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PPF Vs Sukanya Samriddhi: However, there are many small savings schemes which are giving good returns to investors. Of these, there are two such schemes which are quite popular among the middle class. These schemes are Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY).
Public Provident Fund (PPF): Popular among employed people, this scheme can be invested in for a long period. PPF earns 7.1% interest annually. At the same time, tax benefits can also be availed. Investment in this scheme can be started from Rs 500. At the same time, a maximum of Rs 1.50 lakh is deposited during a financial year. Tax benefit can be claimed on this amount under Section 80C of the Income Tax Act. You can invest in PPF for 15 years, but after maturity it can be extended in blocks of 5 years.
Sukanya Samriddhi Yojana (SSY)
Sukanya Samriddhi Yojana is a scheme of the Government of India which has been launched to secure the financial future of your girl child. Under this scheme, an account can be opened with a minimum of Rs 250 and a maximum of Rs 1.5 lakh in a year. Sukanya Samriddhi Account Scheme currently offers an interest rate of 8.2% on deposits. This account is valid for 21 years from the date of account opening, but the maximum deposit period is 15 years. This account can be opened by the guardian in the name of a girl child below 10 years of age. Only one account can be opened per girl child. At the same time, a family can open maximum two accounts.
Decision on interest rate will be taken in December
Let us tell you that the interest rates of small savings schemes like PPF and Sukanya are decided on a quarterly basis. This decision is taken by the Finance Ministry. Now the decision on the interest rate of small savings schemes for the next quarter i.e. January to March is going to be taken in the last week of December.
