Which is the most beneficial scheme in Sukanya Samriddhi Yojana and PPF? Sukanya Samridhi Yojana is a very popular scheme of the Central Government, which is being run keeping in mind the secure future of the daughters. At the same time, according to the existing rules of Public Provident Fund (PPF), you can open a PPF account in the name of your minor. If you want higher returns then you should choose Sukanya Samriddhi Yojana for Girl Child.
Do not invest all the money in Sukanya Samriddhi Yojana
According to experts we should not invest all our money in Sukanya Samriddhi Yojana. Some money should also be invested in Public Provident Fund. We get 7.6 percent interest on Sukanya Samriddhi Yojana. At the same time, the interest rate on PPF is only 7.1 percent. The interest rate is revised every four months. When one has to choose between PPF and Sukanya Samriddhi Yojana, then the investor should choose Sukanya Samriddhi Yojana, as it gives higher returns than PF. If you invest in PPF for 15 years, then it will give you a better option, but therefore a part of your earnings must be invested in PPF as well.
investment in ppf
By investing in PPF, you get a government guarantee. In this you also get the benefit of tax exemption. Under Section 80C of the Income Tax Act, you can claim tax exemption on investments up to Rs 1.5 lakh. The maturity of PPF account is 15 years, but it can be extended for another 5 years. The minimum and maximum deposit limit in this account is Rs 500 and 1.50 lakh, but keep in mind that if the PPF account is also opened in the name of the guardian, then both the accounts together will be considered as the maximum amount limit. It is not that 1.5 lakh can be deposited annually in both the accounts.
Sukanya Samriddhi Yojana
In this, a minimum amount of Rs 250 can be deposited annually. Under the scheme, a minimum amount of Rs 250 and a maximum of Rs 1.50 lakh can be deposited annually. The rate of interest is often high in Sukanya Samriddhi Yojana. The reason for this is that this scheme is to encourage parents like Kavita to raise money for the future of their daughter. However, deposits can be made till the daughter turns 15. Whereas no deposit is allowed between 16th year to 21st year. However, the interest on the account continues to accrue for 21 years. Hence, there is a restriction on investment beyond 15 years even if the money is locked.
Where can I open an account
Both the schemes are being run by the post office. Apart from this, the banks where the facility of opening Public Provident Fund account is available, there is also the facility of opening Sukanya Samriddhi Yojana account.