Know all the important points before investing
Compare SSY and PPF: If you are confused about this, then according to financial experts, it is all a matter of timing as to who can earn more profit. Although Sukanya Samriddhi Yojana (SSY) has a higher rate of interest, it can be a more profitable investment and can give your daughter a financially secure future.
New Delhi. SSY (Sukanya Samridhi Yojana) vs. PPF (Public Provident Fund) the highest interest is available in SSY, but if investment experts are to be believed, it all depends on the timing whether you can earn more profit from SSY (Compare SSY and PPF) or from PPF. Both these schemes have been started by the Government of India. One can invest in these schemes for saving a good future for daughters and for middle class people.
READ MORE:- PPF: This is a better option for investment in long term, chance to get 1 crore in 15 years
SSY (Sukanya Samriddhi Yojana)
Money can be deposited in SSY for 15 years after the birth of a daughter. There is no need to deposit huge amount to get this scheme. Its investment can be started from Rs 250 only, but if someone wants to deposit more amount then he can deposit up to Rs 1.50 lakh. The biggest advantage of depositing money in Sukanya Samriddhi Yojana is that the interest in this scheme is more than PPF. The rate of interest in SSY is 7.6% which is higher than other safe investment instruments.
It reduces the cost of marriage and education of the daughter of the parents, due to which they have to take loans later. Therefore, money is deposited in this scheme for 15 years and after that no money can be deposited from the 16th year to the 21st year. If desired, 50% of the amount can be withdrawn after 18 years. After 21 years, the entire amount is received with interest.
READ MORE:- Daughter will get 21 lakh rupees at the age of 21, SSY account opened in just 250 rupees
PPF (Public Provident Fund)
PPF can be a better investment tool because investing in PPF can bring many benefits, such as income tax exemption, government guarantee etc. The maturity of PPF account is 15 years but if desired, it can be extended for 5 years. However, a minimum deposit of Rs 500 and a maximum of Rs 1.50 lakh can be made in this account. On depositing it, exemption of up to 1.50 lakh is also available under section 80C of income tax.
But keep in mind that this exemption in income tax does not get the full 1.50 lakh exemption. For this, the rule of income tax is that the amount you have deposited in PPF account and Rs 1.50 lakh, whichever is less, you will get the same exemption. That is, if you deposit 50 thousand in PPF account, then you will get income tax exemption only 50 thousand not 1.50 lakh. This account earns interest at the rate of 7.1%.
SSY vs PPF, where to invest
If one should choose between SSY and PPF, then probably you will choose SSY only because the interest rate in it is higher than PPF but you should also do some part in PPF, say experts, who believe in PPF for 15 years Investment can be a good profit.
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