Sukanya Samriddhi vs PPF for Your Child's Future
Saving for a child's education or future is a goal many Indian parents share, and two of the safest options are the Sukanya Samriddhi Yojana (SSY) and the Public Provident Fund (PPF). Both are government-backed and tax-efficient, but they suit slightly different situations, so it is worth comparing before you commit.
Sukanya Samriddhi in brief
SSY is a scheme specifically for the girl child, opened by a parent or guardian before she turns ten. It typically offers a higher interest rate than PPF, the interest and maturity are tax-free, and contributions qualify under Section 80C. The trade-off is that it is purpose-built and tied to one girl child, with rules on when funds can be used, largely for her education and marriage.
PPF in brief
PPF is open to anyone and can be used for any goal, including a child's future. It is fully safe, tax-free at maturity, and flexible in who it covers and how the money is eventually used. Its interest rate is usually a little lower than SSY, and it has its own 15-year tenure and contribution rules.
How to choose
- Choose SSY if you are saving specifically for a daughter and want its higher rate and dedicated structure.
- Choose PPF if you want flexibility — any child, any goal, or your own use — with safety and tax benefits.
- Some parents use both: SSY for the dedicated higher return, PPF for flexible additional savings.
Which gives a higher return?
SSY has generally offered a slightly higher government-set rate than PPF, but both are revised periodically. Neither is market-linked, so both are low-risk; the gap between them is modest and can change.
Can I open both for my daughter?
Yes. You can run an SSY account for a daughter and a PPF account alongside it, splitting contributions within the overall 80C limit. This blends SSY's higher rate with PPF's flexibility.
The bottom line
Both SSY and PPF are safe, tax-free, government-backed ways to save for a child — SSY offers a higher rate but is dedicated to a girl child, while PPF is flexible for any goal. Choose by your situation, or use both. Project an SSY account with our free calculator before you open one.