WHat is the Difference Between PPF and Sukanya Samriddhi Yojana

source: bankofindia

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.

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.

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.

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

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.

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.

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.