PPF vs. SSY Which one is good for you? Both schemes are backed by the Government of India.

In addition, SSY is only for girls, while PPF can be opened by anyone.

If you are looking to save money for your child’s marriage or higher education, these two products will come into our minds.

In addition, both products have similar tax benefits.

Let’s try to dig more to find more answers about PPF vs. SSSY.

PPF vs. SSY: Which is good for your children? …

Let’s compare both the products for features and benefits they provide to make informed investment decisions.

Taxation for both the products…

Both products carry the same 80c tax benefit.

In addition, these 80 c tax benefits are there under the new tax regime.

Moreover, whatever the interest earned during the investment period is, it is completely tax-free for both the schemes.

Finally, the maturity amounts for these two schemes are also tax-free.

Hence, these two products can be called Exempt-Exempt and Exempt (EEE) schemes.

Maturity in PPF and SSY…

In ppf, you can withdraw after completion of 15 years; you can continue contributing and can hold the investment without contribution also.

But when it comes to sukanya samridhi yojana, the rules are different.

In addition, SSY will mature after 21 years or when your daughter gets married after 18 years, whichever is earlier.

Moreover, you need to contribute up to 15 years and 1.5 lakh per year only in this SSY scheme.

After 15 years, there is no need to contribute, and you still get interest till maturity.

Let’s assume you opened this scheme for your girl child at age 4 years.

Here, you can contribute for 15 years, i.e., till she attains the age of 19.

After that, you are not allowed to contribute to this scheme.

However, this scheme will mature when she attains age 25, i.e., after the completion of the 21-year term.

Here, the important point is that you can withdraw money not only when she attains 18 years; if she has completed the 10th standard, withdrawal is possible before 18 years also.

i.e., 18 years of age or completion of 10th standard, whichever is earlier for withdrawal purposes.

Interest Rate…

If you see the historical interest rate, SSY has given higher interest rates compared to PPF.

In addition, the current ppf rate is 7.1% and the ssy rate of interest is 8.2%.

Suitability of ppf and ssy…

I agree that both of these schemes are tax-free and backed by the Government of India.

In addition, both schemes have restrictions on withdrawals.

Moreover, you should not forget about silent killer inflation while choosing your investments for your children’s future.

In addition, you should treat these two products as debt products in your overall portfolio.

and chose equity mutual funds also based on risk profile.

If your children need money before 15 years, then PPF is not the idle one to invest.

As ppf mature only after 15 years.

In addition, it allows only some portion as partial withdrawal, and conditions apply.

When it comes to SSY, it is meant for girls only.

In addition, this scheme cannot be extended beyond girl marriage and education, like in the case of ppf.

Here also, choose the asset allocation wisely based on your needs, keeping liquidity in mind.

 

Conclusion…

Don’t just invest in these products blindly. As they are tax-free and government products.

Access product suitability for you and then go ahead.

Read about: How do call girls need to save money?”…

Also, download the ssy exel calculator here.

and read How much life insurance you need to take?

Also read about the NPS Vatsalya Scheme…

and read about Sukanya Sammridhi Yojan—5 interesting facts.

Also read the article about the Public Provident Fund: All You Need to Know…