Sukanya Samriddhi Yojana vs Public Provident Fund

Understand the difference between Sukanya Samriddhi Yojana and Public Provident Fund.
4 min

Saving for the future is crucial, whether it's for your child's education, your retirement, or other long-term goals. The Indian government offers several safe investment options to help you grow your wealth. Two popular choices are the Sukanya Samriddhi Yojana (SSY) and the Public Provident Fund (PPF). While both offer attractive returns and tax benefits, they have distinct features that cater to different needs.

While both these safe investment avenues share similarities with fixed deposits like guaranteed returns and tax benefits, they also have unique features.

Also read: PPF calculator

Sukanya Samriddhi Yojana vs PPF: Features


Sukanya Samriddhi Yojana

Public Provident Fund

Interest rate

SSY interest rate is 8.2% for the April-June quarter of 2024.

PPF interest rate is 7.1% for the April-June quarter of 2024.

Minimum deposit

Minimum deposit required to open an SSY account is Rs. 250.

Minimum deposit required to open a PPF account is Rs. 500.

Maximum deposit

Maximum annual deposit limit for SSY is Rs. 1.5 lakh.

Maximum annual deposit limit for PPF is Rs. 1.5 lakh.

Maturity period

21 years from the date of opening the account or when the girl child marries after attaining 18 years of age.

The lock-in period for a PPF account is 15 years.

Tax benefits

You can claim tax deductions of up to Rs. 1.5 lakh u/s 80(C) for SSY contributions.

You can claim tax deductions of up to Rs. 1.5 lakh u/s 80(C) for PPF contributions.


In-depth analysis of SSY vs PPF

  • Interest rate: Both SSY and PPF interest rates are subject to quarterly revisions by the central government. An SSY account currently offers an interest rate of 8.2% (April-June quarter 2024). The current PPF interest rate is 7.1% (April-June quarter of 2024). For both schemes, interest is compounded annually and credited at the end of the financial year.
  • Deposit limit: Since the SSY scheme is designed to help parents save for their daughters, the minimum deposit limit is set at just Rs. 250. For PPF, you need to deposit a minimum amount of Rs. 500. Both these small savings schemes have a maximum annual deposit ceiling of Rs. 1.5 lakh.
  • Maturity period: The maturity period of a PPF account is 15 years from the end of the financial year when the account was opened. Once matured, you can choose to extend the PPF account in 5-year intervals with or without fresh contributions. SSY accounts, on the other hand, mature after 21 years of the account opening date or when the girl child marries after attaining the legal age of marriage. SSY accounts cannot be extended.
  • Tax benefits: Contributions to both SSY and PPF qualify for tax deductions of up to Rs. 1.5 lakh u/s 80(C). Additionally, these tax-saving investments fall under the EEE (Exempt, Exempt, Exempt) category. In other words, the interest accrued, as well as the maturity proceeds from these accounts, are tax-free.
  • Withdrawals: Partial withdrawals can be made from a PPF account after the completion of 5 years from the end of the year the account was opened. SSY accounts allow for partial withdrawals only after the girl child reaches the age of 18 years.

SSY vs PPF: Which is better?

The answer depends entirely on your individual needs and financial goals:

  • Focus on a girl child's future: If your primary objective is saving for your daughter's higher education or marriage, SSY is the clear choice. Its specific focus on this purpose often translates to higher interest rates than PPF.
  • General long-term savings: If you are looking for a flexible, tax-efficient long-term savings option, PPF is a versatile choice that anyone can benefit from.
  • Risk tolerance and flexibility: Both SSY and PPF are considered very safe investments. However, PPF offers greater flexibility in terms of tenure extensions and loans against the balance.

You can also consider investing Bajaj Finance Fixed Deposit. With a top-tier AAA rating from financial agencies like CRISIL and ICRA, they offer one of the highest returns, up to 8.85% p.a.


SSY and PPF are excellent government-backed savings schemes. The best choice for you hinges on your saving purpose and individual circumstances. If you are focusing on your daughter's future, SSY's benefits are hard to beat. For general long-term goals with flexibility as a priority, PPF is a strong contender. Thoroughly research both options and consider your financial plan before making the right decision for you.

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Frequently asked questions

Is Sukanya Samriddhi better than PPF?

While SSY offers better returns with higher interest rates, PPF offers better investment flexibility, catering to a wide range of investors.

Can I have both PPF and Sukanya Samriddhi Account?

Yes, you can invest in both schemes


As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.