PPF, Sukanya Samriddhi Yojana (SSY) and the National Savings Certificate (NSC) are all government-backed, but they are built for different goals. For July–September 2026 the rates are PPF 7.1%, SSY 8.2% and NSC 7.7%.
Key takeaways
- SSY gives the highest rate and is tax-free, but only for a girl child below 10.
- PPF is the most flexible long-term, tax-free option for any resident individual.
- NSC suits a fixed 5-year goal; interest is taxable but reinvested interest qualifies for deduction.
- All three qualify for the ₹1.5 lakh deduction under Section 80C (Section 123 of the Income-tax Act, 2025) in the old regime.
Side-by-side comparison
| Feature | PPF | SSY | NSC |
|---|---|---|---|
| Rate (Jul–Sep 2026) | 7.1% | 8.2% | 7.7% |
| Who can invest | Any resident individual | Parent/guardian of girl < 10 | Any resident individual |
| Tenure | 15 years (+5-yr extensions) | 21 years (deposits 15 yrs) | 5 years |
| Deposit | ₹500 – ₹1.5 lakh/yr | ₹250 – ₹1.5 lakh/yr | Min ₹1,000, no max |
| Rate locked? | No — revised quarterly | No — revised quarterly | Yes, for 5 years |
| Tax on interest | Exempt | Exempt | Taxable |
| Liquidity | Loan (yrs 3–6), partial withdrawal from yr 7 | 50% at 18 for education | None (except death) |
What ₹1.5 lakh a year becomes
| Scheme | Invested | Maturity (at current rates) |
|---|---|---|
| PPF, 15 years | ₹22.5 lakh | ≈ ₹40.7 lakh |
| SSY, 15 years deposits, 21-yr maturity | ₹22.5 lakh | ≈ ₹71.8 lakh |
| NSC ₹1.5 lakh once, 5 years | ₹1.5 lakh | ≈ ₹2.17 lakh |
Which one for which goal?
- Daughter's education/marriage: SSY first, PPF as a flexible top-up.
- Retirement or long-term tax-free corpus: PPF (plus EPF/VPF, NPS).
- 5-year goal with fixed return: NSC or 5-year post office TD.
- Need liquidity: none of these; keep an emergency fund separately.
Your action checklist
- Decide the goal and horizon first — girl child, retirement income, tax saving or a fixed 5-year goal.
- Check the current quarter's notified rate and whether it is locked for your scheme.
- Open the account at a post office or authorised bank with Aadhaar and PAN.
- Set a yearly reminder to deposit before 5 April (PPF/SSY) and to meet the minimum deposit.
- Add nominees and keep passbooks/e-statements safe.
FAQs
Can I invest in both PPF and SSY?
Yes, but the ₹1.5 lakh deduction limit is combined across all eligible investments.
Which is better in the new tax regime?
PPF and SSY interest remain tax-free in both regimes; only the deduction is lost.
Explore details and calculators on our Saving Schemes hub, PPF and SSY pages.
