Know The Key Differences Between Fixed Deposit and Sukanya Samriddhi Yojana

By | April 21, 2020

Pradhan Mantri Sukanya Samriddhi Yojana(SSY) is a small savings scheme launched by the Government for the empowerment of the girl child. Although it allows parents of a girl child to invest for their education right from their birth, it has distinct differences from a fixed deposit such as that offered by Bajaj Finance. Let us take a look:

  1. Eligibility:
    There are no age or gender limits to open a fixed deposit whereas only those with a girl child below 10 years of age can open an SSY account in their name with the child as the nominee or beneficiary.
  2. Interest rate:
    Pradhan Mantri Sukanya Samriddhi Yojana interest rates are subject to changes every quarter as declared by the government. Fixed deposit from Bajaj Finance offers the highest FD rates of up to 8.05% with an additional 0.10% increase upon renewal, independent of market fluctuations.
  3. Maturity period:
    The investment tenure of Company FDs is flexible and ranges anywhere between 12 months to 5 years, depending on whether you want to save for the short term or long term. However, Pradhan Mantri Sukanya Samriddhi Yojana account only matures after 21 years from the time it is opened or when the girl gets married, whichever happens early.
  4. Multiple accounts:
    A family can open a maximum of two SSY accounts for two girls, one for each. On the other hand, using the multi-deposit facility, an individual can +Bajaj Finance FD allows an individual to open multiple fixed deposits in his or her name to stagger investments as per the financial goals which fall in different timelines.
  5. Minimum deposit:
    A fixed deposit can be opened with a minimum of ₹100 per month whereas you would be required to deposit ₹ 250 every month to open an SSY account.
  6. Liquidity:
    It is only when the girl is 18 years of age that 50% of the amount deposited in Pradhan Mantri Sukanya Samriddhi Yojana account can be withdrawn. However, Company FDs not only offer high interest FD rates, but also allows you to withdraw the whole amount prematurely with a bare minimum lock-in period of 1-3 months. 
  7. Online account opening:
    There is no facility to open an SSY account online. It can only be opened by visiting a registered post office or a public or private bank enlisted to open the account. However, you can easily open a Bajaj Finance FD online and manage it conveniently using Experia-your online fixed deposit account.
  8. Maturity amount calculator:
    You can utilize the online FD calculator to determine the amount on maturity to decide the principal amount you need to invest even before you make the actual investment. This helps you to reach your desired goals easily. No such facility is available for the SSY account.  

Bajaj Finance FD with its highest FD rates, a facility for multiple FDs, auto-renewal and loan against FD along with all the other advantages as mentioned above is the right choice for investment. It also comes with high credibility backed by CRISIL’s FAAA/stable rating and ICRA’s MAAA/stable rating.

To plan for specific life goals for your daughter, you can start investing in FD with small monthly instalments of Rs. 5000 under the Systematic Deposit Plan. You can make 6-48 deposits during a tenor of 1-5 years, and earn interest on these deposits as per the rate prevailing on the date of the deposit. This way you won’t miss out on the prevailing high rates. 

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