Sukanya Samriddhi Account Yojana is a good scheme but the features are more or less similar to PPF. Let’s have a look at the this scheme in a point by point manner.
- Rate of Interest is more, at 8.5% compared to 8.0% of PPF. But the Interest rate is not fixed, and may be decreased in subsequent years.
- Lock in period is 21 years as compared to 15 years of PPF
- To create a Corpus for Girl child’s marriage and education 8.6% Rate of interest is not very lucrative as seeing the increasing rate of inflation.
- It is advisable to invest major portion of savings in equity focused Mutual Fund and small portion towards debt scheme like Sukanya Samriddhi Yojana.
- However this scheme is much better than the traditional child plans, and child policies ( non equity oriented) from Insurance companies
- I will recommend this scheme to those who want to play safe and don’t want to take risk.
- Also this scheme is good for those who have exhausted their PPF limit but want to invest more so they can invest in Sukanya Samriddhi Yojana. Although they won’t be getting any tax benefit but they can avail of the higher rate of interest.