PPF vs SSY
Both Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY) are very popular saving schemes. However, Sukanya Samriddhi Yojana (SSY) is only possible for the girl child.
Though both these saving schemes are good, are you wondering which scheme would be better for your daughter?
The Interest Rates of these saving schemes are always changed by the Government every quarterly. So if you find a high interest rate today, it might not be the same by the next quarterly. However, the interest rate for Sukanya Samriddhi Yojana has always been higher than that of the Public Provident Fund.
Sukanya Samriddhi Yojana matures at 21 years of opening the savings scheme, while the Public Provident Fund can be extended as blocks of 5 years every time. You can essentially have the PPF for your whole lifetime.
Therefore, one should always save in both these schemes, and at the time of SSY’s maturity that money CANNOT be used to put in another saving scheme as the PPF’s limit of investing per year is Rs.1.5 lakh.