Jul 102015

Public Provident Fund Vs Sukanya Samridhi Yojana: The Variant Facts 

The lately introduced Sukanya Samridhi Yojana (SSA) & Public Provident Fund (PPF) schemes can actually come up as the most beneficial financial plans for the purpose of saving basic fund requirements for a bright and safe future of the children. The Public Provident Fund scheme is valid for all the citizens whereas the Sukanya Samridhi Yojana can just be utilized by a girl child.

What Experts Say?

According to the verdict of financial experts, if we talk about the facility of partial withdrawal of funds and various other flexibilities, the Public provident Fund goes well in comparison to the Sukanya Samridhi Account. But still, the SSA could potentially come up with higher returns on investment. SSA comes up with quite a lucrative rate of interest together with the various beneficial aspects. Therefore, it is often compared to the Public provident Fund Scheme in terms of tax saving.

Public Provident Fund Vs Sukanya Samridhi Account PPF vs SSA

The recently launched budget has put quite a prominence on the female child in the overall growth of the nation and therefore has come up with a brilliant savings scheme with the intention of empowering the girl child in all aspects. The Indian Government has introduced Sukanya Samridhi Yojana as a part of ‘Beti Bachao, Beti Padhao’ campaign. With the assistance of this fund saving scheme for a girl child, the guardians can guarantee to have a safe and sound future of their little one.

Basic Comparison between SSA and PPF:

  • Consumer benefit – The Sukanya Samridhi account is only meant for a girl child, whereas the Public Provident Fund is meant for all.
  • Rate of Interest (2014-2015) – The Sukanya Samridhi Yojana offers 9.10 percent of interest on savings. While, the Public provident Fund provides just 8.70 percent of interest.
  • Yearly Required balance – the balance required in Sukanya Samridhi Account is 1000 rupees but, the public provident Fund requires just 500 rupees.
  • Sanction Loan – Loan sanction is allowed in Sukanya Samridhi Account but not in the Public Provident Fund.
  • Duration of investments – In Sukanya Samridhi Account the minimum duration of investment is 14 years and in public Provident Fund, the minimum investment period is 15 years.
  • Savings Maturity– the maturity period of the Sukanya Samridhi Account is 21 years. Whereas, for Public provident Fund the duration is 15 years.
  • Early withdrawal – The Sukanya Samridhi Yojana allows premature withdrawal only in some exceptional cases but not in general. If we talk about the Public provident Fund, 50 percent of accumulated amount can be withdrawn for educational or some other monitory requirements. 

Age limit for SSA and PPF:

If we talk about the Sukanya Samridhi Yojana Account, the girl child should not be more than 10 years of age. However, there is no age limit for opening a PPF account.

Targeted group of people:

The account under the Public provident Fund Scheme is permitted to be opened by all the citizens of India, without any sort of discrimination of class and gender. But, the Sukanya Samridhi Account Scheme is meant only for the minor girls. Adding more to this point, only two girl Childs from one family are allowed to go for the SSA.

Opening and operating the accounts under SSA & PPF:

The Public Provident Fund account can be opened just by the person who wants to have a savings bank account. The Sukanya Samridhi Yojana account can be opened by the guardians of the girl child and after the age of 10 the girl can herself operate that account.

Where to open an account under SSA and PPF schemes?

All the nationalized and private banks along with the post offices around the country provide the facility of opening a PPF account. Quite the similar, all the post offices and nationalized banks provide the facility of opening an SSA account but, only a few private banks those are authorized by the reserve bank of India have this facility till date.

Number of deposits allowed in these schemes:

In both the Public Provident Fund and Sukanya Samridhi Yojana Scheme, the maximum yearly contribution is restricted to 1, 50,000 rupees. In Sukanya Samridhi Yojana Account, the subscriber is required to contribute at least 1000 rupees, while in the Public Provident Fund the minimum deposit limit is only 500 rupees.            

Interest on deposits:

The interest rate in both the Sukanya Samridhi account and Public Provident Fund account is comparatively higher than the other available fund saving schemes. In case you invest your money in the Public Provident Fund (PPF) then, you will acquire 8.70 percent interest yearly (2014-2015). If we talk about the Sukanya Samridhi Account, the interest rate will be 9.10 percent for a year (2014 – 2015).

NOTE: The interest rate for the Sukanya Samridhi Yojana and Public Provident Fund gets altered every fiscal year. The interest rate for both these funds saving schemes entirely depends upon the overall condition of the economy.

Loan against monthly contributions:

In case of the Sukanya Samridhi Yojana, the government has not provided any facility of loan on the deposits. While, the individuals who have invested in the Public Provident Fund scheme are free to avail the loan amount after the completion of third year from the date of opening a PPF account.

On the whole, both these schemes launched by the government are working as the best possible options for accumulating the basic required funds for a better and financially safe future!!

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