PPF vs SSY Yojana : Well, there are numerous little savings programs that provide decent returns to investors. Among these, two plans are particularly popular among the middle class.
These schemes are the PPF vs SSY Yojana
Public Provident Fund (PPF): This popular scheme among employees can be invested in for the long run. PPF yields 7.1% interest every year. Tax benefits can also be obtained. This initiative allows you to invest as little as Rs 500. At the same time, a maximum of Rs 1.50 lakh is deposited each fiscal year. Section 80C of the Income Tax Act allows for the claim of tax benefits on this amount. You can invest in PPF for up to 15 years, but it can be extended in 5-year increments after maturity.
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Sukanya Samriddhi Yojana (SSY)
The Sukanya Samriddhi Yojana, also known is a government initiative launched to preserve your girl child’s financial future. An account can be opened under the initiative for a minimum of Rs 250 and a maximum of Rs 1.5 lakh every year. The Sukanya Samriddhi Account Program now pays 8.2% interest on deposits. This account is valid for 21 years from the date it was opened, however the maximum deposit duration is 15 years. A parent may open this account in the name of a girl under the age of 10. Each girl can open only 1 account. A family can only have two accounts open at the same time.
Interest rate decision will be taken in December
Let us inform you that the interest rates on modest savings schemes such as PPF and Sukanya are decided quarterly. This decision is made by the Ministry of Finance. The interest rate for modest savings programs for the upcoming quarter, January to March, will be decided in the last week of December.
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