PPF vs Sukanya Samriddhi Account

Both PPF (Public Provident Fund) and SSY (Sukanya Samriddhi Yojana) are government savings schemes.
They are safe, give good interest, and help save tax—but they are meant for different goals.

Let’s understand the key differences between them.

1. Who Can Open the Account?

Feature	PPF	SSY (Sukanya Samriddhi Yojana)
Who can open?	Any Indian citizen	Parents/guardians of a girl child (age <10 yrs)
Account holder	Self or minor child	Only for girl child (maximum 2 daughters)

---

2. Purpose of the Scheme

• PPF – General long-term savings for anyone
• SSY – Specifically to save for a girl child’s education and marriage

3. Interest Rate (2025)

Feature	PPF	SSY
Interest Rate	7.1% p.a.	8.2% p.a. (higher)
Interest Type	Compound yearly	Compound yearly

(Subject to change quarterly by the government)

4. Tax Benefits

Both PPF and SSY are EEE
(Exempt-Exempt-Exempt)

• Contributions are tax-deductible under Section 80C
• Interest earned is tax-free
• Maturity amount is tax-free

5. Deposit Rules

Feature	PPF	SSY
Min deposit	₹500/year	₹250/year
Max deposit	₹1.5 lakh/year	₹1.5 lakh/year
Duration	15 years (extendable)	Till 21 years from account opening
Lock-in period	Full term (partial allowed)	Full term (partial after age 18)

6. Withdrawal Rules

• PPF: Partial withdrawal allowed after 7 years
• SSY: Partial withdrawal allowed after girl turns 18 (for education or marriage)

7. Premature Closure

• PPF: Allowed for serious illness or higher education
• SSY: Allowed only under specific conditions like death of account holder or marriage after 18

Which One Should You Choose?

• Choose PPF if you want a flexible, long-term, safe savings option for yourself or your child (boy or girl).
• Choose SSY if you have a young daughter and want to secure her future education/marriage with a higher interest rate.

Real-Life Tip

Many families open both accounts:

• SSY for their daughter
• PPF for themselves or their son—to grow wealth safely and save on taxes