Difference Between Sukanya Samriddhi Yojana and PPF

Sukanya-Samriddhi-Yojana-vs-PPF

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The Public Provident Fund (PPF) and Sukanya Samriddhi Yojana are two popular investment schemes backed by the Government of India. Therefore, any contributions made in these schemes are safe and secure. While the Sukanya Samriddhi Yojana aims to secure the future of a girl child, the PPF is a scheme that allows investors to earn tax-free interest.

Sukanya Samriddhi Yojana Eligibility

The main eligibility criteria to open the SSY account are mentioned below:

  • A legal guardian or parent can open the SSY account on behalf of a girl child until she attains the age of 10 years.
  • The girl child must be AN Indian citizen.
  • Up to two accounts can be opened for two girls in a family.
  • A third SSY can be opened in case there are twin girls in a family.

Documents Required to Open SSY

Here are the documents that you need to submit to open Sukanya Samriddhi account:

  • SSY account opening form.
  • The birth certificate of the girl child needs to be submitted
  • Address proof and ID proof of the depositor must be submitted at the time of opening the account.
  • In case multiple children are born under one order of birth, a medical certificate has to be submitted
  • Other documents that are requested by the bank or post office.

Public Provident Fund Eligibility

The main criteria to open the Public Provident Fund are mentioned below:

  • A resident of India is eligible to open a PPF account.
  • Only one account can be opened by an individual under his/her name 
  • Another account can be opened by the individual on behalf of a minor
  • Hindu Undivided Families (HUFs) and Non-resident Indians (NRIs) are not allowed to open a PPF account

In the table given below, we have mentioned the main features of the Sukanya Samriddhi Yojana (SSY) and Public Provident Fund (PPF) schemes:

Features

Sukanya Samriddhi Yojana

Public Provident Fund

 

Objective

The main objective of SSY is to secure the future of a girl child

The main objective of the PPF scheme is to provide good returns in the long run

Who can open the account?

The parent or legal guardian can open an account on behalf of a girl child

An Indian resident can open the account

Age criteria

SSY can be opened under the name of a girl child until she attains the age of 10.

PPF account can be opened on behalf of a minor as well

Number of accounts

Only one account can be opened under a girl child’s name. A maximum of two accounts can be opened for a family in case there are two girls.

Only one account can be opened under an individual’s name

Deposits

The minimum amount that can be deposited is Rs 250 and maximum can be up to Rs 1.5 lakh

The minimum amount is Rs 500 and maximum amount is Rs 1.5 lakh in a year.

Maturity period

The tenure of the scheme is 21 years or until the girl attains the age of 18 years

The lock-in period of the scheme is 15 years

Interest rate

The rate of interest offered is 7.6% per annum and it is compounded on a yearly basis

The rate of interest is 7.1% currently and it is compounded on a yearly basis

Opening of account

An individual can open the account with post offices or banks that offer SSY

An individual can open the account with post offices or banks that offer PPF

Mode of deposit

Cheque, demand draft or cash

Cheque, demand draft, online transfer or cash

Tax benefits

Tax benefits of up to Rs 1.5 lakh can be availed under Section 80C of the Income Tax Act

Tax benefits of up to Rs 1.5 lakh can be availed under Section 80C of the Income Tax Act

Withdrawal

Complete withdrawal is allowed only after the girl attains the age of 18

Complete withdrawal is allowed after maturity of deposit

Transfer of account

The account can be transferred from a post office to bank and vice versa.

The account can be transferred from a post office to bank and vice versa.

Partial Withdrawal

The maximum amount that can be withdrawn is 50% of the amount that is available in the previous year. It can be withdrawn for the purpose of education or marriage of the girl child but only after she attains the age of 18 years.

Up to 50% of the amount can be withdrawn after 6 years are completed from the date the account was opened.

So, now you know all about Sukanya Samriddhi Yojana and Public Provident Fund. If you are looking for a plan to secure your girl child’s future, then SSY is the best option with higher returns and tax benefits. On the other hand, if you’re looking for an investment scheme with good returns in the long run, then PPF is an option you can consider.

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