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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Invest ₹10k/month and your child gets ₹1 Cr tax free*
Save upto ₹46,800 in tax under Section 80(C)
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
Nothing Is More Important Than Securing Your Child's Future
Invest ₹10k/month your child will get ₹1 Cr Tax Free*
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.
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.
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.
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:
There are 2 ways to open Sukanya Samriddhi Yojana offline, that is, with the bank or at the post office.
Much easier than directly visiting the bank branch, to open your Sukanya Samriddhi Yojana account online, all you have to do is
It is your choice how you would like to open your child’s Sukanya Samriddhi Yojana account.
Here are some simple steps to open Public Provident Fund (PPF) account
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!
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