look news india
PPF vs SSY: To take care of the responsibilities of the daughter's education as well as marriage, an investment plan should be made for the daughter from childhood itself. So that all the expenses can be met easily. If you want to accumulate a large fund for your daughter, then you can invest in a long-term plan.
Know how much investment in which scheme
In Sukanya Samriddhi Yojana, you have to invest only for 15 years. But the maturity amount is received after 21 years. Currently, this scheme gives 8.2 percent interest. In this scheme, any father can contribute a minimum of Rs. 250 and a maximum of Rs. 1.5 lakh annually. If you invest Rs. 5000 in this scheme, then in 15 years a total of Rs. 9 lakh will be deposited. According to the current interest rate, Rs. 18,71,031, and at the end of maturity a total of Rs. 2771031 will be available.
PPF
Annual minimum amount of Rs. 500 and maximum amount of Rs. 1.5 lakh can be deposited. In which interest is being received at the rate of 7.1 percent. This scheme matures at the end of 15 years. However, to get more interest you can renew it in blocks of 5-5 years. In PPF if you contribute Rs. 5000, then in 15 years a total of Rs. 9 lakh will have to be deposited.
As per the current interest rate, the total interest on the investment in 15 years will be Rs. 727284. Which will help in accumulating a total fund of Rs. 1627284 at the end of maturity. If you extend it for another five years, then at the end of 20 years, on an investment of Rs. 12,00,000, you can double the capital of Rs. 2663315.
Which scheme to choose?
In Sukanya Samriddhi Yojana, your investment is less and the returns are more, whereas in PPF the returns are less. On extension of the scheme, you will have to invest for five more years. But the returns are not as rich as Sukanya Samriddhi. That is, if you want to invest for 21 years, then it would be best to invest in Sukanya Samriddhi Yojana. You get tax benefits in both the schemes.