Sukanya Samriddhi Account vs PPF: What will be your return on Rs 1,50,000 annual investment in 15 years?
Sukanya Samriddhi vs PPF: Which savings scheme gives higher returns in 15 years on Rs 1,50,000 yearly investment? Know
Sukanya Samriddhi vs PPF: Two of the most trusted government-backed options are the SSY (Sukanya Samriddhi Yojana) and PPF (Public Provident Fund). Both offer tax benefits under Section 80C and promise secure, risk-free returns. Let's see which one offers higher returns on an annual investment of Rs 1,50,000 over 15 years? In this article, we'll compare interest rates, maturity values and tax benefits.
(Disclaimer: Don't consider this as an investment advice. Do your own due diligence or consult an expert for financial planning)
SSY vs PPF: Interest Rates
- Sukanya Samriddhi Account offers an attractive 8.2% interest per annum (compounded yearly).
- PPF provides a comparatively lower interest of 7.1% per annum, also compounded yearly.
SSY vs PPF: Investment Limit
- SSY: Minimum Rs 250, maximum Rs 1.5 lakh per financial year.
- PPF: Minimum Rs 500, maximum Rs 1.5 lakh per financial year.
SSY vs PPF: Who Can Open the Account?
- SSY: Guardians can open it only for a girl child under 10 years. A family can open a maximum of two accounts (exceptions apply for twins/triplets).
- PPF: Open to any Indian resident adult or a guardian for a minor or person of unsound mind.
SSY vs PPF: Tax Benefits
- Both SSY and PPF qualify for tax deductions up to Rs 1,50,000 under Section 80C of the Income Tax Act.
- Interest earned on both accounts is also tax-free.
SSY vs PPF: Maturity Period
- SSY matures after 21 years from the date of account opening.
- PPF matures in 15 financial years, excluding the year of account opening. Can be extended in 5-year blocks.
SSY: Returns on Rs 1.5 Lakh Annual Investment for 15 Years
SSY:
Total investment: Rs 22,50,000
Total interest: Rs 46,77,578
Maturity value: Rs 69,27,578
PPF: Returns on Rs 1.5 Lakh Annual Investment for 15 Years
Total investment: Rs 22,50,000
Total interest: Rs 18,18,209
Maturity value: Rs 40,68,209
SSY vs PPF: Withdrawal Rules
- SSY: Up to 50% withdrawal allowed after girl turns 18 or passes 10th standard, for education or marriage.
- PPF: One partial withdrawal per year allowed after five years, up to 50% of eligible balance.
SSY vs PPF: Loan Facility
- SSY does not allow loans against the account.
- PPF allows loan after 1 year and before 5 years from account opening, up to 25% of the balance (with interest).
SSY vs PPF: Premature Closure
- SSY: Allowed after 5 years only under extreme circumstances like death or critical illness.
- PPF: Allowed after 5 years for reasons like higher education, medical emergencies, or change in residency status, with 1% interest penalty.
SSY vs PPF: Ideal for Whom?
- Sukanya Samriddhi Account: Best for parents investing in a girl child's future with long-term goals like higher education or marriage.
- Public Provident Fund: Suitable for general long-term savers seeking tax-free returns and more flexible options.