The eligibility criteria for PPF scheme states that a girl child must be below 10 years of age at the time of opening the account and one girl child can hold only one SSY account. Furthermore, parents can open a maximum of two accounts for two daughters. However parents also have an option of opening three accounts in case two of their daughters are twins.
WHat is the Difference Between PPF and Sukanya Samriddhi Yojana
Selecting the appropriate savings scheme to achieve your financial goals can be challenging. Although all of them have some benefits, it is essential to select the most suitable one according to your needs. Sukanya Samridhi Yojana (SSY) and Public Provident Fund (PPF) are both profitable savings schemes.
However, comparing Sukanya Samriddhi Yojana vs PPF is essential in order to select the most beneficial one among them. Nonetheless, before proceeding, it becomes essential to learn about these schemes in detail so that you can make an informed approach.
What Is Sukanya Samridhi Yojana (SSY)?
The Government of India launched this scheme with the aim of securing the future of a girl child. Parents use this money to fund their daughter’s education and marriage as soon as they become 18 years of age.
Features of Sukanya Samridhi Yojana are as follows:
- Contribution duration: 15 years
- Duration of account: Until a girl turns 21 years or gets married.
- Rate of interest: 7.6% p.a.
- Minimum contribution: ₹ 250
- Maximum contributions: ₹ 1.5 Lakhs
- Taxability of Returns: You will not have to pay any taxes on returns.
Considering these features, you can open an SSY account by following some simple steps so that your daughters can benefit from it.
How to Open Sukanya Samriddhi Yojana Account?
You can follow the steps below to open a Sukanya Samriddhi Yojana account:
Step 1: Navigate to the official website of RBI or any public or private sector bank.
Step 2: Download the SSY account application form.
Step 3: Fill in the required details accurately.
Step 4: Arrange and upload the necessary documents appropriately.
Step 5: Pay the deposit amount by online transfer of funds.
Step 6: Select the instalment frequency and duration as per your convenience.
Step 7: Once done, submit the application to open your account.
Furthermore, you will receive a notification each time whenever there is a transaction from the account. To minimise the chances of errors, you can keep the documents ready before starting with the account opening process.
What are the Documents Required to Open Sukanya Samriddhi Yojana Account
You will require the following documents for opening an SSY account:
- Birth certificate of the girl child whose name the account will be in
- Identification proof documents of the parents
- Address proof documents of the parents
- Identification proof documents of the girl child
- Address proof documents of the girl child
What Is a Public Provident Fund (PPF)?
This, too, is a government-backed scheme that can have a maturity period of 15 years. Additionally, you can increase the duration of this scheme even after it has crossed the maturity period. However, there is also a lock-in period of six years, beyond which you can make partial withdrawals in case of urgent fund needs.
Features of Public Provident Fund are as follows:
- Duration of account: 15 years and above
- Rate of interest: 7.1% p.a.
- Minimum contribution: ₹ 500
- Maximum contributions: ₹1.5 Lakhs
- Taxability of Returns: You will not have to pay any taxes on returns.
Furthermore, you can open a PPF account by following some simple steps to benefit from this scheme.
How to Open a PPF Account?
You can follow the steps below to open a Public Provident Fund account:
Step 1: Move to the official website of a financial institution.
Step 2: Visit the Public Provident Fund tab and click on ‘New PPF Account’.
Step 3: Enter the essential details.
Step 4: Input the branch name and branch code of the bank nearest to your residence.
Step 5: Enter the nominee details that are mandatory.
Step 6: Click on the 'Submit' button to navigate to the next screen.
Step 7: Verify the details entered and click on ‘Proceed’.
Step 8: Click on ‘Print PPF Online Application’ for a hard copy of the form.
Once done, you can visit your nearest bank branch to submit the necessary documents and application form to open your PPF account. For this, you should note the necessary documents that you will require such that you can easily fill in the forms.
What are the Documents Required to Open Public Provident Fund Account
You will require the following documents for opening a PPF account:
- Identity proof documents of the account holder
- Address proof documents of the account holder
- A copy of PAN card
- Nomination form
Once you have a clear idea regarding both schemes, you can proceed to know the differences between them.
What are the Differences Between PPF and Sukanya Samriddhi Yojana
Below are some prominent differences between PPF and Sukanya Samriddhi Yojana that you should note:
Public Provident Fund
Sukanya Samriddhi Yojana
The main objective of this scheme is to provide sumptuous returns in the long run.
The main objective of this scheme is to secure the future of a girl child.
Maximum Account You Can Open
Individuals can open only a single account in their name.
For one girl, only one account is available. However, parents can at max open two accounts for two daughters.
Age Range for Account
Individuals from any age group can open this account.
You can open this account for your daughter before she turns 10.
Minimum: ₹ 500 Maximum: ₹ 1.5 Lakhs
Minimum: ₹ 250 Maximum: ₹ 1.5 Lakhs
The duration of this scheme is 15 years.
The duration of this scheme is either till the girl turns 21 years or gets married.
Individuals who can open an account
Any Indian resident can open an account.
Guardian of a girl child is eligible to open the account.
Rate of Interest
The current interest rate for this scheme is 7.1%.
The current interest rate for this scheme is 7.6%.
You can withdraw up to 50% of the bank balance after six years from the date of account opening.
A girl can withdraw about 50% of the money for education or marriage after she turns 18.
Complete withdrawal of the money is available only after the maturity of this scheme.
A girl can withdraw the money completely after 21 years or when she gets married.
You can make anyone the nominee for your PPF account.
You cannot make a nominee in the case of an SSY account.
You can apply for a loan against a PPF account.
You cannot apply for loans against an SSY account.
FAQs on Sukanya Samriddhi Yojana vs PPF
The eligibility criteria for the PPF scheme states that an applicant should be a resident of India, can be an adult or minor and should have only one account under this scheme.
The similarities between both these schemes are that both these schemes have been launched by the government considering the welfare of citizens. For both of them, you can deposit money via demand draft, cash, or cheque as per your convenience. You can visit your nearest post office or banks that offer the respective schemes, to open an account.
Also, for both these schemes, you can claim tax benefits under Section 80C of the Income Tax Act. Accordingly, you can receive a deduction of up to ₹ 1.5 Lakhs on the amount that you contribute towards this scheme. In addition to this, you can easily transfer the SSY or PPF account from the bank to the post office and vice versa.
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