Difference of Sukanya Samriddhi vs PPF Account

Launched in the year 2015, the Sukanya Samriddhi account is one of the more applicable instruments for saving for one’s children for future needs. Apart from the Sukanya Samriddhi account, the Public Provident Fund is yet another popular savings scheme doing the rounds in the market.

However, there are certain marked differences between both the schemes. One of the glaring differences is that while the Public Provident Fund account can be started by anyone, the Sukanya Samriddhi account can be availed of by only the girl child.

According to experts, it is important to note, both Sukanya Samriddhi account and the Public Provident Fund scheme are relevant in their own ways. However, it is imperative to note that PPF has a higher rate of liquidity and other flexibilities compared to a Sukanya Samriddhi account.

Public Provident Fund Account

So far as PPF account details are concerned, the following points need to be kept in mind:

• According to contemporary expertise, it is imperative to note that PPF has a higher rate of liquidity and one is one of the more popular instruments of saving.
• Another very important thing to note is that PPF account can be started by anyone in anyone’s name.
• Apart from the aforesaid points, it is important to remember that any particular investor can start a PPF account in the name of a minor. However, it is equally imperative to keep in mind that a maximum of Rs. 1.5 lakhs can be deposited annually.
• So far as the initial amount is concerned, it is important to remember that in order to open a PPF account it is mandatory to deposit an initial sum of Rs. 100.
• Needless to say, the PPF account can be started either in post offices or in banks.
• A very important thing to remember is that a charge of Rupees fifty will be levied in the case of the PPF account if the minimal contribution is not made annually.
• As mentioned earlier, the highest deposit in a PPF account is INR 1.5 lakhs. Important to note: the concerned deposits can be made either in lump sums or in twelve installments through the financial year.
• The period of maturity of a PPF account is fifteen years but it can be extended in block of 5 years.
• Deduction of up to Rs. 1.5 lakhs is allowed under 80C for the PPF account.
• Partial withdrawal is permitted annually from the 7^th financial year of opening the PPF account.
• Loan facility is available from the 3^rd financial year of opening the PPF account.

Sukanya Samriddhi Account

So far as the Sukanya Samriddhi account is concerned, the following points are essential:

• A very important thing to note is that the Sukanya Samriddhi account can be started only in the girl child’sname (one account per child).
• However, it is important to note that parents may open the account for a maximum of two children.
• It is equally imperative to keep in mind that a maximum of Rs. 1.5 lakhs can be deposited annually.
• So far as the initial amount is concerned, it is important to remember that in order to open a Sukanya Samriddhi account it is mandatory to deposit an initial sum of Rs. 1000.
• Needless to say, the Sukanya Samriddhi account can be started either in post offices or in banks.
• A very important thing to remember is that a charge of Rupees fifty will be levied in the case of the Sukanya Samriddhi account if the minimal contribution is not made every year.
• As mentioned earlier, the highest deposit in a Sukanya Samriddhi account is INR 1.5 lakhs. Also, it is important to remember that there is apparently no limit on the number of deposits either in a month or in a year.
• So far as the maturity period of a Sukanya Samriddhi account, it can shut after the particular girl child has completed the age of 21.
• However, it is imperative to keep in mind that if the account isn’t shut after the girl attains maturity the balance will remainand keep earning interest.
• Deduction of up to Rs. 1.5 lakhs is allowed under 80C of the Income Tax Act of India for the Sukanya Samriddhi account.
• So far as the Sukanya Samriddhi account is concerned, it is important to note that up to fifty percent of the amount accumulated can be withdrawn after the girl child has attained the age of 18.
• The full amount can be withdrawn after the girl child has attained the age of 21.
• Loan facility is not available in case of the Sukanya Samriddhi account.
• So far as the interest rate is concerned, it is important to underscore the fact that the interest rate on the Sukanya Samriddhi account isn’t fixed.

These are the difference between Sukanya Samriddhi and PPF account.