Sukanya Samriddhi vs PPF for girl child
While there are lot of similarities between both the accounts in terms of taxation and deposits, the differences are as below.
Positives for PPF:
- Loan facility available from third financial year of opening PPF. No loan facility in SSA (Sukanya Samruddhi Account).
- Partial withdrawal permissible in PPF every year from 7th financial year. In SSA, 50% withdrawal possible after girl child attains 18 years and full withdrawal possible after she attains 21 years.
- The maturity period in PPF is 15 years (can be extended in block of 5 years later) while in SSA till the girl attains 18 years, you can’t touch.
So why SSA?
The seemingly disadvantage of inflexibility in SSA is a disguised advantage. It ensures financial discipline. It is like, this money is for your princess and you don’t have rights to disturb it for other financial challenges.
For accepting this financial discipline, you will be awarded around 0.5% extra interest .
Go for SSA.
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