Source: All on Money
Sukanya
Samriddhi Yojana under the Beti Bachao Beti Padhao mission is gaining lot of
interest and parents are rushing to open account for this savings scheme for
their girl child. Although there are many long term savings scheme in India,
public provident fund is one of them and people are distinguishing SSA with PPF
since they are very similar. However there are many differences between both
these schemes. So let’s checkout how Sukanya Samriddhi Account and Public
Provident Fund differ:
Sukanya Samriddhi Yojana Vs. Public Provident Fund
(Differences & Similarities)
SR.NO
|
FEATURE
|
SSA
|
PPF
|
1
|
Objective
|
Financial
security to the girl child, Tax deduction on deposits and assured returns
|
Assured
return and tax benefit
|
2
|
Who
is eligible to open the account
|
Girl
child
|
Any
resident Indian
|
3
|
Minimum
entry age limit
|
Right
from the birth of the girl child
|
No
age limit
|
4
|
Maximum
entry age limit
|
Only
for girls aged 10 years or less from the date of birth.
|
No
age limit
|
5
|
Interest
rate (2014-2015)
|
9.1%
|
8.70%
|
6
|
Minimum
investment (yearly)
|
Rs.1000
|
Rs.500
|
7
|
Maximum
investment (yearly)
|
Rs.1,50,000
|
Rs.1,50,000
|
8
|
How
many times deposits are allowed in a financial year:
|
No
limit (monthly or
yearly) |
12
deposits
|
9
|
Tenure
(from the date of opening of account)
|
Minimum
14 years
|
Minimum
15 years
|
10
|
Maturity
(from the date of opening of account)
|
21
years
|
15
years
|
11
|
Where
can accounts be opened:
|
Post
offices and banks, 28 authorized banks
|
Post
offices, SBI & it's associates, private and nationalized banks who are
permitted to collect direct taxes |
12
|
Mandatory
documents for account opening:
|
Account
opening form, birth certificate of the girl child. Residential and ID proof
of the natural
parents |
Account
opening form, 2 passport sized photographs, Address and ID proof
|
13
|
Payment
Mode
|
Cash/Cheque/Demand
Draft
|
Cash/Cheque/Demand
Draft & Online
payment can be done at SBI and ICICI bank |
14
|
Conditions
for premature withdrawal
|
50%
allowed. To be used for girl's education or marriage. Condition is that girl
should be 18 years at that time
|
Allowed
only when account holder dies
|
15
|
Can
we continue investing after maturity
|
Yes
(If account is not closed, interest will be received on the balance)
|
Yes
(Extendable in a block of 5 years)
|
16
|
Launch
date
|
02December2014
|
01July1968
|
17
|
Loan
Facility
|
Not
Available
|
Available,
from 3rd year till 6th year
|
18
|
Nomination
facility
|
No
|
Yes
|
Although
SSA and PPF are different, there are many similar features in Sukanya samriddhi
scheme and public provident fund as follows:
SR.NO
|
FEATURES
|
SSA & PPF
|
1
|
Type
of investment
|
Both
are long term savings instrument with zero risk as
they offer guaranted tax free returns |
2
|
Interest
rate - Fixed or Floating
|
Both
carry floating interest
|
3
|
Who
decides interest rate
|
Central
government decides interest rate every financial year before 1st April
|
4
|
Income
tax benefit
|
Both
SSA and PPF are tax exempt under section 80C. i.e.
investments and returns are non-taxable |
5
|
Is
premature withdrawal possible?
|
Yes.
Please check the conditions above
|
7
|
Can
you open multiple accounts for one person
|
It's
not possible under any of this scheme
|
8
|
If
contribution is not made what is the penalty
|
Rs.50
|
9
|
Type
of Interest Earned
|
Compound
interest
|
10
|
Interest
earned monthly/yearly
|
Yearly
|
Check
out interest rate calculation for SSA. If you invest Rs.1,40,000
(Rs.10,000/year), you’ll earn Rs.5,26,051 on maturity which infact is a very
good amount for a poor family.
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