- PPF account is getting 7.1 percent interest
- Sukanya plan yields 7.6 percent annual interest
If you want to invest for your daughter somewhere where your money is safe and you also get excellent returns, then it would be right to invest in Kanya Samridhi Yojana or Public Provident Fund (PPF). Both these schemes are run by the central government. In these, you will also get the benefit of tax exemption. Today we are telling you about these two schemes so that you can invest in the right place according to the need.
Special things related to Sukanya Samriddhi Yojana
- This scheme can be opened anywhere in the bank or post office. Sukanya Samriddhi Yojana is currently yielding 7.6 percent interest.
- In this, an account can be opened for 250 rupees. Under Sukanya Samriddhi Yojana, an account can be opened before the age of 10 years after the birth of a girl child.
- After the girl turns 21 or the girl gets married, the account will mature and you will get the entire money with interest.
- The account can be closed after 5 years from opening. This can also be done in many circumstances, such as if there is a dangerous illness or if the account is being closed for any other reason, it can be allowed, but the interest on it will be paid according to the savings account.
- Sukanya Samriddhi Yojana accounts can be withdrawn up to 50% of the expenses for higher education of a child after the age of 18 years.
- It is necessary to give the girl’s birth certificate to open an account. Along with this, proof of identity and address of the child and guardian has to be given.
- This account can be transferred anywhere in the country, if the account holder has shifted from the original place of opening of the account to somewhere else. There is no charge for this.
- If the account is being closed before the completion of 21 years, then the account holder will have to give an affidavit that at the time of closing the account, he is not less than 18 years of age.
- A maximum of Rs 1.5 lakh can be deposited under Sukanya Samriddhi Yojana in the current financial year.
- The tax exemption can be availed under Section 80C of the Income Tax Act for applying money under Sukanya Samriddhi Yojana.
How much return will you get for investing for 15 years?
Under this scheme, if you invest Rs 1 lakh for 15 years, then you will get Rs 300,043. That is, you will get more than 2 lakh rupees interest.
Special features of PPF
- This scheme can be opened anywhere in the bank or post office. Apart from this, it can also be transferred to any bank or any post office.
- If it is opened, then it can only go from 100 rupees, but then later it is necessary to deposit 500 rupees at a time. Maximum 1.5 lakh rupees can be deposited in this account every year.
- This scheme is for 15 years, from which it cannot be withdrawn. But it can be extended for 5–5 years after 15 years.
- It cannot be closed before 15 years, but after 3 years, a loan can be taken against this account. If anyone wants, he can withdraw money from this account from 7th year under rules.
- The government reviews the interest rates every three months. These interest rates can be more or less. At present, this account is getting 7.1 percent interest.
- Tax exemption of up to Rs 1.5 lakh can be availed under 80C through investment in this scheme.
How much return will you get for investing for 15 years?
Under this scheme, if you invest Rs 1 lakh for 15 years, then you will get Rs 279,796. That is, you will get more than Rs 179,796 lakh interest.
Where to invest?
Both schemes have their own specialties and drawbacks. If your daughter’s age is less than 10 years, then it would be right to invest in Sukanya Samriddhi Yojana because from here you will get more interest than PPF. On the other hand, if your daughter is more than 10 years old, then you can invest in PPF.
Source: www.bhaskar.com
