Sukanya Samriddhi Yojana (SSY)
The Sukanya Samriddhi Yojana (SSY) is a small savings scheme launched by the Government of India in the interest of the girl child. The fund is designed to encourage parents/guardians of a girl child to save for future expenses for her, such as education and marriage. The scheme was launched on 22nd January 2015 as part of the Beti Bachao, Beti Padhao campaign. The SSY comes with a fixed interest rate and returns are compounded every year.
Public Provident Fund (PPF)
The Public Provident Fund scheme is a long-term investment scheme backed by the Government of India which offers safety and attractive interest rates which are fully exempt from tax.
Sukanya Samriddhi Yojana Vs Public Provident Fund
The Sukanya Samriddhi Yojana carries an interest rate of 8.5% per annum, while the Public Provident Fund carries an interest rate of 8% per annum.
The minimum deposit required to open an SSY account is Rs.250. A minimum deposit of Rs.500 is required to open a PPF account.
The maximum deposit limit for both SSY and PPF is Rs.1.5 lakhs per annum.
The SSY achieves its maturity when the girl child turns 21 years of age. Partial withdrawals can be made when the girl child turns 18 years old for the purpose of education or marriage. The PPF achieves its maturity 15 years from the date of deposit.
Both the PPF and SSY enjoy a full tax exemption status for a maximum contribution of Rs.1.5 lakhs under Section 80C of the Income Tax Act, 1961.
The PPF is open to any citizen of India. The SSY is only for girl children.
There is no age limit to open a PPF account. The SSY can only be opened for girl children under the age of 10 years.
The PPF is operated by the account holder. The SSY is operated by the parent or legal guardians of the girl child. The girl child may operate this account herself after she attains the age of 10 years.
Loan Against Deposit
The PPF allows the account holder to take a loan against the deposit after 3 years of opening the account. The SSY does not allow for loans against the deposited amount.
|Details||Sukanya Samriddhi Yojana||Public Provident Fund|
|Interest Rate||8.5% per annum||8% per annum|
|Maximum Deposit||Rs.1.5 lakhs per annum||Rs.1.5 lakhs per annum|
|Maturity||When girl child reaches the age of 21 years||15 years from the date of deposit|
|Tax liability||Full tax exempt||Interest is taxable|
|Target Investors||Any Indian citizen||Girl child|
|Age Limit||No age limit||Girl child below the age of 10 years|
|Operation||Account Holder||Parents/Legal Guardians of the girl child|
|Loan Against Deposit||After 3 years of opening||No permitted|