If you are planning an investment for good returns, which will benefit in the future and also get tax exemption, then PPF is better for that. If you want to secure your daughter’s future then you can start Sukanya Samriddhi.
Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY) both are good investment avenues. Guaranteed returns are also available in both. But there are some fundamental differences between both the schemes. Both are government-backed schemes in which the return of investment will be guaranteed. Where SSY is a scheme for the future of the girl child, there is a plan to prepare a PPF retirement fund. Both have the facility of saving tax.
SSY accounts can be opened in the name of any girl child who is up to 10 years of age, while PPF can be started by an Indian citizen who is above 18 years of age. While the minimum amount for investment in SAY is Rs 250, the minimum limit for deposit in PPF is Rs 500.
who benefits more
Only one person can link himself with both PPF and Sukanya Samriddhi accounts. It can also take advantage of tax. Suppose a person has opened his PPF account who also wants to open Sukanya Samriddhi account of his daughter, then there is no problem in it. At present, interest of 7.1% is being available on PPF, while 7.6% on Sukanya Samriddhi.
Accordingly, Sukanya Samriddhi Yojana is more beneficial. If you are planning an investment for good returns, which will benefit in the future and also get tax exemption, then PPF is better for that. If you want to secure your daughter’s future then you can start Sukanya Samriddhi. In this, tax exemption is also available with high returns.
Major difference between the two plans
The age of 10 years is fixed to start SSY scheme. PPF account can be opened by the parents in the name of a minor child. If the child has attained the age of 18 years, then PPF account can be started in his name also. Only one SSY account can be opened in the name of a girl child and maximum 2 accounts can be opened in a family. PPF account should be only in the name of one person. The minimum investment in SSY is Rs 250 and the maximum is Rs 1.5 lakh. The minimum amount in PPF is Rs 500 and maximum is Rs 1.50 lakh per annum.
when can you withdraw money
The maturity period of SSY is 21 years or this account matures when the daughter attains the age of 18 years. The lock-in period in PPF is 15 years. In both the schemes, you cannot withdraw money except for a few exceptions. Medical emergency has been kept in exception. Both the schemes can be started in post office and bank. In SSY, one can withdraw money after 18 years, whereas in PPF, withdrawal is allowed only after maturity. Both the schemes can be transferred from post office to bank or from bank to post office.