PPF Vs Sukanya Samriddhi Scheme: In which to invest for your daughter’s future and where will you get more benefit?

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Talking about PPF, at present the interest rate on it is 7.1 percent. However, interest rate of 7.6 per cent is available in Sukanya Samriddhi.

There is more interest in Sukanya scheme but some extra benefits in PPF too.

Public Provident Fund: Public Provident Fund and Sukanya Samriddhi Yojana are both small saving schemes. The special thing is that both come under EEE category. This means investment will get the benefit of deduction. The interest is completely tax free and maturity is also tax free. Sukanya Samriddhi Yojana has been specially designed for the daughters. Anyone can invest in PPF. Now the question arises that if you have a younger daughter then where would it be better to invest.

Talking about PPF, at present the interest rate on it is 7.1 percent. In this, a minimum of Rs 500 and a maximum of Rs 1.5 lakh can be deposited in a financial year. In the name of the minor, his parents can open this account. This account matures in 15 years. After that it can be extended in blocks of 5 to 5 years.

27 lakhs will be available after 15 years

In such a situation, if suppose your daughter’s age is 5 years. If you open a PPF account in his name and deposit Rs 1 lakh every year, then after 15 years at the current rate of interest (7.1 percent), that amount will be Rs 27.12 lakh. The amount deposited in 15 years will be Rs 15 lakh. Meaning, when your daughter is 21 years old, then a total of Rs 2712139 will come in her account.

44.38 lakh rupees will be available on completion of 25 years

Suppose when your daughter is 20 years old and you do not feel the need of money for her at that time, then you can increase her by 5 years. In such a situation, on the completion of 25 years, a lump sum of Rs 44.38 lakh will be available. For this you have to deposit 20 lakh rupees.

Interest rate 7.6%

Talking about Sukanya Samriddhi Yojana, at present the interest rate on it is 7.6 percent. In this also a maximum of Rs 1.5 lakh can be deposited in a financial year. It can be opened in the name of a daughter below the age of 10 years. This scheme matures at the age of 21 years. Deposits have to be made for 15 years in this scheme. Deposits have to be made for the next 15 years from the day you open this account. This scheme matures after 21 years from the date of account opening. It can be taken out even if the daughter gets married after the age of 18 years.

Account will mature after 21 years of opening

Suppose the age of the daughter is 5 years and every year 1 lakh is deposited in her name. 15 lakh will be deposited in his account in 15 years. In such a situation, when she turns 20, she will deposit Rs 15 lakh in her name. If you open this account in 2021, then the account will mature after 21 years in 2042. Your daughter’s age will be 26 years at that time. At that time you will get 42.43 lakh rupees.

Also read, A farmer’s son waved without funds like this, from India to America, now the sting of his IT company rings

Also read, Does the bank now want to earn big money from villages?, Know why ATM inter charges are being increased

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Bhagyashree Soni
Bhagyashree Soni
Bhagyashree Soni is a software engineer with soft writing skills. She is a degree holder from the International School of Entrepreneurial Leadership. She has been a state-level badminton champion and chess player. A woman with a forthright attitude enjoys her writing passion as her chosen career. Writing in the context of feminism, social-cause and entreprenurship is her forte.
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