Sukanya Samriddhi vs PPF Last Updated : 24 Oct 2019

The Sukanya Samriddhi Yojana account is a government scheme that enables parents to build funds for their daughter’s future. Meanwhile, the Public Provident Fund is a scheme that allows investors to earn tax-free interest.

The Public Provident Fund (PPF) scheme and the Sukanya Samriddhi Yojana scheme are both backed by the Government of India. Therefore, any contributions made towards the scheme are safe and secure. Under Section 80C of the Income Tax Act, 1961, tax benefits can be claimed for any contributions made towards both the schemes.

Sukanya Samriddhi Yojana vs PPF

Given in the table below are the main features of the Sukanya Samriddhi Yojana (SSY) and Public Provident Fund (PPF) schemes:

Features Sukanya Samriddhi Yojana PPF
Objective The main aim of the scheme is to secure the future of a girl child. Small savings scheme that provides good returns over the long run.
Who can open an account? The parent or legal guardian can open an account on behalf of a girl child. Any individual who is a resident Indian is eligible to open an account. An 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 in case of two girl children. An individual can open only one account under his name.
Age criteria An account can be opened under the name of a girl child until she attains the age of 10 years. An account can be opened on behalf of a minor as well.
Maturity period The tenure of the scheme is 21 years or until the girl gets married after she attains the age of 18 years. The lock-in period of the scheme is 15 years.
Deposits The minimum and maximum deposits that can be made in a year are Rs.250 and Rs.1.5 lakh, respectively. The minimum and maximum deposits that can be made in a year are Rs.500 and Rs.1.5 lakh, respectively.
Tax benefits Under Section 80C of the Income Tax Act, tax benefits of up to Rs.1.5 lakh can be availed for contributions made towards the scheme. Under Section 80C of the Income Tax Act, tax benefits of up to Rs.1.5 lakh can be availed for contributions made towards the scheme.
Rate of interest Currently, the rate of interest offered by the scheme is 7.9% p.a. and it is compounded on a yearly basis. Currently, the rate of interest offered by the scheme is 8.4% p.a. and it is compounded on a yearly basis.
Mode of deposit Deposits can be made in the form of demand draft, cheque, or cash. Deposits can be made in the form of demand draft, cheque, online transfer, or cash.
Opening of account An account can be opened at post offices and banks that offer SSY An account can be opened at post offices and banks that offer PPF
Transfer of account The account can be transferred from a bank to a post office and vice versa. The account can be transferred from a bank to a post office and vice versa.
Withdrawal Complete withdrawal is allowed only after the completion of 21 years. Complete withdrawal is allowed only at the time of maturity.
Partial withdrawal Up to 50% of the amount that is available the previous year of the withdrawal can be withdrawn for the purpose of education or marriage of the girl child. However, the girl child must attain the age of 18 years. Up to 50% of the amount can be withdrawn after the completion of 6 years from the date the account was opened.

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