PPF Vs SSY Where to invest? Well, there are many options available for investment in today’s time. But which of these options will be the best? There is always confusion about this. If you are thinking of investing for your daughter’s future, then today we will tell you which of PPF and Sukanya Yojana will give you more benefits?
PPF Vs SSY: If you are thinking of investing for your daughter’s bright future, then you have many options. But today we will tell you about PPF ( Public Provident Fund ) and Sukanya Samriddhi Yojana . Both these schemes are quite popular for investment. You should invest only after knowing the specialty of these two schemes and how much benefit you will get.
About PPF
PPF is a long term investment scheme. This scheme has been started by the central government. The interest rates of this scheme are fixed and it has a lock-in period of 15 years.
The special thing about this scheme is that it provides tax benefits. Scheme holders can claim tax deduction under section 80C of the Income Tax Act.
In this scheme, there is no tax on the amount received after maturity and the interest earned. Even the facility of loan and pre-mature withdrawal is available in this scheme.
About Sukanya Samriddhi Yojana
This scheme has been started especially for daughters. In this scheme, you can invest for your daughter’s education and marriage. This scheme gives more interest than PPF. The lock-in period of this scheme is 21 years. This means that you cannot withdraw money from Sukanya Account until your daughter turns 18 years old.
SSY is also a tax free scheme. In this scheme also, there is no tax on the money and interest received on maturity. The special thing about this scheme is that one has to invest in it only for 15 years.
PPF Vs SSY: In which should you invest?
If you are looking for a normal saving plan for your daughter, then you should invest in PPF. It also offers loan and pre-mature withdrawal facility. If you are looking for a financially stable plan for your daughter’s future, then SSY is the best option. In this, you can invest for your daughter’s education, marriage and overall empowerment.
Let us tell you that there is no risk in both these schemes and it is also tax free. In this, the investor gets the benefit of guaranteed returns.
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