PPF vs Sukanya Samriddhi Yojana: With Rs 1 lakh annual investment for 15 years, which can create larger corpus on maturity?
Compare Sukanya Samriddhi Yojana (SSY) and Public Provident Fund (PPF) to determine which investment plan offers better returns for Rs 1 lakh annual investment over 15 years, considering benefits and maturity values.
Sukanya Samriddhi Scheme vs PPF: When it comes to securing a stable financial future, Sukanya Samriddhi Yojana (SSY) and Public Provident Fund (PPF) are two of the most reliable investment options in India. Both schemes offer tax benefits and attractive interest rates, but which one creates a larger corpus with a Rs 1 lakh annual investment for 15 years? This article delves into a detailed comparison of SSY and PPF, highlighting their features, tax advantages and maturity amounts to help you make an informed investment decision.
(Disclaimer: This is not an investment advice. Do your own due diligence or consult an expert for financial planning)
Sukanya Samriddhi Yojana (SSY)
- Minimum and Maximum deposit
- Minimum deposit: Rs 250
- Maximum deposit: Rs1.5 lakh per financial year
Eligibility
- Account can be opened in the name of a girl child up to 10 years of age
- Only one account per girl child
Account Management
- Can be opened in Post Offices or authorized banks
- Transferable across India
Withdrawal and Closure
- Allowed for higher education expenses
- Premature closure possible after the girl’s marriage at age 18+
Tax Benefits
- Deposit qualifies for deduction under Section 80-C of the Income Tax Act
- Interest is tax-free under Section 10 of the Income Tax Act
Maturity Amount in 21 years
- Maturity value in 21 years: Rs 47,88,079
- Total investment: Rs 15,00,000
- Total interest earned: Rs 32,88,079
Public Provident Fund (PPF)
Deposit Flexibility
- Deposits can be made in lump sum or in 12 installments
- Minimum deposit: Rs 500 per year
Eligibility and Nomination
- Joint accounts not allowed
- Nomination available during and after account opening
Account Transfer and Extension
- Account can be transferred between Post Offices
- Maturity period: 15 years, with the option to extend for 5 years at a time
Tax Benefits and Interest
- Deposit qualifies for deduction under Section 80C of the Income Tax Act
- Interest is tax-free
- Withdrawal allowed from the 7th financial year
Maturity Amount in 21 years
- Maturity value in 21 years: Rs 48,61,118
- Total investment: Rs 21,00,000
- Total interest earned: Rs 27,61,118