Sukanya Samriddhi Yojana is a very good scheme for girls but according to experts, we should not invest all our money in Sukanya Samriddhi Yojana. Some money should also be invested in Public Provident Fund (PPF).
How much interest you get:
On Sukanya Samriddhi Yojana, we get an interest of 7.6 percent. At the same time, the interest rate on PPF is only 7.1 percent. The interest rate is revised every four months. When one has to choose between PPF and Sukanya Samriddhi Yojana, then the investor should choose Sukanya Samriddhi Yojana, as it gives higher returns than PF. If you invest in PPF for 15 years, then it will give you a better option, but therefore a part of your earnings must be invested in PPF as well.
What is PPF:
By investing in PPF, you get a government guarantee. In this, you also get the benefit of tax exemption. Under Section 80C of the Income Tax Act, you can claim tax exemption on investments up to Rs 1.5 lakh. The maturity of the PPF account is 15 years, but it can be extended for another 5 years.
The minimum and maximum deposit limits in this account are Rs 500 and 1.50 lakhs, but keep in mind that if the PPF account is also opened in the name of the guardian, then both the accounts together will be considered as the limit of the maximum amount. It is not that 1.5 lakh can be deposited annually in both accounts.
Sukanya Samriddhi Yojana:
In this, a minimum of Rs 250 can be deposited annually. Under the scheme, a minimum of Rs 250 and a maximum of Rs 1.50 lakh can be deposited annually. The rate of interest is often high in Sukanya Samriddhi Yojana. The reason for this is that this scheme is to encourage parents like Kavita to raise money for the future of their daughter.
However, deposits can be made till the daughter turns 15. Whereas no deposit is allowed between the 16th year to 21st year. However, the interest on the account continues to accrue for 21 years. Hence, there is a restriction on investment beyond 15 years even if the money is locked. Also, 50 percent of the money can be withdrawn after 18 years. At the same time, the remaining money can be withdrawn after the girl completes 21 years of age.