PPF vs Sukanya Samriddhi Yojana
Both are government-backed, tax-free savings accounts, but only one is open to everyone. Interest rates, deposit limits, tenure and who each account is actually for.
Researched by Mirza Seraj BaigFacts last checked against official sources on 17 September 2026PPF and Sukanya Samriddhi Yojana are both run by the National Savings Institute, both pay interest the government revises every quarter, and both are exempt from income tax under Schedule II of the Income-tax Act, 2025. The difference is not the tax treatment — it is who can open the account and for how long the money is locked in.
If you are saving for a daughter who is under 10, Sukanya Samriddhi almost always wins on rate. If you are saving for anything else — retirement, a son's education, your own long-term fund — PPF is the one available to you.
PPF vs Sukanya Samriddhi Yojana, feature by feature
Rates shown are for 1 July to 30 September 2026; both are revised every quarter by the Ministry of Finance.
| Feature | PPF | Sukanya Samriddhi Yojana |
|---|---|---|
| Who can open it | Any individual (resident Indian), or a guardian on behalf of a minor | A parent or guardian, for a girl child before she turns 10 |
| Current interest rate | 7.1% a year | 8.2% a year |
| Minimum deposit | ₹500 a year | ₹250 a year |
| Maximum deposit | ₹1,50,000 a year | ₹1,50,000 a year |
| Deposit period | 15 years, extendable in blocks of 5 | 15 years from account opening |
| Account matures | 15 years (or later, if extended) | 21 years after opening |
| Interest calculation | On the lowest balance between the 5th and end of each month | Same rule — on the lowest balance between the 5th and end of each month |
| Number of accounts | One account per person | At most two per family, with an exception for twins or triplets |
| Tax on deposits | Deductible up to ₹1,50,000/year under section 123, only outside the new regime | Deductible up to ₹1,50,000/year under section 123, only outside the new regime |
| Tax on interest and maturity | Exempt under Schedule II | Exempt under Schedule II |
| Premature closure | Allowed from year 5, for specified reasons only (medical treatment, higher education) | Allowed from year 5, for specified reasons, or on the girl's marriage after she turns 18 |
Which should you choose?
There is no real choice if you are saving for a daughter under 10: Sukanya Samriddhi's rate has run above PPF's for years, the two accounts are taxed identically, and the ₹1,50,000 annual cap is shared across whatever section 123 investments you make anyway — putting it in SSY instead of PPF costs nothing and pays more.
For anyone else — sons, adult children, your own retirement savings, or a family that has already opened its two SSY accounts — PPF is the equivalent account you actually qualify for. Both calculators on this site use the exact deposit-timing rule (before the 5th of the month) so the numbers you see match what the account will actually pay.
Frequently asked questions
Can I have both a PPF and a Sukanya Samriddhi account?
Yes. They are separate schemes with separate ₹1,50,000 annual limits for deposit purposes, though the section 123 tax deduction is capped at ₹1,50,000 in total across all your eligible investments, not per account.
Which pays more interest, PPF or Sukanya Samriddhi?
Sukanya Samriddhi, currently 8.2% against PPF's 7.1%. Both rates are set by the Ministry of Finance and revised every quarter — check the current rate before relying on either figure.
Can I open a PPF account for my daughter instead of Sukanya Samriddhi?
Yes, a minor's PPF account is allowed, but it earns the lower PPF rate and matures at 15 years rather than SSY's 21. For a girl under 10, Sukanya Samriddhi is the better-paying account for the same tax treatment.
What happens to Sukanya Samriddhi when my daughter turns 18 or marries?
The account can be closed early on her marriage, after she turns 18. Otherwise it keeps running to its normal 21-year maturity regardless of her age.