Investing in Sukanya Samriddhi Yojana or Public Provident Fund (PPF) will be appropriate if you choose to invest for your girl child. Both are the best investment options for your daughter to gain excellent returns along with guaranteed security. Both schemes are backed by the central government and enable you to cherish the benefit of tax exemption.
But it is essential to opt for the best one when it comes to the future of your daughter. So no need to worry about, here we have illustrated these two schemes so that you seek a better knowledge for where to invest according to your need.
Sukanya Samriddhi Yojana
- Sukanya Samriddhi Yojana is a government-sponsored investment initiative for the benefit of a girl child as part of the "Beti Bachao, Beti Padhao Yojana"
- This scheme offers an interest rate of 7.6% and can be opened in any bank or post office across India.
- Under Sukanya Samriddhi Yojana, an account can be opened from a minimum amount of Rs.250 for a girl child below the age of 10
- This scheme comes with a tenure period of 21 years
- After 5 years from the date of opening, the account can be closed in case of emergency circumstances.
- One can invest up to a maximum of Rs.1.50 lakh in a financial year.
- 50% of the amount can be withdrawn from the Sukanya Samriddhi Yojana account after a girl child reaches the age of 18 years.
- This account can be transferred anywhere across the country without any charges
- An affidavit has to be submitted in case one needs to close the account before the completion of 21 years
- One needs to invest the minimum amount every year for up to 15 years from the date of account opening to earn interest until maturity.
- One can gain tax benefits under Section 80C for investing up to Rs. 1.5 lakh annually
Public Provident Fund (PPF)
- Under this scheme, an account can be opened from a minimum amount of Rs.100 up to a maximum of Rs.1.5 lakh per annum
- The account is transferable too across any bank or post office in India
- The scheme comes with a tenure of 15 years and one can also avail for a loan against the scheme after completion of 3 years
- The tenure of the scheme can also be extended in blocks of 5 years at a time after 15 years
- Partial withdrawal is also available from the 7th fiscal year
- The scheme comes with an interest rate of 7.1 per cent
- Contribution up to Rs 1.5 lakh per annum to PPF account is eligible for tax exemption under section 80C of Income Tax Act
- The nominees / legal heirs can claim the proceeds of PPF account in case of death of the PPF account holder
Both schemes have their own merits and demerits. Sukanya Samriddhi Yojana will be an ideal option if your daughter's age is less than 10 years old, on the other hand, it is better to invest in PPF if your daughter is more than 10 years old.