Lesson 3 of 3 · 7 min
NSC, Sukanya Samriddhi and monthly income
NSC, Sukanya Samriddhi and the monthly income account give three different answers to the only question that matters: when do you get to touch the money?
The post office counter carries a whole shelf of these, and they are not variations on one another. NSC runs for five years and hands back everything at the end.
Sukanya Samriddhi is opened for a girl below ten, takes deposits for fifteen years and matures when she is twenty-one. The monthly income account pays interest into your hands every month and returns the principal at the end of its term. Same backing, same quarterly rate reset, completely different shapes.
| Scheme | Rate for Q1 FY 2026-27 | Term | When the money reaches you |
|---|---|---|---|
| PPF | 7.1% | 15 financial years | At maturity; a capped partial withdrawal from year 7 |
| NSC | 7.7% | 5 years | All of it at the end — interest accrues yearly inside the certificate |
| Sukanya Samriddhi | 8.2% | Deposits for 15 years, matures at 21 | At maturity, with limited earlier withdrawal for higher education or marriage |
| Post Office Monthly Income Account | 7.4% | 5 years | Interest every month; the principal comes back at the end |
Sukanya Samriddhi, in detail
- Age of the girl when the account is opened
- Below 10
- Accounts per family
- 2
- Deposit range in a year
- ₹250 to ₹1,50,000
- Maturity
- 21 years from opening
Opened by a parent or guardian. Once she is ten the door has closed.
A third is allowed for twins or triplets.
Deposits run for 15 years from opening; the account itself carries on earning until it matures.
So an account opened for a two-year-old matures when she is twenty-three years past the day it started — the maturity date follows the account, not her birthday.
Myth
“Government savings schemes are risk-free — you cannot lose money in one.”
Mostly false
One risk really is absent: the Government of India owes the money and does not default on its own small savings, so there is no credit risk. Two others stay put. Inflation can outrun a 7.1% rate, in which case the purchasing power of what comes back has shrunk even though the rupee count went up. And the rate itself is re-notified every quarter, so the number on the poster today is not the number that runs for fifteen years. 'No credit risk' is the honest phrase. 'Risk-free' is not.
Sort it
1 / 5
Reachable soon, or locked away? Swipe each one.
A PPF account in its first six years
Just for you
Think of a specific sum you are saving right now. Write down the month you would genuinely need it. Then look back at the table — which of these could still hand it to you by then?
This stays in your browser and is never sent anywhere — not to us, not to anyone. It disappears when you leave the page.
Check yourself
1 / 3
Kabir asks
When does NSC pay out its interest?
Done reading?
Saved in this browser — and finishes the course.