PPF vs Sukanya Samriddhi Yojana: A Comparison of Investment Growth
When it comes to investing for the future, two popular options in India are the Public Provident Fund (PPF) and the Sukanya Samriddhi Yojana (SSY). Both schemes have unique features, but which one will give your Rs 1,20,000 annual deposit a bigger boost over 15 years? Let’s explore!
Key Features
**Public Provident Fund (PPF)**
– **Lock-in Period**: 15 years
– **Interest Rate**: Approximately 7.1% (subject to change)
– **Minimum Deposit**: Rs 500 per year
– **Maximum Deposit**: Rs 1.5 lakh per year
**Sukanya Samriddhi Yojana (SSY)**
– **Lock-in Period**: Until the girl turns 21, or marriage after 18
– **Interest Rate**: Approximately 7.6% (subject to change)
– **Minimum Deposit**: Rs 250 per year
– **Maximum Deposit**: Rs 1.5 lakh per year
Eligibility
– **PPF**: Open to all Indian residents.
– **SSY**: Available for parents of a girl child under 10 years old.
Tax Benefits
Both PPF and SSY offer tax deductions under Section 80C, making them attractive for tax-saving investments. Interest earned and maturity amount are also tax-free!
Withdrawal Rules
– **PPF**: Partial withdrawals allowed after 7 years.
– **SSY**: Funds can be accessed when the girl is 18, with restrictions.
Financial Security
Both schemes are backed by the Government of India, ensuring a high degree of safety for your investments.
Which One Grows Bigger?
With an annual investment of Rs 1,20,000 for 15 years, here’s a rough comparison:
– **PPF**: After 15 years, you could expect a maturity amount of around Rs 30.6 lakh.
– **SSY**: With its higher interest rate, you might end up with approximately Rs 32.8 lakh!
In terms of returns, SSY takes the crown, but it’s crucial to consider your personal goals and circumstances.
Final Thoughts
Choosing between PPF and SSY depends largely on your financial goals. For a girl child’s education or marriage, SSY is an excellent choice, while PPF is great for general savings.
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