RD vs Sukanya Samriddhi — flexible bank saving or a dedicated girl-child scheme?

A Recurring Deposit is flexible and available at any bank with no restrictions. Sukanya Samriddhi pays a higher, tax-free rate but is government-run and locked specifically to a daughter's future. Compare both on the same monthly contribution.

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RD Calculator vs Sukanya Samriddhi — 15-year comparison

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How each one actually works

Recurring Deposit (RD)

A fixed amount deposited with a bank every month for a fixed tenure, at a fixed interest rate.

PROS

✓Builds a savings habit through a fixed monthly commitment

✓Guaranteed return, same safety profile as FD

✓Lower entry amount than a typical FD

CONS

✕Interest is taxable at your slab rate

✕Premature closure usually reduces the effective rate

✕Return capped at the fixed rate, same as FD

Best for: Building a savings habit for a short-to-medium-term goal when you don't have a lump sum to deposit upfront.

Sukanya Samriddhi Yojana

A government scheme specifically for a girl child, with a higher interest rate than PPF, contributions required for 15 years, and maturity at 21 years from account opening.

PROS

✓Typically the highest rate among government-backed schemes

✓Fully tax-free, same EEE status as PPF

✓Specifically designed for education/marriage goals for a daughter

CONS

✕Only available for a girl child, with an account-opening age limit

✕Longer effective horizon than PPF (matures at 21 years)

✕Contribution required for the first 15 years to keep the account active

Best for: A guaranteed, tax-free fund built specifically for a daughter's education or marriage goal.

Questions

Is Sukanya Samriddhi's higher rate worth the lock-in RD doesn't have?

For its specific goal (a daughter's education or marriage), most families find it is — the rate premium and tax-free status are real, and the lock-in matches a goal that's genuinely 15+ years away anyway.

What if I don't have a daughter — is RD the only option?

Yes, Sukanya Samriddhi is restricted by eligibility (a girl child, opened before she turns 10) — RD, PPF or a SIP are the flexible alternatives for the same savings habit without that restriction.

Where do these numbers actually come from?

The same calculation engine that powers our standalone calculators and Compare Lab — nothing here is a separate or simplified estimate. Every assumption (rate, tenure, tax) is visible and adjustable once you open the comparison with your own numbers.

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