Sukanya Samriddhi Vs. PPF – 18 Differences, 10 Similarities
Sukanya Samriddhi Yojana under the Beti Bachao Beti Padhao mission is gaining lot of interest and parents are rushing to open account for this savings scheme for their girl child. Although there are many long term savings scheme in India, public provident fund is one of them and people are distinguishing SSA with PPF since they are very similar. However there are many differences between both these schemes. So let’s checkout how Sukanya Samriddhi Account and Public Provident Fund differ:
Sukanya Samriddhi Yojana Vs. Public Provident Fund (Differences & Similarities)
| Sr.No | Feature | SSA | PPF |
|---|---|---|---|
| 1 | Objective | Financial security to the girl child, Tax deduction on deposits and assured returns | Assured return and tax benefit |
| 2 | Who is eligible to open the account | Girl child | Any resident Indian |
| 3 | Minimum entry age limit | Right from the birth of the girl child | No age limit |
| 4 | Maximum entry age limit | Only for girls aged 10 years or less from the date of birth. | No age limit |
| 5 | Interest rate (2014-2015) | 9.1% | 8.70% |
| 6 | Minimum investment (yearly) | Rs.1000 | Rs.500 |
| 7 | Maximum investment (yearly) | Rs.1,50,000 | Rs.1,50,000 |
| 8 | How many times deposits are allowed in a financial year: | No limit (monthly or yearly) | 12 deposits |
| 9 | Tenure (from the date of opening of account) | Minimum 14 years | Minimum 15 years |
| 10 | Maturity (from the date of opening of account) | 21 years | 15 years |
| 11 | Where can accounts be opened: | Post offices and banks, 28 authorized banks | Post offices, SBI & it's associates, private and nationalized banks who are permitted to collect direct taxes |
| 12 | Mandatory documents for account opening: | Account opening form, birth certificate of the girl child. Residential and ID proof of the natural parents | Account opening form, 2 passport sized photographs, Address and ID proof |
| 13 | Payment Mode | Cash/Cheque/Demand Draft | Cash/Cheque/Demand Draft & Online payment can be done at SBI and ICICI bank |
| 14 | Conditions for premature withdrawal | 50% allowed. To be used for girl's education or marriage. Condition is that girl should be 18 years at that time | Allowed only when account holder dies |
| 15 | Can we continue investing after maturity | Yes (If account is not closed, interest will be received on the balance) | Yes (Extendable in a block of 5 years) |
| 16 | Launch date | 02December2014 | 01July1968 |
| 17 | Loan Facility | Not Available | Available, from 3rd year till 6th year |
| 18 | Nomination facility | No | Yes |
Although SSA and PPF are different, there are many similar features in Sukanya samriddhi scheme and public provident fund as follows:
| Sr.No | Features | SSA & PPF |
|---|---|---|
| 1 | Type of investment | Both are long term savings instrument with zero risk as they offer guaranted tax free returns |
| 2 | Interest rate - Fixed or Floating | Both carry floating interest |
| 3 | Who decides interest rate | Central government decides interest rate every financial year before 1st April |
| 4 | Income tax benefit | Both SSA and PPF are tax exempt under section 80C. i.e. investments and returns are non-taxable |
| 5 | Is premature withdrawal possible? | Yes. Please check the conditions above |
| 7 | Can you open multiple accounts for one person | It's not possible under any of this scheme |
| 8 | If contribution is not made what is the penalty | Rs.50 |
| 9 | Type of Interest Earned | Compound interest |
| 10 | Interest earned monthly/yearly | Yearly |
Check out interest rate calculation for SSA. If you invest Rs.1,40,000 (Rs.10,000/year), you’ll earn Rs.5,26,051 on maturity which infact is a very good amount for a poor family.
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Deva
Comparison is not totally reliable i guess.
For example, PPF have nomination facility.
Vishwanath Jagdale
Hi Sir,
My daughter is now 7 years old.
If I open SSA now, i will pay for 14 years – Daughter will be 21 year old till then.
Maturity is after 21 years of opening account – Daughter is 28 years old now.
How good is this scheme helping in her higher education or marriage.?
Let say she marries at age of 25, SSA will mature instantly, and she will not get what is shown in calculations. Calculations are based on ideal situation where SSA account continues for full maturity of 21 years of account opening.
In this situation, she will get very lesser amount from what is projected.
Please explain.
Regards,
Vishwanath
Vishwanath Jagdale
But I must say, SSA is best for child with age between 0-4
Dillip
Hi if there is no nominations what about if the child dead before 21
rachit pan
kab tak pesa return hoga
Ashok Arne
About nominee facility
Ashok Arne
Good
Devbabu
Hi…,
If I pay this year Rs.1.50000, and can I pay Rs.100000 for next year ( is there any compulsory of same amount payment or for all the years or it may wary or payment)
can I pay whatever I may able to pay with in the limit.
ex: 1. year = 150000
2 year = 100000
3 year =70000
4 year = 100000
like that can I pay? or the same amount I should pay for all the years?
your’s
Dev
AllOnMoney.Com
Dear Dev, you can pay any amount within the specified limit. You can also invest monthly. Thank you.
Mohammad Amiruddin
low investment for poor family
mahesh
achha he.
mahesh
good a/c for girl baby.
Sunil Ghogre Patil
achha he