PPF vs SSY: With the birth of a child, nowadays parents start planning for his future. The central government runs various savings schemes to make girls and women self-reliant.
Investing in these schemes yields huge funds in the long run. If a daughter is born in your house too and you want to invest for her future, then both Public Provident Fund and Sukanya Samriddhi Yojana are very popular investment schemes. You can get strong returns by investing in it.
Who can invest in SSY and PPF?
Significantly, Sukanya Samriddhi Yojana has been specially designed for girls below 10 years of age. By investing in this, the girl child gets a fat fund after the age of 21 years. At the same time, any person can invest in the Public Provident Fund Scheme. Along with this, PPF account can also be opened for a girl child above 10 years of age.
What is the lock in period in both the schemes
In Sukanya Samriddhi Yojana, SSY can be opened in any bank or post office for a girl child from birth to 10 years. In such a situation, the maximum limit of investment in this scheme is 21 years. On the other hand, if we talk about Public Provident Fund Scheme, then the total investment period in it is 15 years. SSY account can be closed even before marriage when the daughter turns 18. On the other hand, talking about PPF account, the investment period in it can be extended for 5 years after 15 years.
How much can be invested in both the schemes
You can invest from Rs 250 to Rs 1.5 lakh in a financial year in Sukanya Samriddhi Yojana account. On the other hand, talking about Public Provident Fund, you can invest a minimum of Rs 500 to Rs 1.5 lakh in this scheme in a year. Along with this, tell that under both the schemes you can open an account in any post office or bank.
Know how much interest is being received on both
By investing in Sukanya Samriddhi Yojana, you are getting an interest rate of 8 percent. This interest is transferred to the account on a quarterly basis. At the same time, interest is being received on the PPF account at the rate of 7.1 percent.
In such a situation, if you want to invest in any one scheme, then Sukanya Samriddhi Yojana can prove to be a better scheme for girls. Along with this, if we talk about withdrawal from the account, then the child can partially withdraw money from the SSY account after the age of 18 and after 21 years. Partial withdrawals can be made after the seventh year of investment in the same PPF account.
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