2 weeks ago
SSY vs PPF 2026: Interest Rates, Tax Benefits Compared
Imagine two special piggy banks made by the government of India.
One is called SSY, and it is meant for a family's young daughter.
The other is called PPF, and any resident of India can use it.
Both piggy banks help you save up to ₹1.5 lakh every year.
The SSY piggy bank grows your money a little faster, giving 8.2% interest, while PPF gives 7.1% interest.
You must keep your money in SSY for 21 years, but you keep it in PPF for 15 years and can keep it longer if you want.
With PPF you can even take a loan or pull out some money if needed, but SSY does not allow loans.
The government does not take tax from the interest, so your savings grow without worry.
To use these piggy banks, you need to open an account at a place like India Post.
Choosing one depends on your family's plans, so talking to a financial advisor can help.
As of 16 August 2026, Sukanya Samriddhi Yojana (SSY) offers 8.2% interest per annum while Public Provident Fund (PPF) offers 7.1% per annum.
Both schemes allow a maximum annual deposit of ₹1.5 lakh and eligible contributions qualify for a Section 80C tax deduction.
SSY is available for a girl child below 10 years, with deposits up to 15 years and maturity after 21 years from opening.
PPF is open to resident individuals, has a 15-year tenure that can be extended in five-year blocks, and allows loans and partial withdrawals subject to rules.
SSY does not offer a loan facility, while the minimum annual deposit is ₹250 for SSY and ₹500 for PPF.
Interest and maturity proceeds from both schemes are generally tax-exempt.
- Who
- Indian individual investors, especially parents with a girl child below 10 years
- What
- A comparison of the government-backed savings schemes SSY and PPF on interest rates, tax benefits, returns and key features
- Where
- India
- When
- As of 16 August 2026
- Why
- To help investors decide which scheme best suits their long-term financial goals and family needs
SSY - Higher Returns
PPF - More Flexibility
Interest rate
SSY - Higher Returns
SSY offers a higher 8.2% p.a. rate, 1.1 percentage points above PPF, which can boost long-term wealth through compounding.
PPF - More Flexibility
PPF's 7.1% p.a. still provides tax-free compounded growth while serving a wider range of financial goals.
Flexibility and access
SSY - Higher Returns
SSY is a dedicated, locked-in long-term corpus for an eligible daughter and does not offer loans.
PPF - More Flexibility
PPF permits loans and partial withdrawals and can be extended in five-year blocks, making it suitable for retirement, education and marriage goals.
Key facts
- SSY interest rate
- 8.2% per annum
- PPF interest rate
- 7.1% per annum
- Maximum annual deposit
- ₹1.5 lakh for both schemes
- SSY eligibility
- Girl child below 10 years
- PPF eligibility
- Resident individual; minor account allowed
- SSY maturity
- 21 years from opening
- PPF tenure
- 15 years, extendable in five-year blocks
- Tax benefit
- Section 80C deduction; interest and maturity tax-exempt for both
Sources
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