Sukanya Samriddhi Yojana (SSY) vs Public Provident Fund (PPF)

Public Provident Fund (PPF) is a government-backed retirement saving scheme whereas, SSY is a government-backed small savings scheme dedicated to girl child development. Both accounts provide tax benefits. While a PPF account can be opened by anybody, an SSY account can only be opened in the name of a girl child before she attains the age of 10 years. PPF balance can be liquidated to a certain extent, while the same may not be true for the SSY account.

Both schemes are designed for different purposes and therefore, picking a better option between the two schemes is tough. Here is a table that gives a comparative picture of both schemes.

Sukanya Samriddhi Yojana (SSY) vs Public Provident Fund (PPF)

Comparison

Feature	Sukanya Samriddhi Yojana (SSY)	Public Provident Fund (PPF)
Purpose	Long-term savings for a girl child	Long-term savings for individuals
Eligibility	Girl child below 10 years	Any Indian citizen
Account Holder	Girl child (guardian operates)	Individual (self-operated)
Minimum Investment	₹250 per financial year	₹500 per financial year
Maximum Investment	₹1.5 lakh per financial year	₹1.5 lakh per financial year
Interest Rate	7.6% (subject to change quarterly)	7.1% (subject to change quarterly)
Investment Period	15 years of deposits; matures after 21 years	15 years (extendable in blocks of 5 years)
Lock-in Period	Until the girl child turns 21 years	15 years
Partial Withdrawals	After the girl reaches 18 years (up to 50%)	After 7 years (certain conditions)
Premature Closure	In exceptional cases (death, critical illness)	After 5 years (specific conditions)
Tax Benefits	Under Section 80C, interest and maturity tax-free	Under Section 80C, interest and maturity tax-free
Risk Level	Low (government-backed)	Low (government-backed)
Liquidity	Low	Moderate (after initial lock-in period)
Account Operation	By guardian until the girl turns 18	Self-operated
Transferability	Can be transferred across India	Can be transferred across India

Summary:

• SSY is specifically designed for the girl child's future, with higher interest rates and a longer lock-in period, making it suitable for long-term savings for education and marriage.
• PPF is a versatile savings option available to all Indian citizens, with moderate liquidity and extendable investment periods, making it a flexible choice for general long-term financial planning.