When it comes to securing a child’s future, two government-backed schemes stand out—Sukanya Samriddhi Yojana (SSY) and Public Provident Fund (PPF). Both are popular for long-term savings and offer tax-free returns, but which one is better if you invest Rs. 1.50 lakh annually for 15 years? Let’s break it down in a simple comparison to help you make an informed decision.
Sukanya Samriddhi Yojana (SSY) and Public Provident Fund (PPF): An Overview
Sukanya Samriddhi Yojana (SSY) is a scheme specifically designed for the girl child. The account matures after 21 years, but you only need to invest for 15 years.
Public Provident Fund (PPF) is a more general scheme available to all, with a 15-year lock-in period. Both schemes are backed by the government, ensuring safety and stable returns.
Here’s how these two schemes work and what returns you can expect.
Key Features of SSY and PPF
| Feature | Sukanya Samriddhi Yojana (SSY) | Public Provident Fund (PPF) |
| Investment Period | 15 years | 15 years |
| Maturity Period | 21 years | 15 years |
| Maximum Annual Deposit | Rs. 1.50 lakh | Rs. 1.50 lakh |
| Tax Benefits | EEE (Tax-free at all stages) | EEE (Tax-free at all stages) |
| Interest Rate (2023) | 8.2% | 7.1% |
| Risk Level | Very Low | Very Low |
Both SSY and PPF fall under the EEE category, meaning you get tax exemptions on investment, returns, and maturity amount under Section 80C of the Income Tax Act.
Return Comparison: SSY vs PPF for 15 Years
If you invest Rs. 1.50 lakh annually for 15 years, here’s what you can expect from both schemes:
| Scheme | Total Investment (15 years) | Interest Rate (2023) | Maturity Value | Interest Benefit |
| Sukanya Samriddhi Yojana | Rs. 22,50,000 | 8.2% | Rs. 69,80,100 | Rs. 47,30,100 |
| Public Provident Fund | Rs. 22,50,000 | 7.1% | Rs. 40,68,209 | Rs. 18,18,209 |
Investment Highlights
- SSY Returns: You invest Rs. 22.50 lakh over 15 years in the Sukanya Samriddhi Yojana, and by the time the account matures after 21 years, the maturity amount will be Rs. 69.80 lakh. This includes an interest benefit of Rs. 47.30 lakh.
- PPF Returns: If you invest the same Rs. 22.50 lakh in a Public Provident Fund, you will get a maturity amount of Rs. 40.68 lakh after 15 years. The interest earned here is Rs. 18.18 lakh.
Which Scheme Offers Higher Returns?
It’s clear from the calculation that the Sukanya Samriddhi Yojana (SSY) provides a higher return due to the longer maturity period (21 years) and the higher interest rate (8.2%). The Public Provident Fund (PPF), while offering stable returns, generates less profit compared to SSY due to its shorter maturity period and lower interest rate (7.1%).
While both are great options for long-term financial planning, the choice depends on your specific goals and needs. For a girl child’s future, SSY offers better growth potential. For general savings and tax benefits, PPF is a solid option.
With both plans, you can secure a tax-free, risk-free investment future for your child or yourself
