Sukanya Samriddhi Yojana (SSY) vs. Public Provident Fund (PPF) – What Happens if You Invest ₹1 Lakh Annually for 15 Years?  

Both the Sukanya Samriddhi Yojana (SSY) and the Public Provident Fund (PPF) are popular, tax-saving investment schemes in India offering long-term financial security. Here’s a detailed comparison to determine which one can create a larger corpus on maturity with an annual investment of Rs 1 lakh for 15 years.

1. Key Features Comparison

2. Total Investment

Both schemes allow an annual investment of up to ₹1.5 lakh, but in this case, we’re comparing based on an annual investment of ₹1 lakh for 15 years.

Total Investment Over 15 Years – ₹15,00,000 (for both SSY and PPF) 

3. Maturity Value After 21 Years

Let’s compare the corpus generated under SSY and PPF:

 

4. Analysis Of Maturity Corpus

• PPF marginally outperforms SSY by generating a maturity value of ₹48,61,118, which is ₹73,039 higher than the maturity value of ₹47,88,079 in SSY.

• The difference arises primarily due to the slightly higher total investment period for PPF (additional contributions possible post-15 years in extended blocks) and its compounding mechanism.

5. Tax Benefits

Both schemes provide EEE (Exempt-Exempt-Exempt) tax benefits:

• Deposits are eligible for deductions under Section 80C.

• Interest earned and the maturity amount are tax-free.

6. Flexibility And Purpose

• Sukanya Samriddhi Yojana: Designed specifically for the financial security of a girl child, ensuring funds for her education or marriage. Limited withdrawal options before maturity align with this goal.

• Public Provident Fund: Offers more flexibility. It can be extended indefinitely in 5-year blocks post-maturity, making it ideal for long-term wealth creation.

Final Verdict

• If you are investing solely for a girl child’s future, SSY is the preferred option due to its higher purpose alignment and slight edge in current interest rates.

• If you seek more flexibility, extended maturity options, and broader applicability, PPF is better, especially since it generates a slightly larger corpus due to its compounding benefits.

In conclusion: Both schemes are excellent for long-term wealth creation, but for a Rs 1 lakh annual investment, PPF offers a slightly higher maturity value, while SSY ensures a more goal-oriented approach for girl child savings.