposit schemes. Some of them also provide additional insurance to the child, along with returns post maturity. Let us compare both these schemes based on their features:


A parent or legal guardian can open an SSY account in the name of the girl child before she turns 10. Also, only one account can be opened for a girl child, and only the first two girls of the family are eligible for this government-backed scheme.

Term deposit schemes for minors are applicable for any minor child from 1 to 15 years of age. The deposited amount, along with interest can be withdrawn once the child reaches 18 years of age. Some banks even allow minors to open a fixed deposit account provided that their account will remain under the observation of a parent or legal guardian until the child turns 18.

Investment method

An SSY account can be opened with an amount of Rs. 250 which can be extended up to 1, 50,000. After that, the parent needs to deposit an amount in multiples of 100 each month until she reaches the age of 14.

A one-time investment is needed for fixed deposits, and you do not have to pay anything after that. The minimum amount required to open an FD account is different in different banks, but most probably it will be Rs. 25,000 or 20,000.


As per the Sukanya Samriddhi Yojana, you can withdraw partial deposit to cover the higher education expenses of the girl when she turns 18. Also, you can withdraw the complete amount when the girl reaches 21 or when she gets married, whichever is earlier.

According to the term deposit scheme, the deposited amount will attract interest, and the accumulated amount will be provided to you at the end of the FD tenor. Therefore, you can easily secure your child’s future by investing in them.

These are some points of comparison between fixed deposits and SSY scheme. A good thing about SSY is that the interest-earning is non-taxable. You can claim deductions up to Rs. 1, 50,000 by investing in a tax-saving FD.

Better Investment Alternative

SSY scheme is good only for those who are looking for long term investments for their girl child. If you are looking for an investment option that is profitable in the short-term as well as in the long-term, then you can invest in high-yielding company FDs such as Bajaj Finance FD. Bajaj Finance FD provides an interest rate of 8.60% on an FD for child, which is also slightly better than the interest rate of SSY scheme. Here are some of the other features of Bajaj Finance FD, which makes it an attractive investment option to secure both the present and future of your child:

Periodic interest payouts

You can choose an interest payout frequency as per your financial requirements when you choose fixed deposit schemes from Bajaj Finance. Therefore, monthly, quarterly, yearly, and bi-annual interest payouts can be received and you can use this amount to cover the regular or occasional educational expenses of your child.


Upon maturity, you can renew your FD and earn an additional 0.10% interest for this. Therefore, you can also plan a long term investment for your child by using these FD schemes.

Multi-deposit facility

Bajaj Finance allows you to invest in multiple FDs at a time with different amounts and FD tenors and that too with a single cheque. As each FD matures after a certain period, you can use that amount for higher education or other expenses of your child.

Thus, Bajaj Finance FD proves to be a wise investment alternative for both girl and boy child. Moreover, the account opening process is seamless as compared to SSY or bank FDs as you can use the online procedure. With Experia- you online fixed deposit account, you can manage and track multiple FD accounts.

Open a fixed deposit account for your child today to ensure his/her bright future!