Sukanya Samriddhi Yojana vs Employees Provident Fund: Projected returns on Rs 10,000 monthly investment over 15 years

Sukanya Samriddhi Yojana secures a girl child’s future, while EPF helps employees build a retirement fund. Both offer attractive returns and tax benefits, making them reliable long-term investment options.

ZeeBiz WebTeam | Sep 19, 2024, 01:04 PM IST

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Sukanya Samriddhi Yojana (SSY) and Employees' Provident Fund (EPF) are two popular long-term savings options in India, each offering attractive returns and tax benefits. SSY is tailored to secure the future of a girl child, while EPF helps employees build a retirement fund. Knowing the features, deposit limits, and tax benefits of these schemes allows individuals to make informed financial decisions. However, SSY and EPF serve different purposes and should not be compared on the same parameters.

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Sukanya Samriddhi Yojana (SSY)

Deposit Limits:

Minimum deposit: ₹250
Maximum deposit: ₹1.5 lakh per financial year

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Eligibility:

Can be opened in the name of a girl child up to 10 years of age

Only one account per girl child

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Where to Open

Where to Open:

Available at post offices and authorized banks

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Withdrawal Conditions:

Withdrawals permitted for higher education of the account holder

Premature closure allowed for marriage after the girl reaches 18 years

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Transferability:

Account can be transferred between any post office or bank across India

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Maturity:

Account matures after 21 years from the date of opening

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Employer Contribution:

Employer matches the employee's contribution to the EPF account

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Tax Benefits:

Deposits qualify for deduction under Section 80-C of the Income Tax Act

Interest earned is tax-free under Section 10 of the I.T. Act

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Employees' Provident Fund (EPF)

Contribution:

Minimum salary for EPF eligibility: Rs 15,000 per month
Minimum contribution: Rs 1,800
Maximum contribution: 12.5% of basic salary and Dearness Allowance (DA)
Additional contributions can be made under Voluntary Provident Fund (VPF)

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Interest Rate:

Current EPF interest rate: 8.25%

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Tax Benefits:

EPF is an Exempt-Exempt-Exempt (EEE) scheme; contributions up to ₹1.50 lakh, interest earned, and maturity amount are tax-free

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Withdrawal:

Allowed after 10 years of service or at 58 years of age

Contributions can be made until the age of 60

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Maturity Amount Calculation