Sukanya Samriddhi Account vs Public Provident Fund

An informed and analytical investment decision aids in offering higher investment benefits in the long run. Before investing in any tool, you must consider certain basics such as the goal of the investment, the returns and rate of interests offered, risks involved etc. And basis of your requirement, you must consider an option.

Read more
Investing in your child's future:A wise decision & a loving choice
  • Insurer pays premium in case of loss of life of parent

  • Create wealth for child’s aspirations

  • Tax Free maturity amount+

  • 12+ plans available

We are rated~
rating
6.7 Crore
Registered Consumers
51
Insurance Partners
3.4 Crore
Policies Sold
  • Insurer pays premium in case of loss of life of parent

  • Create wealth for child’s aspirations

  • Tax Free maturity amount+

  • 12+ plans available

Nothing Is More Important Than Securing Your Child's Future

Invest ₹10k/month your child will get ₹1 Cr Tax Free*

+91
Secure
We don’t spam
Please wait. We Are Processing..
Your personal information is secure with us
Plans available only for people of Indian origin By clicking on "View Plans" you agree to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs #Discount offered by insurance company
Get Updates on WhatsApp
We are rated~
rating
6.7 Crore
Registered Consumers
51
Insurance Partners
3.4 Crore
Policies Sold

There are a host of private institutions offering good investment avenues. However, public sector is also not left behind in introducing best investment options with higher returns. And when it comes to offering the safest investment avenues, two options that has been gaining popularity eventually are Sukanya Samridhi Yojana (SSY) and Public Provident Fund (PPF).

SSY v/s PPF

Both the schemes are introduced by the Government of India for long-term investment goals. As they are owned by the government, the returns are fully secured and eligible for earning tax benefits as well. Having said that it is prudent to know a bit of these investments before parking your money into them.

  • Sukanya Samriddhi Yojana: When it comes to securing a safe future of a girl child, there is no better option than Sukanya Samriddhi Yojana. Launched in the year 2015 under the campaign “Beti Bachao Beti Padhao”, the scheme encourages to save a considerable portion for the girl’s future. One can also save on tax up to Rs 1.5 lakh under Section 80C of the Income Tax Act. The applicable rate of interest for the year 2020 is 8.4%, on a compounded basis. The minimum deposits start from Rs 250 and can go up to the maximum of Rs 1.5 lakh in a year.

  • Public Provident Fund: PPFs aim at mobilize small savings and offer higher returns along with tax benefits. A minimum investment of Rs 500 is necessary to open an account where one can invest up to a maximum of Rs 1.5 lakh in a year. The account matures in a duration of 15 years, where the returns are offered at a rate of interest 7.9%.

People also read: Child Plan

SSY v/s PPF Account: Key Highlights

Not to mention, there are some alluring features that make them highly preferred investment options over the others. Some of the key highlights of these investment tools are:

Parameters Sukanya Samridhi Yojana Public Provident Fund
Investment Type Long-term Long-term
Who can open A parent of a girl child An Indian citizen can apply. Minor accounts are also available
Minimum Deposit Rs 250 Rs 500
Maximum Deposit Rs 1.5 lakh Rs 1.5 lakh
Maturity Period 21 years 15 years
Age Eligibility Till the girls turns 10 years No upper age limit
Rate of Interest 8.4% 7.9%

Investment Investment
Secure Secure
Child Banner
Secure your child’s future with or without you
Start Investing
₹10,000/Month
& Get
₹1 Crore*
*Standard T & C Apply

People also read: Sukanya Samriddhi Yojana Calculator

Sukanya Samridhi Yojana (SSY) Vs Public Provident Fund (PPF)

Despite being the govt.-owned investment schemes, these accounts differ from each other in many ways:

  • While Sukanya Samridhi Yojana Account is opened by the parents in the name of the girl child, PPF account can be opened by anyone who is a citizen of India.

  • The rate of interest for both keeps changing as they are linked to government security and it is reviewed by every quarter. The current ROI in SSY is 8.4%, where the calculation is done basis on the balance in the account in 10th and the end of the day in the month. So, in case of SSY, investments should be done before 10th, every month.

On the other hand, the offered ROI in PPF for current year is 7.9%, where the calculation is done based on the lowest balance available in the account in 5th to the last day of the month.

  • In case of deposits as well, the schemes differ from each other. SSY requires minimum deposit of Rs 250 to open an account. While in PPF, it is Rs 500. However, the maximum limit for both schemes is same i.e. Rs 1.5 lakh.

  • On the basis of the maturity, both these schemes remain different. The maturity period for SSY is 21 years, while it is 15 years of PPF account.

  • Sukanya Samridhi Yojana Account allows partial withdrawals once the girl child attains the age of 18 years up to 50% of the total balance in the account. In case of PPF, one can withdraw up to 50% of the account balance after 5 years from the date of account opening.

  • PPF account comes with nominee option, which is not applicable in case of Sukanya Samridhi Yojana.

  • A maximum of two accounts can be opened in case of SSY, one account for each girl child. But under PPF account, a person can open only one account.

  • In terms of premature closure, both the schemes differ from each other. SSY allows premature withdrawals in unavoidable conditions such as untimely demise of the account holder, if someone is unable to continue on the logical grounds etc. On the other hand, PPF account can be withdrawn before it matures after 5 years under the grounds such as treatment of deadly diseases, higher education etc.

Child Plan vs Sukanya Samriddhi Yojana vs Public Provident Fund

FAQ's

  • Sukanya Samriddhi Account and Public Provident Fund-which one is better?

    Well, it is a tough question to answer as each comes with their own set of features and benefits that fit the different individuals. However, SSY is good for those who are the parents of a girl child and want a secured future for her. Moreover, in terms of current ROI as well, SSY offers 0.5% higher returns than PPF. Again it is completely your call now. PPF offers suitable flexibility and SSY offers higher returns, you should decide as per your requirement and investment goals as we mentioned in the starting of this article. Analyse your needs first then go for the one that perfectly suits your budget and goals.

*All savings are provided by the insurer as per the IRDAI approved insurance plan.
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
#The lumpsum benefit is calculated if policyholder invested ₹10000 monthly for 10 years in the fund with a policy term of 20 years. This Point To Point past performance data of last 10 years has been used to illustrate a scenario for the customers benefit. It is assumed that the past 10 years returns would have also been delivered in last 20 years. This is not guaranteed and not in anyway indicative of what the customer may actually get 20 years from now. The investment is subject to market risk and the risk is borne by the policyholder.
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

child plan investment

Investment

child plan secure

Secure

Secure your Child’s
Career Goal
Start Investing ₹10,000/Month
& Get ₹1 Crore*
*Standard T & C Apply
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Child Plan3

Child plans articles

Recent Articles
Popular Articles
Child Education Planner

05 Feb 2024

Ensure your child's dreams come true with a Child Education
Read more
Indian Bank Education Loan

16 Jan 2024

Indian Bank stands tall as a reliable partner in your academic
Read more
Education Loan for Abroad Studies

16 Jan 2024

Pursuing international education is a dream for many aspiring
Read more
Education Loan Without Collateral

16 Jan 2024

An Education Loan Without Collateral is a financial solution
Read more
Canara Bank Education Loan

15 Jan 2024

Canara Bank Education Loan is a comprehensive financial solution
Read more
Top 12 Government Schemes for Girl Child
Top 12 Government Schemes for Girl Child Government schemes for the girl child are a vital aspect of social welfare
Read more
How to Check Post Office Sukanya Samriddhi Yojana Account Balance
The Sukanya Samriddhi Yojana is a savings scheme launched in the year 2015 by Prime Minister Narendra Modi under
Read more
Sukanya Samriddhi Yojana Calculator
The Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme that aims to create a corpus to
Read more
Prime Minister Schemes For Boy Child
The Prime Minister Schemes for Boy Child stand as an important initiative aimed at nurturing the boy child and
Read more
Best Child Investment Plans to Invest in 2024
Planning for the child’s secured future is not an easy task. Most of the people try to create a strong financial
Read more

top
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL