Quick answer
SSY pays more — 8.2% vs PPF's 7.1% for the Apr-Jun 2026 quarter. But it's a single-purpose vehicle: daughter only, must be opened before she turns 10, and locked till she's 21 (with a small unlock for higher education or marriage after 18). PPF is more flexible — anyone can open it, partial withdrawal kicks in from year 7, and it matures in 15 years.
Side-by-side
| Feature | SSY | PPF |
|---|---|---|
| Current rate (Apr-Jun 2026) | 8.2% | 7.1% |
| Tenure | 21 yrs from opening (deposits 15 yrs) | 15 yrs (extendable in 5-yr blocks) |
| Eligibility | Girl child under 10 only | Any resident Indian |
| Withdrawal | 50% after age 18 (education); full at 21 or marriage | Partial from year 7; full loan from year 3 |
| 80C eligible | Yes | Yes |
| Max per year | ₹1.5L | ₹1.5L |
| Tax status | EEE | EEE |
Important: 80C is one shared ₹1.5L cap. Putting ₹1.5L in SSY and ₹1.5L in PPF doesn't double your deduction — you still get one ₹1.5L total across all 80C instruments.
When SSY wins
Daughter aged 0-10, you want a low-risk education or wedding corpus, and you have no liquidity need on this money for 15+ years. The extra ~1.1% over PPF compounds meaningfully across two decades.
When PPF wins
You want flexibility — anyone in the family can open and use it. Partial withdrawal from year 7 helps if life intervenes. Or you want to use the 80C slot for yourself (not just your daughter). Or your daughter is already over 10 and SSY isn't an option.
Common mistakes
- Opening SSY when daughter is 9 — deposits stop at year 15, so the lock extends well past her wedding age. Plan the timeline backwards.
- Treating SSY ₹1.5L and PPF ₹1.5L as separate caps. 80C is one shared ₹1.5L across PPF, SSY, ELSS, EPF, life insurance and the rest.
- Missing the April 5 deposit trick. Interest is calculated on the lowest balance between the 5th and end of the month — deposit before April 5 to earn interest for the full year.
- Closing SSY mid-way thinking partial withdrawal is allowed any time. It isn't — only 50% after she turns 18, for higher education.
Updated May 26, 2026. Rates per Ministry of Finance notification for Q1 FY 2026-27 (Apr-Jun 2026). Reviewed quarterly.