Sukanya Samriddhi Yojana and Public Provident Fund is a scheme launched by the Government of India. The most important thing about Sukanya Samriddhi Yojana is that it has been prepared keeping in mind the girls. Let us know the important things related to both the schemes-
Is it right to invest all the money in Sukanya Samriddhi Yojana?
According to experts we should not invest all our money in Sukanya Samriddhi Yojana. Some money should also be invested in Public Provident Fund. We get 7.6 percent interest on Sukanya Samriddhi Yojana. At the same time, the interest rate on PPF is only 7.1 percent. The interest rate is revised every four months. When one has to choose between PPF and Sukanya Samriddhi Yojana, then the investor should choose Sukanya Samriddhi Yojana, as it gives higher returns than PF. If you invest in PPF for 15 years, then it will give you a better option, but therefore a part of your earnings must be invested in PPF as well.
Public Provident Fund
By investing in PPF, you get a government guarantee. In this you also get the benefit of tax exemption. Under Section 80C of the Income Tax Act, you can claim tax exemption on investments up to Rs 1.5 lakh. The maturity of PPF account is 15 years, but it can be extended for another 5 years. The minimum and maximum deposit limit in this account is Rs 500 and 1.50 lakh, but keep in mind that if the PPF account is also opened in the name of the guardian, then both the accounts together will be considered as the maximum amount limit. It is not that 1.5 lakh can be deposited annually in both the accounts.
Sukanya Samriddhi Yojana
In this, a minimum of Rs 250 can be deposited annually. Under the scheme, a minimum amount of Rs 250 and a maximum of Rs 1.50 lakh can be deposited annually. The rate of interest is often high in Sukanya Samriddhi Yojana. The reason for this is that this scheme is to encourage parents like Kavita to raise money for the future of their daughter. However, the deposit can be made till the daughter turns 15 years old. No deposit is allowed between 16th year to 21st year. However, the interest on the account continues to accrue for 21 years. Hence, there is a restriction on investment beyond 15 years even if the money is locked. Also, 50 percent of the money can be withdrawn after 18 years. At the same time, the remaining money can be withdrawn after the girl completes 21 years of age.
