PPF vs Sukanya Samriddhi Yojana: Where Will ₹1,000 Monthly Investment Give Higher Returns in 15 Years?

For investors looking for safe and government-backed savings options, Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY) are two of the most reliable schemes available in India. Both options offer guaranteed returns, tax benefits, and long-term wealth creation. But if you invest just ₹1,000 every month for 15 years, which scheme will generate better returns? Let’s break down the complete calculation for both.

Why Choose PPF or SSY?

Bank deposits, mutual funds, and stock markets offer multiple investment avenues, but many people prefer government-backed schemes due to their safety and assured returns.

• PPF is open to every citizen and is one of the most popular long-term investment choices for wealth creation and retirement planning.

• SSY, on the other hand, is designed exclusively for the girl child, allowing parents to build a strong financial corpus for their daughter’s education and marriage.

Both schemes come with attractive interest rates and tax exemptions under Section 80C, making them a preferred choice for small investors.

PPF Returns: ₹1,000 Monthly for 15 Years

The Public Provident Fund currently offers 7.1% interest per annum. The maturity period of the scheme is 15 years, and investors can deposit up to ₹1.5 lakh annually.

If you save ₹1,000 per month:

• Yearly investment = ₹12,000

• Total investment over 15 years = ₹1.80 lakh

• Maturity amount = ₹3.25 lakh (approx.)

• Total profit = ₹1.45 lakh

This means that by investing a small fixed amount regularly, your money almost doubles in 15 years with zero risk.

SSY Returns: ₹1,000 Monthly for 15 Years

Sukanya Samriddhi Yojana, meant for parents of daughters below 10 years of age, currently offers 8.2% annual interest, which is higher than PPF. The maximum annual investment allowed is ₹1.5 lakh, and contributions must be made for 15 years, while the maturity period is 21 years. The maturity corpus can be withdrawn once the girl turns 21.

If you invest ₹1,000 every month:

• Yearly investment = ₹12,000

• Total investment over 15 years = ₹1.80 lakh

• Maturity amount = ₹5.54 lakh (approx.)

• Total profit = ₹3.74 lakh

Clearly, SSY offers significantly higher returns compared to PPF on the same investment amount.

PPF vs SSY: Key Differences at a Glance

Feature	PPF	SSY
Eligible Investors	Any Indian citizen	Parents of a girl child (below 10 years)
Maximum Annual Investment	₹1.5 lakh	₹1.5 lakh
Maturity Period	15 years	21 years
Lock-in Period	Full 15 years	Till daughter turns 21 (partial withdrawal allowed after 18 years)
Current Interest Rate	7.1%	8.2%
Tax Benefits	Yes (Sec 80C)	Yes (Sec 80C)

Final Verdict

For general investors, PPF is a stable, long-term savings plan that suits retirement planning and wealth creation with moderate returns. However, for parents of daughters, SSY is the clear winner, offering much higher returns for the same amount of investment.

By investing ₹1,000 per month for 15 years:

• PPF will give you ₹3.25 lakh (profit of ₹1.45 lakh)

• SSY will give you ₹5.54 lakh (profit of ₹3.74 lakh)

So, if you are eligible for Sukanya Samriddhi Yojana, it is the more rewarding choice. If not, PPF still remains one of the safest and most trusted government-backed investments.