The most popular savings schemes among the small savings schemes of the Government of India run through the Indian Postal Department, i.e. India Post, are Sukanya Samriddhi Yojana (SSA) and Public Provident Fund (PPF). Both the schemes promote disciplined investment by giving good returns, and apart from similarities like investment and investment period, there are some similarities in both these schemes. Apart from this, the information we want to give today is that by investing the same amount in the same period in the Sukanya Samriddhi Yojana account opened for a daughter below 10 years of age, you can get more than two and a half times the return.

Investment in PPF and SSA will be equal...

Through these two schemes, which can be started in any post office or bank in the country, you can get a large fund by making regular fixed investments, and for this, it is not necessary to wait till retirement. Investment in both PPF and SSA has to be made for 15 years, and the maximum annual limit of investment is also the same, i.e. ₹1,50,000. So, if you invest regularly for 15 years, then the total investment in both schemes can be ₹22,50,000.

Government of India guarantees the safety of investment in PPF and SSA...

There can be no tension about the safety of investment in PPF and SSA, which are small savings schemes guaranteed by the Government of India, and in both these fixed-income schemes, interest is paid as per the interest rate fixed by the Central Government every quarter. At present, 7.1 percent annual interest is being paid on the PPF account and 8.2 percent annual interest is being paid on the SSA account.

PPF and SSA are EEE category schemes...

Investment in both PPF and SSA schemes saves income tax every year, the interest deposited in the account every year is not taxable, and finally, no tax has to be paid on the amount received on maturity - that is, both schemes are EEE category schemes.

The only difference between PPF and SSA is maturity...

Both small savings schemes promote long-term investment and create a good fund for future needs. A maximum of ₹1,50,000 can be invested every year in PPF and SSA, and investment has to be made continuously for 15 years in both. However, investment in both schemes can also be made on a monthly basis, but in that case, the interest earned reduces a bit. The only difference is that after investing for 15 years in PPF, maturity also happens in 15 years only, but after investing for 15 years in SSA, one has to wait for six years, because maturity happens in 21 years.

You get the benefit of compounding if maturity happens late...

But in these six years, your fund grows very fast, because not only the income of compounding interest keeps coming for six years, but the interest in SSA is also more than in PPF. Now you see - by investing continuously for 15 years in PPF account, you deposited ₹22,50,000, on which at the time of maturity, you will get a total of ₹18,18,209 as interest, whereas by investing continuously for 15 years in SSA also, ₹22,50,000 will be deposited, but due to maturity at 21 years and interest rate being 8.2 percent, at the time of maturity, you will get a total of ₹49,32,119 as interest, which is more than two and a half times the interest of PPF.