PPF vs SSY vs SCSS vs NSC: While Public Provident Fund (PPF) scheme is famous because of ‘EEE’ tax-saving benefits and high returns, many other tax-saving Post Office schemes are more popular than PPF in terms of deposits or collections, according to the Finance Ministry data.
The data recently shared by the Ministry of Finance in Parliament shows that compared to schemes like Senior Citizens Savings Scheme (SCSS), National Savings Certificate (NSC) and Sukanya Samriddhi Yojana (SSY), PPF had lower gross and net collections in 2021-22.
The Gross collection for PPF in 2021-22 was Rs 21,302 crore. While SCSS had a Gross collection of Rs 32,507 crore. Both NSC and SSY had Gross collections of Rs 40,264 crore and Rs 24,060 crore respectively.
In terms of net collections also, PPF ranked lower than NSC, SCSS and SSY in 2021-22. NSC, SCSS and SSY had net collections of over Rs 19,000 crores during the period while net collection under the PPF scheme was around Rs 13,000 crore.
In 2021-22, the total net collection under NSC was Rs 19,619.86. For SCSS, the total net collection was Rs 22,129 crore and Rs 23,486 crore for SSY. The net collection under PPF was just Rs 12,846 crore.
All these schemes have different objectives and features. While SSY is aimed at benefitting the girl child, SCSS caters to senior citizens. PPF is a long-term small savings and investment product that one can use to meet certain future financial goals or generate a corpus for retirement. NSC can be used by individuals as an investment tool for 5 years and also enjoy tax benefits on deposits under Section 80C.
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The returns under all these schemes are guaranteed. Hence, they are the preferred investment options for individuals who can not afford to lose their hard-earned money. These schemes also offer better interest rates than bank or post office fixed deposits.