Difference Between Sukanya Samriddhi Account (SSA) and Public Provident Fund (PPF)
- Consumer benefited: In PPF, every citizen of India is eligible to get benefited from the scheme while in Sukanya Samriddhi account, only girl children up to 10 years of age are eligible to get benefited from the scheme.
- Institutions involved: PPF account can be opened in any financial institution including both public and private banks and post offices while in Sukanya Samriddhi account only public sector banks and post offices are involved.
- Minimum balance required in the account: In PPF, INR 500 are required to be kept as a minimum amount in the related account while in Sukanya Samriddhi account, minimum of INR 1000 are required to be kept in the account.
- Interest on the savings: In PPF, an interest rate of 8.7% per annum is sanctioned for the fiscal year 2014-15 while in Sukanya Samriddhi account, 9.2% per annum is granted for fiscal year 2014-15.
- Time periods involved: PPF account can be opened for a minimum time period of 15 years and later in blocks of 5 years while Sukanya Samriddhi account can be opened for a minimum of 14 years from the date of opening of the account.
- Maturity of the savings: PPF account matures after 15 years from the fiscal year of opening of the account while Sukanya Samriddhi account account matures after 20 years of date of opening of the account.
- Premature with-drawl: No premature with-drawl is allowed in case of PPF with an exception where the account holder has died while in case of Sukanya Samriddhi account 50% of the total amount deposited can be withdrawn in case of educational financial need or if money is needed for the marriage of the account holder.
- Sanction of the Loans: A loan can be taken on PPF account from the third year of opening of the account till sixth year while no loan is granted on Sukanya Samriddhi account account.
- Age Limit : There is no age limit in opening a PPF account. But for Sukanya Samriddhi account your girl should be less then 10 years of age.
- Limit in number of times we can deposit money in a FY :- In a FY you can make only 12 deposits in PPF. While in Sukanya Samriddhi account you can make upto 1490 deposits but the first deposit should be Rs 1000.
- Scheme Extension :- It is not possible in the case of Sukanya Samriddhi account. But for PPF after the completion of 15 years you can extend it in 5 years blocks.
- Documents Required :- In Sukanya Samriddhi account you will require an extra birth certificate of your girl child.
Difference in Tabular form
|Sukanya Samriddhi Account (SSA)||Public Provident Fund (PPF)|
|Consumer benefitted||Only for a girl child||Anybody can open it|
|Minimum balance Required Per Year||Rs 1000||Rs 500|
|Interest on the savings For the year 2014-15||9.20%||8.70%|
|Time periods involved||Minimum 14 Years||Minimum 15 years|
|Maturity of the savings||After 21 Years||After 15 Years|
|Premature with-drawl||Not allowed in normal case||Can get 50% for educational or financial needs|
|Sanction of the Loans||Allowed||Not Allowed|
Sukanya Samriddhi Account (SSA) and Public Provident Fund (PPF)
- Tax:- Premium of both them scheme can be claimed under section 80C. Interest on both the scheme is tax free. (As per the Budget 2015)
- Locking Period :- Both of these schemes have conditional locking period.
- Transferable:- Accounts in both these schemes can be transferred in various India cities.
- Multiple Accounts :- You cannot open multiple accounts in both the schemes.
- NRI :- NRIs cannot open both PPF and Sukanya Samriddhi account. But if you already have such accounts you can continue to deposit money as per the rules.
- Maximum Amount :- Both in PPF and Sukanya Samriddhi account you can deposit upto Rs 1.5 lakhs per year
- Penalty :- Rs 50 would be charged in both PPF and Sukanya Samriddhi account if you do not deposit the minimum amount.
- The interest rates are susceptible to change with each fiscal year as per government notification.
- The interest is compounded annually.
- The tax deduction is under section 80C up to a maximum amount of INR 1,50,000 as per current budget.
Which one to choose between PPF and Sukanya Samriddhi account
Well the answer is not straight forward. It all depends on your requirement. Both the schemes are pretty much similar in nature. If you want to restrict the money to be used by your Girl child only then Sukanya Samriddhi account would be beneficial for your family. Also this is one of the scheme where Interest of the money earned by you and the principle amount is directly transferred to your child.
Well I Am still confused to conclude on this and will ask my readers to comment on this topic.
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