SSY vs PPF which is better?

  1. Are you parent or guardian of a girl child?
  2. Have you heard of Sukanya Samriddhi Scheme (SSS)?
  3. Are you wondering whether you should invest in Sukanya Samriddhi Scheme or Public Provident Fund?

If your answer to the above questions is YES! Then you are in the right place. I have compared SSY and PPF on the key parameters, and presented it in the table below. Go through the information and make your investment decision. My own opinion about where to invest is presented under the table. Read through and I hope I can help you make an informed decision about where you should be investing.

Comparison between Sukanya Smariddhi Yojana(SSY) and Public Provident Fund (PPF)

Features

Sukanya Samriddhi Yojana (SSY)

Public Provident Fund (PPF)

Difference between the Schemes

Eligibility Only for girl child aged 10 years or younger For every citizen of India, irrespective of age, and gender
Rate of Interest Currently – 8.5% (October – December 2016)

Linked to 10 year Government Bond Yield. Rate will be 0.75% higher than the bond yield

Currently – 8.0% (October – December 2016)

Linked to 10 year Government Bond Yield. Rate will be 0.25% higher than the bond yield

Investment amount Minimum Rs 1000/- p.a

Further in multiples of Rs 100/-

Maximum Rs 1,50,000/- p.a

Minimum Rs 500/- p.a

Further in multiples of Rs 100/-

Maximum Rs 1,50,000/- p.a

Scheme Termination 21 years after opening of the account, or if the girl child wishes to terminate account with ‘intent of marriage’. Whichever happens 1st. 15 years from the date of account opening.
Investment Period 15 years 15 years
Premature Withdrawal Upto 50% in 5 trenches, after girl child attains age of 18 years or passes 10th standard, whichever happens earlier. You could withdraw once a year, from the 7th year onwards. Such withdrawals must not exceed 50 per cent of the balance at the end of the fourth year, or 50 per cent of the balance at the end of the immediate preceding year, whichever is lower.
Premature Closure Only in case of extreme financial need, wherein the parent/guardian cannot maintain the account. Or in case of death of girl child for whom the account was opened. Only in case of death of account holder.
Mode of Operation Currently this scheme is available with Post offices as well as banks This scheme is available in post offices, as well as certain banks across India. Online PPF facility is also available with certain banks, like axis bank etc.
Loan Facility No Loan facility is available under this scheme Loan can be availed under this scheme; it can be availed 1 year after opening the account, and up to 5 years after account opening only.
Scheme Extension Currently this scheme offers no extension option. The account will mature 21 years from the date of opening the account. Upon maturity the account will stop earning interest, even if not encashed. Extension option is offered under this scheme. Account matures 15 years after opening, at which point the investor can choose to further extend the account for 5 years. There is no limit to the number of such extensions that can be made.

Similarity between the Schemes

Account Limit One per girl child One per Indian citizen
Transferability Account can be transferred anywhere within India, on providing proof of new residence. Account can be transferred anywhere within India, on providing proof of new residence.
Tax Benefit EEE, Investment amount, Interest earned and maturity sum all are exempt from Income tax EEE, Investment amount, Interest earned and maturity sum all are exempt from Income tax

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  • Madhu Babu

    Scheme Termination : Is it 21 years after opening the accounts or once the girl attains 21 yrs age?

    • Sagar modi

      21 years after opening of the account, or marriage of girl child whichever happens 1st.

    • Bipin

      21 years from date of opening the account.