PPF vs SSY, know their benefits and where to invest for girl child

In the realm of financial planning, the birth of a child often sparks a flurry of considerations about their future. To aid parents in this pursuit, the central government has introduced various savings schemes, aimed at fostering self-reliance among girls and women. These schemes offer substantial long-term funds through prudent investments. If you find yourself blessed with a baby girl and are eager to secure her future, two popular investment options stand out: the Public Provident Fund (PPF) and the Sukanya Samriddhi Yojana (SSY). These schemes provide avenues for potential robust returns on investment.

So, who is eligible to invest in SSY and PPF? The Sukanya Samriddhi Yojana caters exclusively to girls under the age of 10. By investing in this scheme, a girl child can amass a substantial fund, which matures when she reaches 21 years of age. Conversely, the Public Provident Fund Scheme welcomes individuals from all walks of life to invest. Moreover, it allows the opening of a PPF account for a girl child aged 10 years or above.

Let us now explore the lock-in periods associated with these schemes. The Sukanya Samriddhi Yojana allows for the opening of an account in any bank or post office, starting from the birth of a girl child until she turns 10. The investment in this scheme must continue for a maximum period of 21 years. On the other hand, the Public Provident Fund Scheme boasts an investment tenure of 15 years. Notably, the SSY account can be closed before the girl child's marriage, provided she has attained the age of 18. Conversely, the PPF account can be extended for an additional 5 years after the initial 15-year period.

Now, let us delve into the investment limits for both schemes. In a financial year, you can invest anywhere between Rs 250 to Rs 1.5 lakh in a Sukanya Samriddhi Yojana account. Meanwhile, the Public Provident Fund allows investments ranging from a minimum of Rs 500 to a maximum of Rs 1.5 lakh per year. It is worth noting that both schemes permit the opening of accounts in either post offices or banks.

Moving on to the interest rates, investing in the Sukanya Samriddhi Yojana grants you an attractive 8 percent interest, which is credited to your account on a quarterly basis. Conversely, the Public Provident Fund offers an interest rate of 7.1 percent. Considering these numbers, the Sukanya Samriddhi Yojana emerges as a potentially superior choice for securing your girl child's financial future. Furthermore, regarding withdrawals, the SSY account allows partial withdrawals after the child reaches 18 years of age, as well as upon reaching 21 years. In contrast, the PPF account permits partial withdrawals after the completion of 7 years of investment.

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