Sanjeev Phukan
KF Ace
I want to invest 1 lakh for my 6 year old girl Child . Which shall me a smart investment. FD or Sukanya Samriddhi.???
FD OR Sukanya Samriddhi
- Thread starter Sanjeev Phukan
- Start date
zacobite
KF Mentor
Hands down sukanya samriddhi - only catch is you have to pay for longer term.. And will be good as you will buiild a savings habit.. the girl child will benefit.. Biggest advantage, is fully tax free upto 1.5L p. a even the maturity amount and interest rates keep getting reset.. best for girl child
Skylar
KF Mentor
Here's a quick comparison to help you decide:
For a long-term investment with the tax advantages, Sukanya Samriddhi appears to be a good choice. However, if you require greater flexibility in terms of taking out your money or if you want a shorter investment period, an FD (Fixed Deposit) might be more appropriate.
- in between are saying you'll deposit 1 lac every year? or one time deposit?
| Feature | Sukanya Samriddhi Yojana (SSY) | Fixed Deposit (FD) |
|---|---|---|
| Interest Rate | 8.6% (subject to change) | Lower than SSY |
| Tax Benefits | Yes (Section 80C) | No |
| Maturity Period | 21 years | Flexible |
| Liquidity | Limited withdrawal after 18 years | More flexible, may allow premature withdrawal |
For a long-term investment with the tax advantages, Sukanya Samriddhi appears to be a good choice. However, if you require greater flexibility in terms of taking out your money or if you want a shorter investment period, an FD (Fixed Deposit) might be more appropriate.
- in between are saying you'll deposit 1 lac every year? or one time deposit?
Prince
KF Expert
Hie,
Sukanya samriddhi, is by far best Investment plan for Girl Child, its provides Tax Saving under section 80C, its Exempt, Exempt & Exempt ie. Investment, Interest earned and Maturity amount is Exempt, where in FD Interest is taxable. Only point is Tax Saver FD is locked in 5 Yr whereas its much longer, compare to FD depending upon age of girl child. with Maturity upto 21 years from the account opening or upon her marriage after attaining 18 years. whereas, contributions have to be made for only 15 years
Sukanya samriddhi, is by far best Investment plan for Girl Child, its provides Tax Saving under section 80C, its Exempt, Exempt & Exempt ie. Investment, Interest earned and Maturity amount is Exempt, where in FD Interest is taxable. Only point is Tax Saver FD is locked in 5 Yr whereas its much longer, compare to FD depending upon age of girl child. with Maturity upto 21 years from the account opening or upon her marriage after attaining 18 years. whereas, contributions have to be made for only 15 years
launchcraft
KF Mentor
I want to give you an additional option of investing in GOLD, either in physical form or gold ETF or E-GOLD or gold mutual funds (physical being least preferred because of the risk associated with storage). GOLD is an appreciating asset which has a record increasing daily 
Gold is a steady form of investment, especially for the long term and combats any inflation forces. It also offers a high degree of liquidity and can be useful to cash in on for a child’s expense needs in the future.
You can also invest in Gold as it has been a traditional investment choice for girls in India and this investment is considered a safe haven asset and has a long history of preserving wealth.
Some points you can consider :
Some points to consider as why not to invest in Sukanya Samriddhi Yojana (SSY) :
Gold is a steady form of investment, especially for the long term and combats any inflation forces. It also offers a high degree of liquidity and can be useful to cash in on for a child’s expense needs in the future.
You can also invest in Gold as it has been a traditional investment choice for girls in India and this investment is considered a safe haven asset and has a long history of preserving wealth.
Some points you can consider :
- Non-depreciating nature makes gold an excellent hedge against inflation.
- Digital gold is more liquid; ETF or mutual fund units can be sold on the stock exchange.
- Offers high liquidity and can be tapped for a child's future expenses.
- Acts as a reliable asset to cash in on when needed, ensuring financial stability.
Some points to consider as why not to invest in Sukanya Samriddhi Yojana (SSY) :
- SSY interest rate is changeable on a quarterly basis. This may not be enough to combat the high inflation associated with goals like education and marriage expenses. It doesn't provide a return that beats inflation when compared to mutual funds.
- Considering the long tenure of the SSY (21 years), it becomes clear that the best way to generate inflation-beating returns in the long term is through equity investments.
- The SSY account has certain restrictions that make it less investor-friendly. The funds saved in the account can only be used for education and marriage expenses. Additionally, the entire corpus remains.
- Sukanya Samriddhi Yojana has a long lock-in period. The maturity period of SSY is 21 years from the account opening. The funds are locked in until the girl reaches the age of 18, with only 50% available for higher education.
- Another peculiar rule is that deposits can only be made for the first 15 years, despite the account's 21-year tenure.
Sanjeev Phukan
KF Ace
Every year
Skylar
KF Mentor
Prince
KF Expert
You done need to visit any branch now a days many banks offer this faciulity over the net banking and mobile banking application also, such as ICICI and BOB. wherein at BOB, one can have Sukaniya Yojana, KVP, NPS, PPF etc.
Aadi Yogi
KF Ace
You Have To Go For FD..
Rajeev Kumar K
KF Rookie
Hi, Good Evening
One unique Feature of Sukanya Samriddhi is that it is backed by Government.
It increases the discipline to pay for long term and earn good compounding interest. No premature closure is a good policy.
Have you seen any person losing money due to closure of Post Office?
Banks have Rs. 5 Lakh insurance on Deposit per person. At a given point 5 Lakhs would not have value for either higher education or marriage in medium and long term.
Similar threads
