SSY vs. PPF: The Government of India has launched both the Sukanya Prosperity Project (SSY) and the Public Futures Fund (PPF). The Sukanya Prosperity Scheme is one of the most popular schemes of the Central Government, which focuses on the secure future of women. At the same time, according to the existing rules of the Public Futures Fund (PPF), you can open a PPF account in the name of your minor. Tax and investment expert Jitendra Solanki says of both projects, “It depends on the investment time. If you start investing in it after the birth of a baby girl, it will prove to be a good investment.
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Do not invest all the money in the Sukanya prosperity project
According to experts we should not invest all our money in Sukanya prosperity project. A little money should also be invested in the public futures fund. We get 7.6 per cent interest on the Sukanya Prosperity Project. At the same time, the interest rate on PPF is only 7.1 per cent. The interest rate is revised every four months. When one has to choose between the PPF and the Sukanya Prosperity Plan, the investor should choose the Sukanya Prosperity Plan because it offers a higher return than the PF. If you have invested in PPF for 15 years it will give you a better option, but you should also invest a portion of your earnings in PPF.
Investing in PPF
By investing in PPF, you get a government guarantee. You also get a tax-deductible benefit. Under Section 80C of the Income Tax Act, you can claim tax deduction for investments up to Rs 1.5 lakh. The PPF account expiration is 15 years, but it can be extended to another 5 years. The minimum and maximum deposit limit in this account is Rs 500 and Rs 1.50 lakh, but keep in mind that if the PPF account is opened in the name of the guardian, both accounts together will be considered as the maximum amount limit. 1.5 lakh is not credited annually in both accounts.
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Sukanya Prosperity Project
250 per annum. Under the scheme, a minimum of Rs. Interest rates are high in the Sukanya Prosperity Scheme. Because of this, the project is to encourage parents like Kavita to raise money for their daughter’s future. However, the deposit can be kept till the daughter is 15 years old. No deposit is allowed between the 16th to the 21st year. However, the interest on the account will continue for 21 years. Therefore, even if the money is locked, there is a restriction on investment beyond 15 years. Also, 50 per cent can be withdrawn after 18 years. At the same time, the girl can withdraw the remaining money after completing 21 years.