Investment Tips: Sukanya Samriddhi or PPF? Where is better to invest for 15 years...

Public Provident Fund and Sukanya Samriddhi Yojana are both government schemes and have some similarities. Both schemes promote long-term disciplined investment. These schemes can be started in any post office in the country.

Both schemes allow you to invest your small savings at regular intervals, through which you can create a large corpus. In both, you have to invest for 15 years. Now the question is that if you want to invest for 15 years, then in which scheme should you invest? For this, you can decide by looking at the calculation.

Safety and return guaranteed.

Both the Public Provident Fund and Sukanya Samriddhi Yojana are small savings schemes of the post office. Due to this, there is no tension about safety in them. Both are fixed-income schemes, in which returns are given as per the interest fixed by the Central Government. Keep in mind that the Central Government reviews the Small Savings Scheme every 3 months and determines the interest rate. Currently, the Public Provident Fund is giving 7.1% interest per annum and Sukanya Samriddhi Yojana is giving 8.2% interest per annum.

Both schemes are tax-free.

Sukanya Samriddhi Yojana and PPF, both schemes are tax free. That means Triple E (EEE) tax benefit is available to them. That means tax exemption is available at three different levels. First of all, under Section 80C of the Income Tax Act, the exemption is available on annual investments up to Rs 1.50 lakh. After this, there is no tax on the interest received on these. And finally, the entire amount received on maturity is tax-free.

Similar features of PPF and SSY
Both schemes promote long-term investment, in which big financial targets can be achieved by small savings.

Both schemes have the facility to deposit up to Rs 1.50 lakh during a financial year. This investment can also be done every month, which should be a maximum of Rs 1.50 lakh in a year.

In PPF, money has to be deposited for 15 years, the maturity period is also 15 years. In Sukanya Samriddhi Yojana also, investment has to be made for 15 years only, although the account matures at the age of 21 years.

SSY gives the benefit of maturity after 6 years

It is clear from the calculation that in both schemes, as an investor, you can deposit a maximum of Rs 22.50 lakh in 15 years. The PPF scheme matures only after 15 years and on maturity you get around Rs 40.68 lakh. That is, the benefit of interest in this is around Rs 18.18 lakh.

In Sukanya Samriddhi Yojana, you can deposit a maximum of Rs 22.50 lakh during 15 years, just like PPF. But the scheme matures after 21 years, that is, 6 years later than PPF, so the benefit increases due to the addition of compounding in it.

In Sukanya Samriddhi Yojana, if you invest within the maximum limit, you get a fund of Rs 69.80 lakh after maturity, that is, the benefit of interest is more than Rs 47.30 lakh. It is also important to mention here that the Sukanya Samriddhi Yojana account can be opened only for girls below 10 years of age.