WHat is the Difference Between PPF and Sukanya Samriddhi Yojana

What Is Sukanya Samridhi Yojana (SSY)?

How to Open Sukanya Samriddhi Yojana Account?

What are the Documents Required to Open Sukanya Samriddhi Yojana Account

What Is a Public Provident Fund (PPF)?

How to Open a PPF Account?

What are the Documents Required to Open Public Provident Fund Account

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:

Criteria

Public Provident Fund

Sukanya Samriddhi Yojana

Objectives

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.

Amount Contributable

Minimum: ₹ 500 Maximum: ₹ 1.5 Lakhs

Minimum: ₹ 250 Maximum: ₹ 1.5 Lakhs

Duration

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%.

Partial Withdrawal

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

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.

Nomination Facility

You can make anyone the nominee for your PPF account.

You cannot make a nominee in the case of an SSY account.

Loan Facility

You can apply for a loan against a PPF account.

You cannot apply for loans against an SSY account.

Apart from the differences between Sukanya Samriddhi Yojana vs PPF, there are several similarities between them as well. Since both are long-term savings schemes, you should carefully evaluate each and every aspect while making your decision. You can also check out the eligibility criteria for these two schemes, which can provide valuable insight for better decision-making.

FAQs on Sukanya Samriddhi Yojana vs PPF

What are the eligibility criteria for Sukanya Samridhi Yojana (SSY)? up-arrow

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 are the eligibility criteria for the Public Provident Fund (PPF)? up-arrow

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.

What are the similarities between PPF and SSY? up-arrow

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.