Sukanya Samriddhi Yojana vs PPF - Which Is Better for a Girl Child?
SSY pays 8.2% vs PPF at 7.1% - SSY rate is 1.1% higher. On Rs 1.5 lakh/year for 15 years: SSY corpus at age 21 = approximately Rs 70 lakh. PPF at 15 years = Rs 40.7 lakh (shorter compounding since PPF matures at 15). SSY wins on pure returns. PPF wins on flexibility - no restriction to girl child, can be extended indefinitely, partial withdrawal from year 7.
Total Deposited
₹22,50,000
15 years of deposits
Interest Earned
₹34,19,840
Maturity at Age 21
₹56,69,840
SSY rate: 8.2% p.a. compounded annually (Q1 FY 2026-27). Deposits for 15 years, maturity at girl's age 21. Min ₹250/year, max ₹1.5L/year. Interest fully tax-free under Section 80C.
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Common questions about Sukanya Samriddhi Yojana vs PPF - Which Is Better for a Girl Child?
What if I have a son and a daughter - can I open SSY for the daughter and PPF for the son?
Yes, absolutely. SSY is only for girls. For sons, PPF is an excellent equivalent. Both offer EEE tax status, government guarantee, and long-term wealth building. Many families use both: SSY for daughters (higher rate, marriage/education focused), and PPF for sons and for themselves (more flexible, longer duration possible).
What are the tax benefits of SSY?
SSY offers EEE tax status: Exempt at investment (Rs 1.5 lakh/year under Section 80C), Exempt during growth (interest not taxed annually), Exempt at withdrawal (maturity amount fully tax-free). This makes SSY equivalent to PPF and better than ELSS (which has LTCG tax on gains above Rs 1.25 lakh). The 8.2% rate is tax-free, making effective yield very high for 30% taxpayers.
Can NRI parents open SSY for their India-based daughter?
No. SSY is available only to resident Indian girl children. NRI parents whose daughter is an Indian resident (living in India) may be eligible in some cases, but NRI parents opening SSY for daughters living abroad is not permitted. If the account holder acquires NRI status, the account typically cannot be continued.