Your daughter dreams of studying abroad after five years, while her younger brother wants to start with piano classes next year. You need savings that work for both — a flexible plan for small, regular expenses, and a long-term plan to fund her higher education.
In 2025, saving for children is different from how it was a decade ago. Education costs are rising faster than ever, new saving options keep appearing, and parents are learning to manage everyday spending alongside future goals.
It’s about figuring out your child’s financial needs, planning for today and the future, and saving regularly.
Here’s how these two options fit into a modern parent’s financial strategy.
What Makes a Minor Savings Account a Flexible Option for Parents?
A Minor Savings Account is a regular bank account opened in a child’s name and managed by a parent until the child turns 18.
- Flexible Deposits: Deposit any amount at any time; there’s usually no fixed annual limit
- Minimum Balance: Many banks, like Ujjivan Bank’s minor savings account, don’t levy penalty on non-maintenance of minimum average balance (MAB), making it easy to manage
- Applicable for All Children: Can be opened for both boys and girls, unlike SSY which is only for girls.
- Regular Interest Credit: Interest is credited quarterly or monthly (depending on the bank)
- Smooth Transition at 18: Once your child turns 18, the account can be converted into a regular savings account, letting them take charge of their finances
This makes it one of the best minor savings account options for families who value flexibility and regular access.
Why Do Parents Choose Sukanya Samriddhi Yojana for Long-Term Goals?
The Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme exclusively for the girl child.
Key features include:
- High Returns: Offers government-declared interest rates, reviewed periodically.
- Annual Interest Credit: Interest is credited once a year, making growth predictable.
- Flexible Deposits: You can deposit ₹250 – ₹1.5 lakh per financial year. Any extra is returned, keeping the account structured
- Deposit Duration: Contributions can continue for 15 years from account opening.
- Partial Withdrawals for Education: Up to 50% withdrawal allowed once the girl turns 18 or passes the 10th standard, with proper documentation
- Maturity Period: The account matures after 21 years or upon marriage after age 18
Backed by the Government of India, SSY is risk-free. Contributions qualify for tax deductions under Section 80C, and both interest and maturity amounts are completely tax-free, making it a reliable long-term saving option for your daughter.
Minor Savings Account vs Sukanya Samriddhi Yojana: 2025 Comparison
To help you decide, here’s a quick look at how a minor savings account vs Sukanya Samridhi differ in key aspects like eligibility, returns, and flexibility:
| Feature | Minor Savings Account | Sukanya Samriddhi Yojana (SSY) |
| Eligibility | Any child below 18 | Girl child below 10 |
| Interest Rate (2025) | Up to 7.25%* (bank-dependent) | The interest rates change annually based on the repo rates and other factors |
| Deposit Flexibility | No limit on amount or frequency | ₹250 – ₹1.5 lakh per financial year |
| Liquidity / Withdrawals | High funds can be withdrawn anytime | Limited – partial withdrawal allowed after 18 for education |
| Tax Benefits | Limited | Full, Section 80C deduction; maturity tax-free |
| Security | Depends on the bank | Government-backed and guaranteed |
Minor Savings Account vs Sukanya Samriddhi: Which Fits Your Goals?
Think of it like this: the money in a minor savings account is your go-to fund for everyday moments — school fees, weekend classes, or unexpected expenses.
You can deposit small amounts as often as you like, and withdraw whenever needed. It gives you peace of mind knowing your child’s day-to-day needs are covered without any hassle.
On the other hand, the Sukanya Samriddhi Yojana is for the bigger milestones — higher education, college abroad, or even her wedding. The account grows steadily with guaranteed, tax-free returns and encourages consistent saving over the long term.
Partial withdrawals are allowed after she turns 18 or passes the 10th standard, making it accessible when she really needs it.
Rather than seeing it as a choice between the two, minor savings account vs Sukanya Samriddhi, it is about how each account serves a different purpose. By using both, you handle daily expenses today while securing her financial future tomorrow.
Final Thoughts
When the goal is simply saving for your child, the strategy should cover both small and big needs. A minor savings account takes care of routine deposits and provides instant access, while the Sukanya Samriddhi Yojana grows your savings steadily over the long term.
Together, they create a realistic, balanced plan: small, everyday expenses are managed easily, and long-term goals are steadily funded. This combination helps you pick the best minor savings account for immediate needs while letting SSY work for bigger milestones.
