PPF vs. Sukanya Samriddhi Yojana: Which Is Right for You?

Public Provident Fund (PPF)

• Who can open one: any Indian resident individual (one account per person; a parent can also open one on behalf of a minor).
• Lock-in: 15 years, with partial withdrawals allowed from a specific year onward, and loan-against-PPF available in certain years of the tenure.
• Contribution limits: a minimum yearly deposit to keep the account active, up to a maximum of ₹1.5 lakh/year.
• Current interest rate: 7.1% per annum (unchanged since April 2020, reviewed quarterly by the government).
• Tax treatment: contributions, interest, and maturity amount are all tax-exempt (an "EEE" - Exempt-Exempt-Exempt - status), making it one of the most tax-efficient long-term debt instruments available.
• Best suited for: general long-term, low-risk savings - retirement supplementation, a long-horizon goal, or simply a safe, tax-efficient debt allocation within a broader portfolio.

Sukanya Samriddhi Yojana (SSY)

• Who can open one: a parent/guardian, specifically for a girl child under 10 years old at the time of opening.
• Lock-in: matures when the girl turns 21, or upon her marriage after age 18 (with conditions) - partial withdrawal is allowed for higher education needs after she turns 18.
• Contribution limits: same ₹1.5 lakh/year maximum as PPF.
• Current interest rate: 8.2% per annum - unchanged for eight consecutive quarters as of mid-2026, and consistently the highest among government small savings schemes.
• Tax treatment: also EEE, same as PPF.

How to choose

These aren't really competing for the same goal. If you're saving specifically for a daughter's education or marriage, SSY's higher rate makes it a strong fit, on top of (not instead of) your own PPF or retirement savings. If your goal is general long-term savings for yourself, PPF is the relevant one - SSY isn't an option unless you have an eligible daughter and haven't already opened her account.

(Interest rates checked as of September 2026, Q2 FY 2026-27. Both are revised quarterly by government notification - if it's been a while since you're reading this, check the current rate before assuming it still applies.)

A common, worthwhile approach

Many families use both: PPF for their own long-term savings, and SSY specifically earmarked for a daughter's future goals - since they serve genuinely different purposes rather than being alternatives to each other.