PPF vs SSY: Which has a higher interest rate and which will yield better returns over 21 years? A complete calculation..
PPF vs. SSY: Even today, many people prefer to invest in secure avenues rather than the stock market. For safe investments, individuals often choose schemes like the Public Provident Fund (PPF) and the Sukanya Samriddhi Yojana (SSY). Both are government-backed small savings schemes; however, they differ in terms of interest rates and investment tenures.
As of November 2026, the annual interest rate is 7.1% for the PPF and 8.2% for the Sukanya Samriddhi Yojana. In terms of interest rates, the SSY leads. But does a higher interest rate necessarily result in a larger maturity corpus? Let’s examine the full calculation for both schemes over a 21-year period.
PPF vs. SSY: Which offers a higher interest rate?
The government reviews the interest rates for small savings schemes every three months. For the quarter from October to December 2026, the interest rates are as follows:
The interest rate for the PPF is 7.1%.
The interest rate for the Sukanya Samriddhi Yojana is 8.2%.
Thus, the Sukanya Samriddhi Yojana offers an interest rate that is 1.1% higher than that of the PPF.
How much will you accumulate in a PPF account over 21 years?
The Public Provident Fund (PPF) is a government savings scheme, open to any Indian citizen. In this scheme, one can deposit a minimum of ₹500 and a maximum of ₹1.5 lakh in a single financial year.
The initial maturity period for a PPF account is 15 years. Thereafter, the investor can extend the account in blocks of five years, during which they may continue to make fresh investments. If you invest ₹1.5 lakh annually for 21 years, your total investment will amount to ₹31.5 lakh. Annual investment: ₹1,50,000
Investment tenure: 21 years
Total investment: ₹31,50,000
Interest rate: 7.1%
Estimated fund after 21 years: ₹72.92 lakh
Estimated interest: ₹41.42 lakh
In other words, by investing regularly for 21 years, a fund of approximately ₹72.92 lakh can be accumulated in a PPF account.
How much will one receive after 21 years under the Sukanya Samriddhi Yojana?
The Sukanya Samriddhi Yojana has been launched specifically to secure the future of daughters. Parents or legal guardians can open an account under this scheme in the name of a girl child who is under 10 years of age.
A maximum of ₹1.5 lakh can be deposited in this scheme in a single financial year. A key feature of this scheme is that deposits are required for only 15 years from the date of account opening. Thereafter, the accumulated amount continues to earn interest for the next six years. The account matures 21 years after it is opened.
If you deposit ₹1.5 lakh every year, your total investment over 15 years will amount to ₹22.5 lakh.
Annual investment: ₹1,50,000
Deposit tenure: 15 years
Maturity period: 21 years
Total investment: ₹22,50,000
Interest rate: 8.2%
Estimated fund after 21 years: ₹71.82 lakh
Estimated interest: ₹49.32 lakh
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