Sukanya Samriddhi Yojana better than PPF? | Sukanya Yojna Vs PPF
The SSY is more attractive than the PPF because it offers a higher interest rate. The interest rate of the SSY is also linked to the government bond yield. While the PPF offers 25 basis points higher than the yield of 10-year government bonds, the SSY will offer 75 basis points higher than the 10-year government bond yield for the previous year (which was 8.33% for 1 April, 2013 to 31 March, 2014). For 2014-15, the interest for PPF is 8.7% while the SSY offers 9.1%. Budget 2015: Is the Sukanya Samriddhi Yojana better than PPF? Though the SSY is an attractive proposition, the scheme is not open to everybody. An SSY account can be opened by the parent or guardian in the name of a girl child not more than 10 years old. Only for this year, the government has offered a grace period of one year and allowed accounts to be opened for girls who will be 11 years old by 1 December 2015. Children born before 2 December 2003 are not eligible.
How to open an SSY account:
Accounts can be opened in any post office or designated branches of PSU banks with a minimum of Rs 1,000. The maximum investment in a year is Rs 1.5 lakh and deposits can be made for 14 years. A parent can open an account for a maximum of two daughters, but the combined investment cannot exceed Rs 1.5 lakh a year. The account matures when the girl turns 21, though up to 50% of the corpus can be withdrawn after she is 18 or gets married.