SSY vs PPF 2026: Which Scheme Earns You More?
SSY gives 8.2% interest and is only for girl children, while PPF gives 7.1% and is open to everyone. Both are tax-free and government-backed — but which one to pick depends on your family situation and goals.
The 1.1% SSY-PPF interest gap on ₹1.5L/year turns into over ₹8 lakh extra at maturity — roughly 5 years of chai money for a family of four.
SSY pays you 1.1% more than PPF — that gap compounds into lakhs over 21 years
Key Takeaways
Check if your daughter is under 10 years old — open an SSY account immediately at your nearest post office or authorised bank before the eligibility window closes.
Compare your current PPF and SSY contributions against the ₹1.5 lakh annual limit — maximise whichever account you hold to fully use your 80C deduction.
Use a compound interest calculator to model both SSY (8.2%) and PPF (7.1%) with your planned annual deposit — the lakh-level difference will make the right choice obvious for your family.
SSY gives 8.2% interest and is only for girl children, while PPF gives 7.1% and is open to everyone. Both are tax-free and government-backed — but which one to pick depends on your family situation and goals.
Here's what happened: The government has set SSY interest at 8.2% for 2026, while PPF continues at 7.1% — both reviewed quarterly and guaranteed by the central government.. SSY is exclusively for girl children under age 10, with a 21-year lock-in; PPF is open to all Indian residents with a 15-year tenure and unlimited extension option.. Both schemes offer full EEE tax treatment — deduction under Section 80C on investment, tax-free interest earned, and completely tax-free maturity amount..
What you should do: Check if your daughter is under 10 years old — open an SSY account immediately at your nearest post office or authorised bank before the eligibility window closes.. Compare your current PPF and SSY contributions against the ₹1.5 lakh annual limit — maximise whichever account you hold to fully use your 80C deduction.. Use a compound interest calculator to model both SSY (8.2%) and PPF (7.1%) with your planned annual deposit — the lakh-level difference will make the right choice obvious for your family..
SSY deposits made before April 5 each year earn interest for the entire month of April — deposit early every financial year to capture an extra month of 8.2% compounding.
For readers weighing their credit and loan options, our personal loan guide and CIBIL score resources put this update in context.
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- [1]“SSY vs PPF in 2026: Compare interest rates, tax benefits, returns and key differences” mint - money · 16 Aug 2026
This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.
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