PPF, Sukanya Samriddhi, Post Office FD, which government scheme is best for investment? Know interest rates, benefits

As Indian citizens seek secure investment options, three government-backed schemes stand out: the Sukanya Samriddhi Account, the Post Office Savings Account, and the Public Provident Fund (PPF). Each of these schemes has its own benefits and different interest rates, so potential investors must compare them before deciding.

A public provident fund (PPF) is a long-term savings scheme that allows you to invest in a flexible manner, from a lump sum deposit or in instalments up to 12 times a year. Currently, PPF offers an 8.70% per annum compounded annually interest rate. Notably, the interest earned is tax-free, which makes it a popular choice for many savers. A PPF account can be opened by individuals with a minimum deposit of Rs 500 and a maximum of Rs 1.5 lakh per financial year.

Sukanya Samriddhi Account is a special account meant for the financial empowerment of girl children. The account must be opened by a guardian before the girl is 10 years old under this scheme. This account has a higher interest rate than PPF and is currently 9.2% per annum (compounded annually). The minimum annual deposit is Rs 1,000, and the maximum deposit in a year is Rs 1.5 lakh. This account matures after 21 years, or when the girl child gets married after attaining 18 years.

On the other hand, the Post Office Savings Account is a more simple way to save, but with much lower returns. This scheme has an interest rate of 4% per annum and is compounded annually too. It is easy to access funds, can be opened with a minimum deposit of Rs500, but does not offer the same returns as PPF or Sukanya Samriddhi accounts.

While all three options are secure and backed by the government, the Sukanya Samriddhi Account offers the highest interest rate at 9.2%, followed by PPF at 8.70%, and finally the Post Office Savings Account at 4%. Investors should consider their financial goals and timelines when choosing between these schemes to maximise their savings effectively.