SSY vs PPF Calculator

Sukanya Samriddhi Yojana (SSY) is specifically designed for the girl child and currently offers 8.2% interest (FY 2025-26), which is higher than PPF's 7.1%. Both have EEE (Exempt-Exempt-Exempt) tax status, meaning investment, interest, and maturity are all tax-free. SSY allows deposits for 15 years and matures when the girl turns 21. For a girl child, SSY is the clear winner due to the higher interest rate and government backing. However, SSY can only be opened for a girl child under 10 years of age, and a family can open a maximum of 2 SSY accounts (for 2 daughters).

Yes, you can open both an SSY account and a PPF account for your daughter. Both qualify for Section 80C deduction, but the combined limit across all 80C instruments is ₹1.5 lakh per financial year. A smart strategy is to invest ₹1.5 lakh in SSY (higher rate) and open a PPF in your own name for additional ₹1.5 lakh deduction. This way, the family gets ₹3 lakh in total 80C deduction while maximizing returns through SSY's higher rate.

Both SSY and PPF have a maximum annual deposit limit of ₹1.5 lakh. The minimum deposit for SSY is ₹250 per year (failure to deposit minimum leads to a ₹50 penalty), while PPF requires a minimum of ₹500 per year. SSY deposits can be made for the first 15 years from account opening. PPF has a 15-year tenure, extendable in 5-year blocks with or without further contributions.

SSY allows partial withdrawal of up to 50% of the balance at the end of the preceding financial year once the girl turns 18, for education or marriage expenses. The account matures when the girl turns 21. PPF allows partial withdrawal from the 7th financial year onwards (up to 50% of the balance at the end of the 4th preceding year). PPF can be prematurely closed after 5 years for specific reasons like serious illness or higher education, with a 1% interest penalty. PPF is more flexible for partial withdrawals.

With ₹1.5 lakh annual investment for 15 years: SSY at 8.2% will give approximately ₹43.1 lakh at maturity (girl turns 21, assuming account opened at birth — total tenure ~21 years with deposits for 15 years). PPF at 7.1% will give approximately ₹40.7 lakh after 15 years. The SSY amount is higher because of (a) higher interest rate and (b) interest continues to accrue for the remaining years after deposits stop. Total invested in both cases is ₹22.5 lakh. Both maturity amounts are completely tax-free.