Sukanya Samriddhi Yojana vs Public Provident Fund

The government of India has launched many schemes and policies with time to facilitate savings and cater to different financial requirements of every individual as per their need.

Sukanya Samriddhi Yojana (SSY) and Public Provident Fund (PPF) are one of the 2 very promising and safe investment options provided by the Government of India. These 2 policies are the safest investment options available with substantial financial growth. So, the question arises that which policy is better for your girl child’s secure future?

Let us understand intensively about both Sukanya Samriddhi Yojana (SSY) and Public Provident Fund (PPF) that will help you make an informed decision as to what is best for you and your child.

Sukanya Samriddhi Yojana (SSY) v/s Public Provident Fund (PPF)

Both PPF (Public Provident Scheme) and SSY (Sukanya Samriddhi Yojana) accounts are very popular schemes for saving. These schemes allow you to accumulate a corpus over a time and offers guaranteed tax-free returns. However, SSY accounts can only be opened in a girl child’s name, while any individual can have 1 PPF account in his or her name. 

Here are some main features and parameters of Sukanya Samriddhi Yojana (SSY) and Public Provident Fund (PPF) scheme that will help you differentiate between the 2 and choose the one best suited for you and your child.

Parameters

Here are some of the main parameters of Sukanya Samriddhi Yojana and Public Provident Fund account:

One of the major points is that in case of maturity of SSY account, policyholder will face problems in re-investing the accrued amount in any other investment scheme that is tax-free. The maximum amount that is allowed to be invested in PPF scheme for tax saving purpose u/s 80C is Rs 1,50,000/ year. However, if you will require the accrued corpus for additional expenses such as higher education or marriage, the savings of SSY would be useful in future. 

Features

Here are some detailed features of Sukanya Samriddhi Yojana and Public Provident Funds account:

These key benefits and parameters will help you a lot to decide which government-backed scheme to choose for your child to make their future safe and secure.

If you feel like buying any of the 2 schemes, that is, Sukanya Samriddhi Yojana (SSY) or Public Provident Fund (PPF), here is how you can open the account and a list of some basic documents required to open the following accounts:

How To Open Sukanya Samriddhi Yojana (SSY) Account

1. Offline

   There are 2 ways to open Sukanya Samriddhi Yojana offline, that is, with the bank or at the post office.

   • Visit the post office/ bank
   • Fill in the Sukanya Samriddhi Yojana application form with the details of your daughter
   • Take birth certificate, aadhaar card, pan card, and all other necessary documents of the child with you
   • After verification, your account will be opened and the passbook will be handed over to the parents/ legal guardian of the girl child

2. Online

   Much easier than directly visiting the bank branch, to open your Sukanya Samriddhi Yojana account online, all you have to do is

   • Check the official website of the bank you wish to have an account with
   • Fill in all the required information of the child and the parents in the form as required
   • Attach scanned copies of all the mentioned certificates and address proofs
   • Click on the submit button and your Sukanya Samriddhi Yojana is good to go.

   It is your choice how you would like to open your child’s Sukanya Samriddhi Yojana account.

Documents Required To Open Sukanya Samriddhi Yojana Account

• Sukanya Samriddhi Yojana opening form
• Birth certificate of the girl child
• Address and identification proof of the parent or legal guardian
• Other documents requested by Post Office or by your bank

How To Open Public Provident Fund (PPF) Account? 

Here are some simple steps to open Public Provident Fund (PPF) account

• Fill in the application form
• PPF account opening form (Form A) available at your nearest Post Office or online
• Submit the form with the required KYC details
• Make the initial deposit for account opening. It can be from Rs. 500 to Rs. 1,50,000
• Once the process is complete, a passbook would be handed over to you
• Your PPF account is now fully-functioning

Documents Required to Open Public Provident Fund (PPF) Account

• PPF account opening form
• Nomination form
• Passport size photograph
• Pan card, Aadhaar card
• ID proof and residence proof as per KYC norms

Wrapping it up

Sukanya Samriddhi Yojana (SSY) Public Provident Fund (PPF) are highly beneficial and completely Government-backed schemes. Both of them have their advantages and disadvantages making it tough to choose. You can go for both of the schemes if you have a good amount of savings and want to invest in something that will surely be fruitful in the future. Ultimately, it is you who has to protect yourself and your loved ones!