Tax & Savings
Contents
SSY vs PPF
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Sukanya Samriddhi Yojana vs PPF — both government-backed, but SSY has a higher rate. When to choose which.
Visual Comparison
Key Differences
| Feature | SSY | PPF |
|---|---|---|
| Who can invest | Parents of girl child (under 10) | Any resident individual |
| Interest rate | 8.2% p.a. (FY 2024–25) | 7.1% p.a. |
| Lock-in | 21 years (or marriage after 18) | 15 years |
| Max contribution | ₹1.5 lakh/year | ₹1.5 lakh/year |
| Tax | EEE — fully exempt | EEE — fully exempt |
When to Choose Which
Choose SSY
- You have a daughter under 10 years
- Long-term savings for girl’s education/marriage
- Want higher guaranteed rate than PPF
- EEE status with government guarantee
Choose PPF
- No girl child or child over 10
- You want shorter lock-in (15 vs 21 years)
- Need to access funds before daughter’s marriage
- Building personal retirement corpus
Frequently Asked Questions
SSY offers a higher interest rate (8.2% vs 7.1%) and is specifically designed for a girl child’s future. If you have a daughter, SSY + PPF together maximise EEE savings.
Yes. Both have separate ₹1.5 lakh annual limits. A family can open SSY for daughter and PPF for themselves/spouse.
50% of balance can be withdrawn when daughter turns 18 (for education). Full withdrawal at 21 years or at marriage (whichever is earlier).
Yes. SSY is a Government of India scheme offered through post offices and authorised banks. Returns are guaranteed and fully tax-free.
Maximum 2 accounts — one per girl child, for up to 2 daughters. A third account is allowed for twins/triplets.