Sukanya Samriddhi Yojana or PPF account?

Comparing Sukanya Samriddhi Yojana (SSY) with investing in the PPF and fixed deposits for your little daughter’s education or marriage?

The SSY is more attractive than the PPF because it offers a higher interest rate. The interest rate of the SSY is also linked to the government bond yield. While the PPF offers 25 basis points higher than the yield of 10-year government bonds, the SSY will offer 75 basis points higher than the 10-year government bond yield. For 2014-15, the interest for PPF is 8.7% while the SSY offers 9.1%.

Though the SSY is an attractive proposition, the scheme is not open to everybody.

Sukanya Samriddhi Account meaning Girl Child Prosperity Account is a special deposit account under the Sukanya Samriddhi Yojana (meaning girl child prosperity scheme) launched by Prime Minister of India on 22 January 2015, aiming the welfare of girl child in India.

Under this scheme a saving account can be opened by the parent or legal guardian of a girl child of less than 10 years of age (born on or after: 02-December-2003; For FY 2014-15), with a minimum deposit of ₹ 1,000/- in any post office or authorised branches of commercial bank.

For the FY 2015-16, Government of India has declared an interest rate of 9.2 per cent on SSY scheme. It was 9.1% for FY 2014-2015.The account will remain operative for 21 years from the date of opening of the account or till marriage of the girl child.Partial withdrawal up to 50 per cent of the account balance is allowed, only once after the girl child completes age of 18 years, for the purpose of financing her higher education.


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