Can I open both PPF and SSY for my daughter?
As a matter of fact, both these scheme we are going to talk in this article are different from each other in many respects, technicalities and intent. On one hand, PPF offers a long term saving option for all Indian nationals; SSA is specifically aimed at improving the financial security of the girl child. In terms of growth of money, they both are more or less equally efficient, when it comes to investment and their tenures too are more or less the same number of years.
Public Provident Funds
A PPF account can be opened in the name of any Indian national including minors and dependents. The rate of interest which PPF offers is currently at 8.7 per cent, compounded annually. PPF account should be maintained for fifteen years to get matured amount out of the investments made towards the account. It can also be extended to indefinite period, in multiples of five years.
Sukanya Samriddhi Account
SSA, which stands for Sukanya Samriddhi Account is launched for the welfare of girl child in India and an account for all the girl children below 10 years can be opened by their parents. Their parents can get this account opened for them when they are young enough and contribute whatever they can every time during a fiscal year, to a maximum of 1.5 lakhs. There is no limit on how many times a parent can invest in Sukanya Samriddhi Account.
The money matured in SSA can be withdrawn by the account holder, i.e. the girl child when she attains an age of 21 years. She can use this account for her higher education or marriage. In both the respects, she can ensure that she has a better life and a financially more secure adulthood. SSA offers a high rate of interest, i.e. 9.1 per cent per annum.
Can you open both PPF and SSA for your daughter?
Yes, off course. PPF can be opened for any Indian national and thus your daughter at any age can be eligible for a PPF Account, even if she is a minor. On the other hand, SSA has an altogether different intent and purpose of operation and investment. It ensures girl’s safety and security for their life.
To sum it up, it is always better for your daughter and yourself to have both PPF account and Sukanya Samriddhi Account since this way you can invest up to a maximum of 3 lakhs per year and get tax benefit on the amount investment. It is always a win-win situation for the entire family and would ensure a wealthy and carefree future.
Note :- If you have opted to open PPF account for your daughter and yourself then you can deposit a maximum of rs 1.5 Lakhs only. Since your daughter is below 18 years and she would be using your PAN card and PPF has a limit of depositing rs 1.5 Lakhs per year per PAN Card.