Sukanya Samriddhi Yojana (SSY) vs Public Provident Fund (PPF)

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
Interest Rates
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.

Minimum Deposit
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.

Maximum Deposit
The maximum deposit limit for both SSY and PPF is Rs.1.5 lakhs per annum.

Maturity
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.

Tax liability
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.

Target Investors
The PPF is open to any citizen of India. The SSY is only for girl children.

Age Limit
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.

Account Operation
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.