Sukanya Samriddhi Yojana vs Public Provident Fund

When it comes to investing your hard-earned money in the right kind of policy, you need to be extremely thorough and well researched about all the plans and policies available in the market. Financial goals, risk factors, return on investment, interest rate, benefits, and tax rebates are some crucial factors one considers before buying any policy.

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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:

Parameters	Sukanya Samriddhi Yojana Account	Public Provident Fund
Rate of Interest	7.6% (Q1 FY 2021-22)	7.1% (Q1 FY 2021-22)
Entry Age	By Birth	15 Years
Amount Payable on entry	Rs.1,000/-	Rs.100/-
Minimum Deposit	Rs.250/-	Rs.500/-
Maximum Deposit	Rs.1,50,000/-	Rs.1,50,000/-
Tax Benefit	Rs.1,50,000/-	Rs.1,50,000/-
Maturity	21 years or after marriage	15 years
Premature Termination	After the age of 18	After 5 financial years
Nomination	No	Yes
Loan	No	Yes

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:

Features	Sukanya Samriddhi Yojana	PPF
Objective	To secure the future of girl child	To provide good returns over the long run
Who can open an account?	The parent/legal guardian on behalf of their girl child	Any individual who is a resident of India. Can be opened on behalf of minor as well
Number of accounts	One account per girl child. Maximum 2 in the family	One account in the name of any individual
Age criteria	Sukanya Samriddhi Yojana account can be opened till the girl child is 10 years	Public Provident Fund can be opened at any age and for minors as well
Maturity period	Tenure of 21 years or until the girl child is married after the age of 18	The lock-in period of the scheme is 15 years
Minimum Deposit	A minimum of Rs. 250 can be deposited every year	A minimum of Rs. 500 can be deposited every year
Maximum Deposit	A maximum of Rs. 1,50,000 can be deposited every year	A maximum of Rs. 1,50,000 can be deposited every year
Tax benefits	Tax benefits of up to 1,50,000 Rupees can be availed for a contribution made towards the scheme under Section 80C of the Income Tax Act.	Tax benefits of up to 1,50,000 Rupees can be availed for a contribution made towards the scheme under Section 80C of the Income Tax Act.
Rate of interest	7.6% per annum rate of interest compounded annually	7.1% per annum rate of interest compounded annually
Mode of deposit	Cheque, demand draft, or cash. Online transfer into Sukanya Samriddhi Post Office Account also available	Cheque, demand draft, cash or online transfer available
Opening of account	Sukanya Samriddhi Yojana account can be in Post Office or 28 other banks that offer SSY	Public Provident Fund account can be in Post Office or other banks that offer PPF
Transfer of account	Can be transferred from bank to Post Office and vice versa	Can be transferred from bank to Post Office and vice versa
Withdrawal	Complete withdrawal only after the marriage of girl child or completion of 21 years	Complete withdrawal only after the date of maturity
Partial withdrawal	After completing 18 years of age, up to 50% of the amount can be partially withdrawn for the purpose of either further education or marriage	Only after completing 6 years of account opening, up to 50% amount can be withdrawn

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

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
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!