Side by side
| Sukanya Samriddhi | PPF | |
|---|---|---|
| Interest (Oct–Dec 2026) | 8.2% | 7.1% |
| Who | Girl child under 10 | Any resident individual |
| Yearly deposit | ₹250 – ₹1.5 lakh | ₹500 – ₹1.5 lakh |
| Deposit period | 15 years | 15 years (extendable in 5-year blocks) |
| Matures | 21 years from opening | 15 years (plus extensions) |
| Money belongs to | Your daughter | You |
| Withdrawals | 50% at 18 for education | Partial from year 7; loans from year 3 |
| Tax | EEE | EEE |
The money difference
₹1,50,000 a year for 15 years:
| Value after 15 years | Value at the end | |
|---|---|---|
| SSY at 8.2% | ₹44,75,989 | ₹71,82,119 (year 21) |
| PPF at 7.1% | ₹40,68,209 | ₹40,68,209 (year 15) |
Over the same 15 years SSY ends up about ₹4,07,780 ahead, and it then keeps compounding for six more years without new deposits.
But the 80C limit is shared
In the old regime both count towards the same ₹1.5 lakh 80C limit. If you can only spare ₹1.5 lakh a year in total, SSY gives the higher tax-free return for a daughter’s goals; PPF stays useful for your own retirement and for flexibility.
When PPF is the better fit
- You might need the money for something other than your daughter’s education or marriage.
- Your daughter is already 10 or older (SSY can no longer be opened).
- You want to keep the account in your own name.
Many families do both: SSY for the daughter, PPF for the parents. The pre-filled calculator shows SSY at ₹1.5 lakh a year; switch the rate to 7.1% to see roughly what the same deposits would do at the PPF rate.
A simple way to decide
Ask three questions. Is this money definitely for your daughter’s education or marriage? If yes, SSY’s higher rate makes it the natural first choice. Might you need the money for something else, or before she turns 18? Then PPF’s partial withdrawals and loans give more breathing room. Are you looking beyond 15 years for your own retirement? PPF can be extended indefinitely in 5-year blocks, SSY cannot.
Both rates are reset every quarter and could change, and both are safe because they are backed by the Government of India. If your budget allows, a common pattern is to fill SSY first for the daughter’s goal and then use PPF and EPF for the parents’ own long-term savings.
Key Sukanya Samriddhi figures (checked 5 November 2026)
| Item | Figure |
|---|---|
| Interest rate (Oct–Dec 2026) | 8.2%, compounded yearly |
| Deposit limits | ₹250 – ₹1,50,000 per financial year |
| Deposit period | 15 years from opening |
| Maturity | 21 years from opening |
| Tax | EEE — interest and maturity tax-free |
FAQ
Is SSY better than PPF?
For a daughter’s education or marriage fund, usually yes: 8.2% vs 7.1%, both tax-free. PPF is more flexible and can be used for any goal.
How much more does SSY give than PPF on ₹1.5 lakh a year?
After 15 years about ₹44,75,989 vs ₹40,68,209 — roughly ₹4,07,780 more, before SSY’s extra 6 years of interest.
Can I invest in both SSY and PPF?
Yes. In the old regime they share the ₹1.5 lakh 80C limit, but you can deposit in both.
Sources (checked 5 November 2026): Ministry of Finance small savings rates for October–December 2026, announced 30 September 2026 (SSY 8.2%; reported by Studycafe, Zee News and Free Press Journal); Sukanya Samriddhi Account Scheme, 2019 (G.S.R. 914(E)) and India Post SSA rules; Income-tax Act provisions for 80C and tax-free SSA interest.