PPF Vs SSY: Whether it’s a son or daughter, every child holds a special place in one’s heart. However, the responsibility of marrying off daughters and providing for their education and wedding expenses starts to trouble a father from the moment they are born.
To meet all the financial needs associated with daughters right from childhood, parents start making investments early on. If you aim to save a substantial amount for your daughter, it is recommended to invest in long-term schemes.
The government runs the Sukanya Samriddhi Scheme especially for daughters. This scheme has been started keeping in mind the future of the daughter. PPF is also a long-term scheme, in which investors can invest in the name of the child and raise a large fund.
PPF matures in 15 years and SSY after 21 years. In such a situation, which scheme would be better to choose for the daughter? If you are confused about this, then know about your profit here.
In Sukanya Samriddhi Yojana, you have to invest for 15 years only, but you get the maturity amount after 21 years. Currently, 8.2 percent interest is being given in this scheme. Any father can deposit a minimum of 250 rupees per year and a maximum of 1.5 lakh rupees per year in this scheme.
If you invest 5000 rupees every month in this scheme, then you will deposit a total of 9 lakh rupees in 15 years. On calculation according to the current interest rate, you will get an interest of Rs 18,71,031 and the maturity amount will be Rs 27,71,031.
Anyone can deposit a minimum of Rs 500 per year and a maximum of Rs 1.5 lakh per year in the Public Provident Fund. The interest rate on this scheme is 7.1 percent. This scheme matures after 15 years, but to get more benefits, you can extend this scheme in blocks of 5 years each. If you invest Rs 5000 every month in PPF, you will deposit a total of Rs 9 lakh in 15 years.
If calculated according to the current interest rate, the total interest on the investment in 15 years will be Rs 7,27,284. Whereas the maturity amount will be Rs 16,27,284. If you extend it once for 5 years and continue investing for 5 more years, then your total investment in 20 years will be Rs 12,00,000. The interest on this will be Rs 14,63,315 and the maturity amount after 20 years will be Rs 26,63,315.
Which scheme is better to choose
Looking at it this way, investment in the Sukanya Samriddhi Scheme requires less and yields higher returns, whereas the PPF scheme offers lower returns. Extending the investment period increases the amount invested, but the returns still don’t match those of the Sukanya Samriddhi Scheme.
In this scenario, if you can wait until your daughter reaches 21 years old, investing in the Sukanya Samriddhi Scheme would be preferable. However, if you cannot afford to wait for an extended period, you may consider opting for the 15-year PPF scheme. Both schemes offer tax benefits. Make your choice based on your comfort and preferences.
