Sukanya Samriddhi Account vs PPF vs NSC: Which Should You Choose?

Sukanya Samriddhi Account (SSA) pays the highest small-savings rate: 8.2% for July–September 2026: versus 7.1% for PPF and 7.7% for NSC, and all three are EEE tax-free on the interest. SSA wins on rate but is locked to a girl child and a 21-year horizon; PPF is flexible and open to anyone; NSC is a fixed 5-year term. You can hold all three at once.

This comparison supports the Sukanya Samriddhi Account guide, which covers SSA's rules in full. Here the single question is: for a given goal, which of these three government-backed instruments fits, and can you hold more than one? Rates below are the Ministry of Finance notification for the July–September 2026 quarter, unchanged for several quarters (CAalley reporting of the notification).

The decision table

Feature	Sukanya Samriddhi (SSA)	Public Provident Fund (PPF)	National Savings Certificate (NSC)
Interest rate (Jul–Sep 2026)	8.2%	7.1%	7.7%
Who can hold it	Girl child under 10 (via guardian)	Any resident Indian	Any resident Indian
Tenure	Matures at 21 years; deposits for 15 years	15 years, extendable in 5-year blocks	Fixed 5 years
Annual deposit limit	Rs 1.5 lakh	Rs 1.5 lakh	No maximum
Minimum	Rs 250/year	Rs 500/year	Rs 1,000 (one-time)
Tax on interest	Tax-free (EEE)	Tax-free (EEE)	Taxable, though reinvested interest gets 80C
80C deduction	Yes, up to Rs 1.5 lakh	Yes, up to Rs 1.5 lakh	Yes, up to Rs 1.5 lakh
Liquidity	Very low; part-withdrawal at 18	Low; part-withdrawal from year 7	Locked 5 years

Who each one suits

Choose Sukanya Samriddhi if your goal is specifically a girl child's higher education or marriage and she is under 10. It pays the highest rate of the three, is fully EEE, and its long lock-in is a feature — it ring-fences the money for two decades so it is not raided for something else. The one-line reminder from the pillar: open with Rs 250, deposit up to Rs 1.5 lakh a year for 15 years, mature at 21.

Choose PPF if you want a flexible, all-purpose retirement or long-term corpus for yourself or any family member, not tied to a girl child. It is open to anyone, extendable indefinitely in 5-year blocks, and offers partial withdrawals from year seven; more liquid than SSA, at a lower 7.1% rate.

Choose NSC if you have a lump sum you want to lock for exactly five years at a guaranteed 7.7%, with no annual funding commitment. Its interest is technically taxable, but the reinvested interest of the first four years qualifies afresh under Section 80C. It suits a medium-term goal where you do not want a 15–21 year commitment.

Can you hold all three at once?

Yes. SSA, PPF and NSC are separate instruments with separate accounts, and holding one does not bar the others. A parent can run a Sukanya Samriddhi Account for a daughter, a PPF for themselves, and buy NSC certificates for a five-year goal simultaneously.

The one constraint to plan around is the shared Section 80C ceiling of Rs 1.5 lakh a year. Deposits into all three compete for the same deduction limit, along with EPF, life insurance premiums and other 80C items. So while you can fund all three, only Rs 1.5 lakh of total 80C-eligible contributions is deductible in a year; split it according to which goal matters most.

Note also that SSA and PPF each carry their own Rs 1.5 lakh annual deposit cap, and any amount above the SSA cap earns no interest and is returned. NSC has no upper deposit limit.

Which first?

1. If you have a daughter under 10, prioritise Sukanya Samriddhi for its 8.2% rate and EEE status, it is the best rate available among these.
2. Fill PPF next for flexible long-term money that is not locked to the child.
3. Use NSC for a defined 5-year lump sum once the recurring commitments above are covered.

FAQ

Which pays more, Sukanya Samriddhi or PPF? Sukanya Samriddhi, at 8.2% for July–September 2026 versus 7.1% for PPF.

Can I invest in both SSA and PPF in the same year? Yes, but the combined 80C deduction is capped at Rs 1.5 lakh, and each account has its own separate deposit limit.

Is NSC interest tax-free like SSA and PPF? No. NSC interest is taxable, though the reinvested interest of the early years qualifies for 80C. SSA and PPF are both fully EEE.