PPF vs Sukanya Samriddhi Scheme: Which can create a larger corpus on maturity with Rs 1.5 lakh annual investment for 15 years?

Sukanya Samriddhi Scheme vs PPF: Everybody wants to secure a stable financial future but often gets confused about where to invest. If you are looking for investment ideas, you can choose between Sukanya Samriddhi Yojana (SSY) and Public Provident Fund (PPF). These two are among the most popular and reliable investment options in India. Both offer attractive interest rates, tax benefits, and long-term growth, but the question arises: which one creates a larger corpus with an annual investment of Rs 1.5 lakh for 15 years? Here's a detailed comparison of both schemes to help you make an informed investment decision.

Sukanya Samriddhi Yojana (SSY)

Designed to secure a girl child’s future, the Sukanya Samriddhi Yojana allows a minimum deposit of Rs 250 and a maximum of Rs 1.5 lakh per financial year. The account can only be opened in the name of a girl child, up to 10 years of age. It offers tax benefits under Section 80C, with interest also being tax-free under Section 10. 

The account can be managed at post offices or authorised banks and is transferable across India. 

It should be noted that deposits can be made for a maximum period of 15 years from the date of opening the account, while the maturity period is 21 years. Withdrawals are allowed for higher education expenses, and premature closure is permitted after the account holder's marriage at the age of 18 or older.

Maturity Amount in 21 years

Over a 21-year term, an investment of Rs 1.5 lakh annually for 15 years can yield a maturity value of Rs 69,27,578, with total interest earned amounting to Rs 46,77,578.
Maturity value in 21 years: Rs 69,27,578
Total investment: Rs 22,50,000
Total interest earned: Rs 46,77,578

Public Provident Fund (PPF)

The Public Provident Fund, a more flexible scheme, allows deposits in lump sums or in 12 installments. The minimum deposit is Rs 500 per year. 

PPF accounts cannot be held jointly, but nomination is allowed during and after the account opening. It has a maturity period of 15 years, with the option to extend for 5 years at a time.

Like SSY, PPF offers tax benefits under Section 80C, and the interest earned is also tax-free. Withdrawals are allowed after the 7th financial year. 

Maturity Amount in 15 years
If you invest Rs 1.5 lakh annually for 15 years, the maturity value after 15 years would be Rs 40,68,209, earning a total interest of Rs 18,18,209.

Comparison and Conclusion

Both SSY and PPF are strong long-term investment options, but for an annual investment of Rs 1.5 lakh over 15 years, SSY generates a slightly larger maturity corpus. However, the choice between SSY and PPF should depend on your specific financial goals, eligibility, and the time horizon for withdrawals.