Comparison between Sukanya Samriddhi Scheme (SSY) and Public Provident Fund (PPF)

For more refer to: http://sukanyasamriddhiaccount.in/

Features Sukanya Samriddhi Scheme (SSY)

Public Provident Fund (PPF)

Difference between the Schemes Eligibility Only for girl child born on or after 02nd

December 2003 For every citizen of India, irrespective of age, and gender

Rate of Interest Currently – 9.1% Linked to 10 year Government Bond Yield. Rate will be 0.75% higher than the bond yield

Currently – 8.7% Linked to 10 year Government Bond Yield. Rate will be 0.25% higher than the bond yield

Investment amount

Minimum Rs 1000/- p.a Further in multiples of Rs 100/- Maximum Rs 1,50,000/- p.a

Minimum Rs 500/- p.a Further in multiples of Rs 100/- Maximum Rs 1,50,000/- p.a

Scheme Termination

21 years after opening of the account, or marriage of girl child whichever happens 1st.

15 years from the date of account opening.

Investment Period 14 years 15 years

Premature Withdrawal

50% once only, when girl child attains age of 18 years

You could withdraw once a year, from the 7th year onwards. Such withdrawals must not exceed 50 per cent of the balance at the end of the fourth year, or 50 per cent of the balance at the end of the immediate preceding year, whichever is lower.

Premature Closure

Only in case of extreme financial need, wherein the parent/guardian cannot maintain the account. Or in case of death of girl child for whom the account was opened.

Only in case of death of account holder.

Mode of Operation

Currently this scheme is available with Post offices only and requires manually visiting the same to open the account and access other features

This scheme is available in post offices, as well as certain banks across India. Online PPF facility is also available with certain banks, like axis bank etc.

Loan Facility No Loan facility is available under this scheme

Loan can be availed under this scheme; it can be availed 1 year after opening the account, and up to 5 years after account opening only.

Scheme Extension Currently this scheme offers no extension option. The account will mature 21 years from the date of opening the account, if the girl child does not wish to withdraw the money then, she can continue to hold it in the scheme. Interest at prevailing rate will be paid on the deposit

Extension option is offered under this scheme. Account matures 15 years after opening, at which point the investor can choose to further extend the account for 5 years. There is no limit to the number of such extensions that can be made.

Similarity between the Schemes Account Limit One per girl child One per Indian citizen

Transferability Account can be transferred anywhere within India, on providing proof of new residence.

Account can be transferred anywhere within India, on providing proof of new residence.

Tax Benefit EEE, Investment amount, Interest earned and maturity sum all are exempt from Income tax

EEE, Investment amount, Interest earned and maturity sum all are exempt from Income tax