GIRL CHILD WEALTH VS TAXABLE FD | 2026 EDITION
Required to calculate post-tax FD returns.
Tax Warning
In the New Regime, FD interest is added to your income and taxed. SSY is 100% Tax-Free.
SSY Maturity (Tax-Free)
Regular FD (Post-Tax)
Under the New Tax Regime for FY 2025-26, taxpayers face a unique dilemma. While the new regime offers lower slabs and a high rebate (up to ₹12 Lakh income), it removes almost all investment-based deductions under Section 80C. However, the Sukanya Samriddhi Yojana (SSY) remains a "Golden Exception." While you cannot claim the ₹1.5 Lakh investment deduction in the New Regime, the interest earned and maturity amount remain 100% Tax-Free.
Compare this to a standard bank Fixed Deposit. Banks may offer interest rates between 6.5% and 7.5% in 2026. However, this interest is added to your total income and taxed at your marginal slab rate (15%, 20%, or 30%). For an individual in the 30% slab, a 7% FD actually yields only 4.9% post-tax. The Utility 365 SSY Master highlights this "Yield Gap," showing how the 8.2% tax-free compounding of SSY creates a far larger corpus over 21 years compared to any traditional taxable instrument.
No. Under Section 10(11A) of the Income Tax Act, the interest and maturity proceeds of SSY are exempt from tax. This applies to both the Old and New Tax Regimes. Only the investment deduction (80C) is restricted in the New Regime.
In the New Regime (FY 2025-26), once your total income (including FD interest) crosses ₹12 Lakh, you enter the taxable slabs. The bank will deduct 10% TDS, and you must pay the remaining tax as per your slab (e.g., an additional 5% or 10%) during filing.