PPF Vs SSY: If you want to raise a huge fund for your daughter and are confused about PPF and SSY, then your confusion can be cleared here. Understand which scheme can be better for your daughter through calculation.
PPF Vs SSY: Be it a son or a daughter, everyone loves children. But daughters have to be married and sent away, so with their birth, worries like education and marriage of daughters start bothering a father. Parents start investing to meet all the expenses of daughters from childhood itself. If you want to save a lot of money for your daughter, then you should invest in a long term scheme.
Sukanya Samriddhi Scheme is run by the government especially for daughters. This scheme has been started keeping in mind the future of the daughter. PPF is also a long term scheme in which investors can invest in the name of the child and can raise a large fund. PPF matures in 15 years and SSY after 21 years. In such a situation, which scheme would be better to choose for the daughter? If you are confused about this, then know about your profit here.
SSY
In Sukanya Samriddhi Yojana, you have to invest only for 15 years, but you get the maturity amount after 21 years. Currently, 8.2 percent interest is being given in this scheme. Any father can deposit a minimum of 250 rupees annually and a maximum of 1.5 lakh rupees annually in this scheme. If you invest 5000 rupees every month in this scheme, then you will deposit a total of 9 lakh rupees in 15 years. Calculating according to the current interest rate, you will get an interest of Rs 18,71,031 and the maturity amount will be Rs 27,71,031.
PPF
Anyone can deposit a minimum of Rs 500 per year and a maximum of Rs 1.5 lakh per year in Public Provident Fund. It is paying an interest rate of 7.1 percent. This scheme matures after 15 years, but to get more benefit from it, you can also extend this scheme in blocks of 5 years each. If you invest Rs 5000 every month in PPF, you will deposit a total of Rs 9 lakh in 15 years.
Calculating according to the current interest rate, the total interest on investment in 15 years will be Rs 7,27,284. The maturity amount will be Rs 16,27,284. If you extend it for 5 years and continue investing for 5 more years, then your total investment in 20 years will be Rs 12,00,000. The interest on this will be Rs 14,63,315 and the maturity amount after 20 years will be Rs 26,63,315.
Which scheme is better to choose
If you see it this way, your investment in Sukanya Samriddhi Scheme is less and the return is more. Whereas the return in PPF scheme is less. The investment is increasing on extension, but the return is still not as much as Sukanya Samriddhi. In such a situation, if you can wait for 21 years, then it will be better to invest in Sukanya Samriddhi for the daughter. But if you cannot wait for a long time, then you can choose the 15-year PPF scheme. Tax benefits are available on both schemes. You can choose according to your convenience and comfort.
