Higher Interest Than Sukanya Samriddhi Yojana: These Banks Offer Up to 9.1% Returns
FD vs Sukanya Samriddhi Yojana: Which Offers Better Returns?
With the RBI reducing the repo rate to 6.25%, fixed deposit (FD) rates may decline. However, some small finance banks still offer interest rates higher than Sukanya Samriddhi Yojana (SSY), which currently provides 8.2% returns over 15 years.
Several banks are offering FD interest rates between 8.5% and 9.5%, making them an attractive investment alternative.
Banks Offering More Than 8.2% Interest on FD
If you are looking for higher returns than SSY, check out these banks:
✅ Unity Small Finance Bank – 9.5% (1001 days)
✅ Utkarsh Small Finance Bank – 9.1% (2-3 years)
✅ Suryoday Small Finance Bank – 9.1% (5 years)
✅ Shivalik Small Finance Bank – 9.05% (12-18 months)
✅ North East Small Finance Bank – 9.0% (18-36 months)
Comparison: SSY vs FD
| Scheme | Interest Rate | Investment Term | Tax Benefits | Liquidity |
|---|---|---|---|---|
| Sukanya Samriddhi Yojana (SSY) | 8.2% | 15 years | Tax-free under Section 80C | Limited withdrawals |
| Small Finance Bank FD | Up to 9.5% | 1-5 years | Taxable | Flexible withdrawal options |
Is FD a Better Investment Than SSY?
✔ Higher Returns: Small finance banks currently offer better returns than SSY.
✔ Shorter Lock-in Period: Unlike SSY’s 15-year tenure, FDs have shorter durations ranging from 1 to 5 years.
✔ Liquidity Advantage: You can withdraw FD before maturity (with penalties), whereas SSY has stricter withdrawal rules.
✘ Taxable Income: Unlike SSY, FD interest is taxable, which reduces net returns.
Final Verdict: SSY or FD?
- If you want long-term, tax-free savings for your daughter, SSY is a great option.
- If you prefer higher returns with flexibility, FD in small finance banks is a better choice.
📢 Tip: Consider a mix of SSY for long-term savings and FD for short-term high returns to maximize your earnings!
4o
