Sukanya Samriddhi vs PPF for a Girl Child: Which Is Better?
SSY offers 8.2% interest vs PPF's 7.1%, but has stricter rules. Compare both government schemes to find the best savings plan for your daughter's future.
You’ve got a daughter. You want to put money away for her future — her education, maybe her wedding, maybe just a solid financial head start. Two names keep coming up: Sukanya Samriddhi Yojana (SSY) and Public Provident Fund (PPF). Both are government-backed, both are tax-free, both feel safe. So which one do you actually open?
Here’s the honest answer: SSY wins for most parents of a girl child, but PPF has one specific advantage that matters a lot depending on your situation. Let’s get into it.
The Core Difference Nobody Explains Clearly
SSY was designed specifically for a girl child. You open it in her name, contribute until she’s 15, and the account matures when she turns 21. The current interest rate is 8.2% per annum, compounded annually.
PPF is a general-purpose account — you open it in your own name (or your child’s name), the lock-in is 15 years from the date of opening, and it currently earns 7.1% per annum, also compounded annually.
That difference — 8.2% vs 7.1% — sounds small. Over 15 years with serious money on the table, it isn’t.
What the Numbers Actually Look Like
Say you’re a software professional in Pune earning ₹85,000 a month. You decide to invest ₹12,500 per month (₹1.5 lakh per year) — the maximum allowed in SSY — starting when your daughter is 2 years old.
Here’s what you’re looking at by the time she turns 21:
| SSY (8.2%) | PPF (7.1%) | |
|---|---|---|
| Annual investment | ₹1,50,000 | ₹1,50,000 |
| Years of contribution | 15 years | 15 years |
| Lock-in / maturity | Age 21 | 15 years from opening |
| Estimated corpus at maturity | ~₹71 lakhs | ~₹58 lakhs |
| Tax on maturity | Nil | Nil |
| Tax deduction (80C) | Yes | Yes |
That’s roughly ₹13 lakhs more from SSY — just because of the higher interest rate over the same period. The corpus here means the total amount you’d have at the end, including all interest earned.
Both qualify for deduction under Section 80C, meaning your ₹1.5 lakh annual contribution reduces your taxable income either way.
The One Thing That Makes PPF Relevant Here
SSY has a hard rule: the account closes when your daughter turns 21, or when she gets married after 18 — whichever comes first. You cannot extend it.
PPF, on the other hand, can be extended in blocks of 5 years indefinitely after the initial 15-year period. If your daughter is 3 when you open it and doesn’t need the money at 18 or 21, PPF keeps compounding. Compounding means your interest earns interest — the longer you leave it, the more aggressively it grows.
So if you’re thinking long-term — say she’s a 2-year-old today and you imagine her using this money at 30 for a house deposit, not at 21 for college — PPF’s flexibility makes it worth considering.
But for most parents planning for college fees or a head start in life around age 21, SSY’s higher rate wins clearly.
What About Opening Both?
This is actually the smartest move if your budget allows it. Open SSY for the higher return and earmark it for her education or early adulthood expenses. Open a PPF in your own name (or hers, separately) for the longer-term wealth building that you can extend past 15 years.
You can use a tool like the RupeeRubric investment calculator to model both scenarios with your actual numbers before committing.
Both accounts can be opened at any major bank — SBI, HDFC, Post Office all offer them. The process takes about 30 minutes with your daughter’s birth certificate, your Aadhaar, and a PAN card.
The Practical Call
If your daughter is under 10 years old and you want a disciplined, tax-free savings vehicle with the best government-guaranteed return available — open SSY today. The 8.2% rate is among the highest you’ll find from any sovereign-backed instrument in India, and the EEE tax treatment (exempt at investment, growth, and withdrawal) means the government takes nothing at the other end.
PPF complements it beautifully, but SSY should be your first move.
Frequently Asked Questions
Can I open both SSY and PPF for my daughter?
Yes, but with limits. SSY must be in your daughter’s name. PPF can be opened in her name or yours — you can hold one of each. The ₹1.5 lakh annual 80C limit applies across both combined, so plan your contributions accordingly.
What happens to SSY if my daughter gets married before 21?
The account can be closed after she turns 18 and gets married. You don’t lose the money — it’s paid out to her. But you cannot continue contributing after her marriage.
Can I open SSY for a daughter above 10 years old?
No. SSY can only be opened for a girl child who is below 10 years of age. If your daughter is older, PPF is your only government savings option for her.
Is SSY available on apps like Groww or Zerodha?
Not directly. SSY is a post office and bank product — you open it at SBI, HDFC, ICICI, India Post, or similar institutions. Groww and Zerodha don’t facilitate SSY accounts as of now.
What if I miss a year of SSY contributions?
Your account becomes inactive, but you can revive it by paying ₹250 penalty per missed year along with the minimum annual deposit of ₹250. It doesn’t close automatically — you just need to regularise it.