SSY VS PPF SCHEME: Every father wants to raise his daughter like a princess and wants to fulfill her every wish. They start saving money from childhood for every need of their daughter including her education, and marriage.
If you also want to save a large amount for your daughter for a long time, then you can take the help of government schemes.
Today we are going to talk about two great government schemes, the Sukanya Samriddhi Yojana and the Public Provident Fund (PPF).
By investing in both these schemes, you can make your daughter’s future financially strong. But, the question arises which scheme should you choose for your daughter. Let us understand the advantages and disadvantages of both these schemes very well.
Sukanya Samriddhi Yojana
Special scheme for daughters: This government scheme has been specially designed for daughters. You can open an account in this scheme in the name of any Indian girl till the age of 10 years.
Long-term but high interest: In this scheme, you have to invest for 15 years only, but the money is available only after 21 years. Currently, this scheme is offering an interest rate of 8.2%.
Minimum and maximum investment: You can deposit a minimum of ₹250 and a maximum of ₹1.5 lakh annually.
If you deposit ₹5000 every month, then in 15 years you will deposit a total of ₹9 lakh. According to the current interest rate on this, you will get an interest of ₹18,71,031 and the maturity amount will be ₹27,71,031.
Public Provident Fund (PPF)
Flexible investment option: PPF can be opened in anyone’s name, even in the name of a daughter. In this, you can deposit a minimum of ₹500 and a maximum of ₹1.5 lakh annually.
Short-term but low interest: PPF matures in 15 years. But, you can also extend it in blocks of 5 years each. Currently, it is offering an interest rate of 7.1%.
If you deposit ₹5000 every month, then in 15 years you will deposit a total of ₹9 lakh. On this, you will get an interest of ₹7,27,284 and the maturity amount will be ₹16,27,284.
If you extend it once for 5 years and invest for another 5 years, then in 20 years the total investment will be ₹12 lakh. On this, you will get an interest of ₹14,63,315 and the maturity amount will be ₹26,63,315.
Which Scheme is Better
If you want to withdraw money in a short time, then PPF can be a better option for you. At the same time, if you can invest for a long time and want higher returns, then Sukanya Samriddhi Yojana can prove to be beneficial for you. Tax exemption is available in both schemes.
