Before choosing between two investments, you should compare more than just the returns. Here we compare Sukanya Samriddhi Yojana with the Public Provident Fund, point by point.
The Sukanya Samriddhi Account (SSA) and the Public Provident Fund (PPF) are both meant to build a savings habit, but each has its own strengths and weaknesses.
The key differences between SSA and PPF:
| Point of difference | Sukanya Samriddhi Account (SSA) | Public Provident Fund (PPF) |
|---|---|---|
| For whom | Only for a girl child | Every resident Indian |
| Age limit | From birth until she turns 10 | No age limit |
| Who opens it | Her natural or legal guardian (she runs it herself from age 18) | The individual, or the natural or legal guardian for a minor child |
| Where to open | Post offices and authorised banks, including some private banks | Post offices and authorised banks, including some private banks |
| Number of accounts | One account per girl, up to 2 per family, or more if twin or triplet girls are born at the first or second birth | Each individual can hold only one account in their name |
| Minimum contribution | Rs.250 a year | Rs.500 a year |
| Maximum contribution | Rs.1.5 lakhs across all accounts | Rs.1.5 lakhs across all accounts |
| Interest rate | 8.2% per annum (Oct-Dec 2026) | 7.1% per annum (Oct-Dec 2026) |
| Tax benefit on contributions | Deductible u/s 80C | Deductible u/s 80C |
| Tax on interest earned | Interest is tax-free | Interest is tax-free |
| Contribution period | Contributions for 15 years from the date the account is opened | At least 15 years, then in blocks of 5 years |
| Maturity | 21 years from the date the account is opened | 15 years from the financial year the account is opened |
| Penalty | Rs.50 a year if the minimum contribution isn't made | Rs.50 a year if the minimum contribution isn't made |
| Mode of deposit | Cash, demand draft or cheque | Cash, demand draft or cheque |
| Premature withdrawal | Up to 50%, for the girl’s education, after she turns 18 or passes Class 10. Early closure for her marriage after 18, on death, or on compassionate grounds | Partial withdrawals from the 7th financial year. Early closure after 5 years for serious illness, higher education or becoming a non-resident |
| Loan | No loan against the SSA balance | Loan allowed from the third year after opening the account to the sixth year |
| Tax on maturity | The maturity amount is tax-free | The maturity amount is tax-free |
Notes:
- The government reviews the interest rate for both schemes every quarter. The rates above are for October to December 2026.
- Interest is compounded yearly in both schemes.
- A loan against the PPF balance is limited to 25% of the balance at the end of the second year before the year you apply.
- Interest earned in an SSA account is tax-free. This was made law by the Finance Act, 2015, so SSA has the same EEE status as PPF.
- Contributions get a deduction u/s 80C (section 123 of the Income-tax Act, 2025) of up to Rs.1.5 lakhs, together with all your other eligible investments, if you use the old tax regime.