PPF Vs Sukanya Samriddhi Yojana: Since the birth of the girl child, it is the endeavor of every parent to choose the best investment option for her future. The government also keeps on coming up with many schemes to encourage the education and marriage of the girl child. Here we are telling you about two government schemes, in which investment can get better returns. These schemes are – Public Provident Fund and Sukanya Samriddhi Yojana. Both the schemes are run by the government. Along with this, both the schemes are away from market risks.
Many people can invest in both the schemes for the better future of the daughter. But, at times investors want to invest in only one scheme. In such a situation, it becomes confusing as to which is the better scheme out of the two. So let us tell you about the difference between Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY)-
Public Provident Fund (PPF)
You can invest in Public Provident Fund (PPF) for 15 years. The lock in period of this scheme is 5 years. By investing in this scheme, you get the benefit of exemption under section 80C of Income Tax. In this scheme, in a financial year, you will get an opportunity to invest a minimum of Rs 500 and a maximum of Rs 1.5 lakh. In PPF, you get an annual interest rate of around 7.1 percent. If you suddenly need money, you can withdraw up to 50 percent of the total deposit after 5 years. You can invest in this scheme for both son and daughter.
Sukanya Samriddhi Yojana (SSY)
Sukanya Samriddhi Yojana has been launched by the government to secure the future of the girl child. In this scheme, the investor gets 7.6 percent interest rate annually. In this scheme, it is mandatory for you to deposit at least Rs 250 within a year. At the same time, the maximum you can invest under this scheme is Rs 1.5 lakh. Under this scheme, the account can be opened from the age of 0 to 10 years of the girl child.
After the girl child turns 18, she can make partial withdrawals from the account for studies. After the girl child completes 21 years, she can withdraw the entire money from the account. In this scheme, you can invest till the girl child turns 15 and the interest on the deposit amount will be given to you for 21 years by the government. If you want to invest in any one of the two schemes, then you will get more returns in Sukanya Samriddhi Yojana (SSY).
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