Sukanya Samriddhi vs Public Provident Fund
It is certainly important to know and understand what these two types of saving instruments are before investing:
(On 23 July 2018, the criteria for minimum annual deposit for the Sukanya Samriddhi Yojana account has been revised to Rs.250 from the earlier amount of Rs.1,000. Also the interest rate for the July-September quarter is 8.1%.)
What is Sukanya Samriddhi Yojana?
The Sukanya Samriddhi account was initiated by Prime Minister Narendra Modi with the intention for parents to be able to help save and hence be able to afford their girl child’s education and marriage with financial independence, promising a great future. As of now, such an account can be opened in the post office or at certain banks in and around the country. The interest rate collected in this account as of 2015-2016 was 9.2% per annum whereas for 2014,the interest that was used for the account was 9.2% by the account holders. This type of account and savings product also come with maturity benefit.
What is Public Provident Fund?
The Public Provident Fund(PPF) Scheme, 1968 is a tax-free savings avenue that was introduced by the Ministry of Finance (MoF) in India in the year 1968. Interest earned on deposits in the PPF account are not taxable. Deposits made towards PPF accounts can be claimed as tax deductions. This makes the PPF Scheme one of the most tax efficient instruments in India. It was launched to encourage savings among Indians in general, especially to encourage them to create a retirement corpus.
Public Provident Fund V/s Sukanya Samriddhi Yojana
Here are the main advantages of Public Provident Fund over Sukanya Samriddhi Yojana:
- On the maturity of your PPF account, you can extend the tenure any number of times, for a period of 5 years each time. If you choose to extend the tenure of your PPF account, this must be done within 12 months from the date of maturity. Also in the case of SSY an extension over 14 years is applicable but only up to 7 years.
- For PPF deposits can be made Via cash, cheque,PO, DD, online funds transfer; as a one-time deposit or up to 12 installments whereas for SSY only cash, cheque and DD are accepted.
- PPF can be paid online whereas SSY do not have such service available to their account holders, yet (as of, December, 2015).
- Partial withdrawal is available only after the girl turns 18 years of age, that too only 50%. In the case of Partial premature withdrawals can be made every year from year 7; withdrawals are subject to conditions. Complete withdrawal of funds can be made only at maturity.
- Resident Indians, 18 years or older, can open a Public Provident Fund Account. There is no upper age limit for opening this account. For minors PPFs can be opened under certain conditions. SSY can be opened only for a girl child.
- Nominations are allowed Allowed; on opening the account or after, in the case of a PPF account.
- Only a minimum annual deposit of Rs. 500 is necessary to keep your PPF account active whereas Rs. 250 is necessary to be deposited at a minimum for an SSA account.
Here are the advantages of Sukanya Samriddhi Yojana over Public Provident Fund:
- Both have fixed interest schemes, but Sukanya Samriddhi Yojana has an interest rate of 8.1% whereas PPF interest rate is 8.7%.
- Interests are tax-free and deposited amounts are tax deductible U/S 80C of the Income Tax Act. Withdrawals are exempt from wealth tax. Under the same Act and Section the SSY account is completely free of any taxes or TDS.
Conclusion: Both these accounts are highly useful since they both are undertaken by the Government but the major advantage of Sukanya Samriddhi account, is simply the fact that this type of account yields more interest. However, this account is restricted to only a girl child whereas PPFs can be opened for a person of any age. Hence, it depends on the person’s gender and age to open a PPF account.
- Sukanya Samriddhi Yojana Calculator
- SSY Canara Bank
- Sukanya Samriddhi Yojana Documents Required
- Sukanya Samriddhi Yojana NRI
- Sukanya Samriddhi Yojana Interest Rate
- Sukanya Samriddhi Yojana Tax Exemption
- Sukanya Samriddhi Yojana Post Office
- Sukanya Samriddhi Yojana Age Limit
- Sukanya Samriddhi Account Online Check
- Online Transfer to SSY
- Sukanya Samriddhi Yojaa Bank List
- Sukanya Samriddhi Vs Children Mutual Fund
- SBI sukanya Samriddhi Account
- Sukanya Samriddhi Account Passbook
- Bank of Baroda Sukanya Samriddhi Account
- Sukanya Samriddhi Account Eligibility
- Sukanya Samriddhi Vs Fixed Deposit
- Sukanya Samriddhi Yojana Account For OCI And PIO
- PNB Sukanya Samriddhi Account
- Bank of Maharashtra Sukanya Samriddhi Account
- Union Bank Of India Sukanya Samriddhi Account
- Sukanya Samriddhi Yojana Premature Withdrawal
- Indian Bank Sukanya Samriddhi Account
- Central Bank Of India Sukanya Samriddhi Account
- Uco Bank Sukanya Samriddhi Account
- Features of Sukanya Samriddhi Account
- Sukanya Samriddhi Account In Oriental Bank Of Commerce
- SSY Calculator
- SSY Mobile Application
- Bank of India Sukanya Samriddhi Account
- Corporation Bank Sukanya Samriddhi Account
- Dena Bank Sukanya Samriddhi Account
- IDBI Bank Sukanya Samriddhi Account
- Indian Overseas Bank Sukanya Samriddhi Account
- Sukanya Samriddhi Account Benefits
- Sukanya Samriddhi Account In Axisbank
- Sukanya Samriddhi Account In SBH
- Sukanya Samriddhi Account In State Bank Of Travancore
- Syndicate Bank Sukanya Samriddhi Account
- Beti Padhao Beti Bachao
- Loan against Sukanya Samriddhi Yojana
- Allahabad Bank Sukanya Samriddhi Account
- Andhra Bank Sukanya Samriddhi Account
- Sbbj Sukanya Samriddhi Account
- SBP Sukanya Samriddhi Account
- Vijaya Bank Sukanya Samriddhi Account
- PNB Sukanya Samriddhi Account
- Rules Relating To Sukanya Samriddi Account Yojana
- United Bank Of India Sukanya Samriddhi Account
- Rbi Rules For Sukanya Samriddhi Account Opening
- Alternative Birth Certificate for Sukanya Samriddhi Yojana
- Sukanya Samriddhi Vs Recurring Deposit
- ICICI Bank Sukanya Samriddhi Account