PPF vs Sukanya Samriddhi Scheme: Which can build a larger corpus at maturity with an annual investment of Rs 1.5 lakh for 15 years?
Sukanya Samriddhi Scheme vs PPF: Everyone wants to secure a stable financial future but is often confused about where to invest. If you are looking for investment ideas, you can choose between Sukanya Samriddhi Yojana (SSY) and Public Provident Fund (PPF). These two are among the most popular and reliable investment options in India. Both offer attractive interest rates, tax benefits, and long-term growth, but the question arises: which one creates a bigger corpus with an annual investment of Rs 1.5 lakh for 15 years? Here is a detailed comparison of both schemes to help you make an informed investment decision.
Sukanya Samriddhi Yojana (SSY)
Designed to secure the future of the girl child, the Sukanya Samriddhi Yojana allows a minimum deposit of Rs 250 and a maximum of Rs 1.5 lakh in a financial year. An account can be opened only in the name of a girl child, up to 10 years of age. It provides tax benefits under Section 80C, and the interest is also tax free under Section 10.
The account can be maintained at post offices or authorized banks and transfers across India.
It should be noted that deposits can be made for a maximum period of 15 years from the date of account opening, while the maturity period is 21 years. Withdrawals are allowed for higher education expenses, and early closure is allowed after the account holder’s marriage is 18 years or older.
Maturity Amount in 21 years
Over a period of 21 years, an investment of Rs 1.5 lakh per annum for 15 years would yield a maturity value of Rs 69,27,578, with a total interest earned of Rs 46,77,578.
Maturity value in 21 years: Rs 69,27,578
Total investment: Rs 22,50,000
Total interest earned: Rs 46,77,578
Public Provident Fund (PPF)
Public Provident Fund, a flexible plan, allows lump sum deposit or 12 installments. Minimum deposit is Rs 500 per year.
PPF accounts cannot be held jointly, but nominations are allowed during and after account opening. It has a maturity period of 15 years, with an option to extend for 5 years at a time.
Like SSY, PPF offers tax benefits under Section 80C, and the profit earned is also tax-free. Withdrawal is allowed after the 7th financial year.
Maturity Amount in 15 years
If you invest Rs 1.5 lakh per year for 15 years, the maturity value after 15 years will be Rs 40,68,209, earning a total interest of Rs 18,18,209.
Comparison and conclusion
Both SSY and PPF are strong long-term investment options, but for an annual investment of Rs 1.5 lakh over 15 years, SSY generates a larger growth corpus. However, the choice between SSY and PPF should depend on your specific financial goals, eligibility, and withdrawal period.
