All you need to know
The Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY) are two tax-efficient government savings schemes that offer good interest rates. Both are suitable for creating a corpus over the long term, though SSY offers higher interest rates than PPF. Here’s how to choose between them.
PPF vs Sukanya Samriddhi Yojana: Precondition Only parents of a girl under the age of 10 years can open an Sukanya Samriddhi Yojana account. There is no such restriction for a PPF account.
PPF vs Sukanya Samriddhi Yojana: Lock-in period The maturity period of an Sukanya Samriddhi Yojana account is 21 years while it is 15 years for PPF. One can take a loan against the PPF balance, but not in the case of SSY. An SSY account can be closed before the maturity period if the daughter is getting married and is above 18 years of age. A PPF account can be extended for blocks of five years after the initial period of 15 years. This option is not available for SSY.
PPF vs Sukanya Samriddhi Yojana: Investment amount The maximum investment per year for both is Rs.1.5 lakh. The minimum amount for PPF is Rs 500 while it is Rs 250 for SSY. PPF vs Sukanya Samriddhi Yojana: Where to open Both can be opened at a post office or a bank. It is relatively easier to manage with a bank as transfers to the account can be made online. To make online transfers for a post office account, one needs to open a post office savings account and transfer from there to the PPF/Sukanya Samriddhi Yojana account (limited to Rs.25,000 per transfer)…Read More Source By: economictimes
