SSY vs PPF
Both are tax-free and government-backed. They differ in who can open one, and in how long the money stays.
| Sukanya Samriddhi | PPF | |
|---|---|---|
| Rate | 8.20% | 7.10% |
| Who | A daughter under 10, opened by a parent or guardian | Any resident individual |
| Term | 21 years from opening | 15 years, extendable in 5-year blocks |
| Yearly limit | ₹250 to ₹1.5 lakh | ₹500 to ₹1.5 lakh |
| Tax | Exempt at all three stages | Exempt at all three stages |
| Access | Restricted; rules for marriage and education | Partial withdrawal from year 6 |
SSY pays 8.20% against PPF's 7.10%, and the higher rate is the entire reason it exists — a long horizon with no early access. If you have a daughter under ten, SSY is usually the better home for that money.
If you do not, the question is moot. PPF is available to anyone, and the 15-year term is the trade-off you accept for tax-free compounding.
Source: National Savings Institute, quarter beginning 2026-10-01.