Sukanya Samriddhi Vs. PPF – 18 Differences, 10 Similarities

March 22, 2015
in Investments

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

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

Showing 1 to 18 of 18 entries

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

Showing 1 to 9 of 9 entries

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.

13 Comments

Deva

December 30, 2015 at 1:03 pm

Comparison is not totally reliable i guess.
For example, PPF have nomination facility.

Vishwanath Jagdale

November 4, 2015 at 8:52 am

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
  
  November 4, 2015 at 9:18 am
  
  But I must say, SSA is best for child with age between 0-4
  
Dillip

November 4, 2015 at 7:26 am

Hi if there is no nominations what about if the child dead before 21

rachit pan

October 31, 2015 at 10:43 am

kab tak pesa return hoga

Ashok Arne

July 11, 2015 at 2:59 pm

About nominee facility

Ashok Arne

July 11, 2015 at 2:58 pm

Good

Devbabu

June 9, 2015 at 10:26 am

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
  
  June 9, 2015 at 6:22 pm
  
  Dear Dev, you can pay any amount within the specified limit. You can also invest monthly. Thank you.
  
Mohammad Amiruddin

June 3, 2015 at 10:01 am

low investment for poor family

mahesh

May 14, 2015 at 8:53 am

achha he.

mahesh

May 14, 2015 at 8:50 am

good a/c for girl baby.

Sunil Ghogre Patil

May 5, 2015 at 10:21 am

achha he

Sukanya Samriddhi Vs. PPF – 18 Differences, 10 Similarities

Sukanya Samriddhi Yojana Vs. Public Provident Fund (Differences & Similarities)

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13 Comments

Deva

Vishwanath Jagdale

Vishwanath Jagdale

Dillip

rachit pan

Ashok Arne

Ashok Arne

Devbabu

AllOnMoney.Com

Mohammad Amiruddin

mahesh

mahesh

Sunil Ghogre Patil

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