When it comes to safe, long-term investment options with tax benefits, the Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY) are two of the most popular choices. But which one helps build a bigger corpus on maturity? Let’s break it down!

Public Provident Fund (PPF): Secure wealth growth with flexible deposits

Interest Rate (Effective from Jan 2024): 7.1% per annum, compounded yearly.

Deposit Limits: Minimum Rs 500, maximum Rs 1.5 lakh per year. Deposits can be made in a lump sum or multiple installments.

Who Can Open a PPF acount?

Any resident Indian (single adult) or a guardian for a minor/person of unsound mind.

Tax Benefits: Deposits qualify for Section 80C deductions, and interest earned is tax-free.

Loan & Withdrawal Rules: Loans available after one year of account opening, up to 25% of the second preceding year’s balance. Partial withdrawals are allowed after five years, up to 50% of the fourth preceding year’s balance.

Maturity & Extension: PPF matures in 15 years, with options to withdraw, extend for 5-year blocks, or continue earning interest without fresh deposits.

Premature Closure Conditions: Allowed after 5 years in cases like life-threatening diseases, higher education, or change in residency (NRI status). However, a 1% penalty applies on the interest rate.

What will be your corpus with Rs 1.2 lakh investment for 15 years in PPF?

• Total Investment: Rs 18 lakh
• Total Interest Earned: Rs 14.54 lakh
• Maturity Amount: Rs 32.54 lakh

Sukanya Samriddhi Yojana (SSY)

Interest Rate (Effective from Jan 2024): 8.2% per annum, compounded yearly.

Deposit Limits: Minimum Rs 250, maximum Rs 1.5 lakh per year. No restriction on the number of deposits per year.

Who can open a SSY acount?

A parent/guardian for a girl child below 10 years. Maximum two accounts per family (exceptions for twins/triplets).

Tax Benefits: Deposits qualify for Section 80C deductions, and interest earned is tax-free.

Account Operation & Withdrawals: The guardian manages the account until the girl turns 18. Up to 50% withdrawal allowed for higher education after she turns 18 or completes the 10th standard.

Maturity & Premature Closure: Maturity at 21 years from account opening. Can be closed after the girl turns 18 for marriage (allowed only 1 month before or 3 months after marriage). Premature closure allowed in cases of the account holder’s death, life-threatening illness, or guardian’s death.

What will be your corpus with Rs 1.2 lakh investment for 15 years in SSY?

• Total Investment: Rs 18 lakh
• Total Interest Earned: Rs 37.42 lakh
• Maturity Amount: Rs 55.42 lakh

Which scheme gives bigger corpus?

While both PPF and SSY offer tax benefits, guaranteed returns, and long-term growth, the Sukanya Samriddhi Yojana builds a significantly larger corpus due to its higher interest rate of 8.2%.

For parents investing for their daughter’s future, SSY is the better choice. However, for flexible, long-term savings accessible to all, PPF remains a reliable option. Choose based on your financial goals! 

(Disclaimer: This is an not investment advice. Do your own due diligence or consult an expert for financial planning)