SSY vs PPF vs NSC: Which Government Savings Scheme Is Best in 2026?
If you want to grow your savings without taking on market risk, India's small-savings schemes are hard to beat. They are backed by the government, the returns are fixed in advance each quarter, and most of them help you save tax too. The hard part is choosing between them.
Three of the most popular options are Sukanya Samriddhi Yojana (SSY), the Public Provident Fund (PPF), and the National Savings Certificate (NSC). They look similar on the surface — all three are safe, all three qualify for a Section 80C deduction — but they suit very different goals. This guide compares them side by side so you can park your money in the right place.
Quick comparison
| SSY | PPF | NSC | |
|---|---|---|---|
| Interest rate | 8.2% p.a. | 7.1% p.a. | 7.7% p.a. |
| Who can invest | Parent/guardian, for a girl child under 10 | Any resident individual | Any resident individual |
| Tenure / lock-in | Matures 21 years after opening | 15 years (extendable) | 5 years |
| Min / Max per year | ₹250 / ₹1.5 lakh | ₹500 / ₹1.5 lakh | ₹1,000 / no limit |
| Tax benefit | 80C (EEE) | 80C (EEE) | 80C on deposit |
| Interest taxable? | No | No | Yes |
| Liquidity / withdrawal | Partial after girl turns 18 | Partial from year 7 | None until 5-year maturity |
| Best for | A daughter's education and future | Long-term tax-free corpus | Short, safe 5-year lock-in |
All interest rates above are for the current quarter (April–June 2026). They have stayed unchanged for eight straight quarters, but the Ministry of Finance revises them every quarter — confirm the latest rate before investing.
Sukanya Samriddhi Yojana (SSY)
SSY is built for one specific goal: building a fund for a girl child's education and future. A parent or legal guardian can open the account in the name of a girl child below 10 years of age, for a maximum of two daughters per family.
It currently pays 8.2% per annum (current quarter, Apr–Jun 2026; revised quarterly — confirm before investing), compounded annually — the highest of the three. You deposit between ₹250 and ₹1.5 lakh a year for 15 years, and the account matures 21 years after opening. Even after you stop depositing, it keeps compounding until maturity, which is why the final corpus grows so much.
The other big draw is tax. SSY has EEE status: deposits qualify for a Section 80C deduction, and both the interest and the maturity amount are completely tax-free. To see how a regular deposit grows into a maturity corpus, use our SSY calculator.
Public Provident Fund (PPF)
PPF is the classic long-term savings scheme open to any resident individual — no age or income condition. It is the default choice for building a safe, tax-free corpus over many years, often used for retirement.
The current rate is 7.1% per annum (current quarter, Apr–Jun 2026; revised quarterly — confirm before investing), compounded annually. You can deposit between ₹500 and ₹1.5 lakh a year for a 15-year term, which you can extend in blocks of five years. Like SSY, it enjoys EEE tax status — the deposit, the interest, and the maturity are all tax-free.
PPF is more flexible than its long tenure suggests. Partial withdrawals are allowed from the seventh year, and a loan facility against the balance is available between years three and six. That makes it a sensible place for money you want to grow safely but might need to tap into eventually.
National Savings Certificate (NSC)
NSC is the shortest and simplest of the three. Any resident individual can buy it at a post office with a minimum of ₹1,000 and no upper limit. It has a fixed 5-year lock-in and pays 7.7% per annum (current quarter, Apr–Jun 2026; revised quarterly — confirm before investing), compounded annually and paid out at maturity.
The investment qualifies for a Section 80C deduction. The catch is that the interest is taxable — but there is a useful quirk. The interest earned in the first four years is treated as reinvested, so it also qualifies for 80C in those years. Only the final year's interest is fully taxable in your hands.
Because there is no partial withdrawal before maturity, NSC is best treated as a fixed, set-and-forget commitment rather than a flexible savings pot.
Which should you choose?
There is no single winner — the right scheme depends on your goal and time horizon.
- Saving for a daughter? Choose SSY. It pays the highest rate, is fully tax-free, and is purpose-built for a girl child's milestones. If you have an eligible daughter, this is usually the first scheme to fill up.
- Building a long-term, tax-free retirement corpus? Choose PPF. The 15-year term suits a long horizon, the returns are tax-free, and the year-7 withdrawal and loan options give you a safety valve.
- Want a short, safe 5-year lock-in or a quick 80C top-up? Choose NSC. It is ideal when you have already used up better options and want to park a lump sum securely for a fixed period.
In practice, many families use more than one. A common combination is PPF for your own long-term corpus plus SSY for a daughter — both share the same ₹1.5 lakh annual ceiling individually, so you can run them in parallel and stack the tax benefits.
Frequently asked questions
Can I invest in all three at the same time? Yes. There is nothing stopping you from holding SSY, PPF, and NSC together. Each has its own deposit limits, and your total Section 80C deduction is still capped at ₹1.5 lakh across all eligible investments in a year.
Which one gives the highest return? SSY, at 8.2% (current quarter, Apr–Jun 2026; revised quarterly — confirm before investing), followed by NSC at 7.7% and PPF at 7.1%. But SSY is only available for a girl child, so the "best return" you can actually access depends on your eligibility.
Are the returns guaranteed? Yes. All three are government-backed schemes with rates fixed in advance for each quarter, so there is no market risk to your principal. The rate that applies can change in future quarters, but your money is safe.
Which is best for tax saving? All three give a Section 80C deduction on deposits. SSY and PPF are stronger because they are EEE — the interest and maturity are also tax-free. With NSC, the interest is taxable, though the reinvested interest in years one to four also counts towards 80C.
Is the interest rate fixed for the whole tenure? Not exactly. The Ministry of Finance reviews these rates every quarter. NSC locks in the rate prevailing when you buy it for its full five years, while SSY and PPF balances earn whatever rate applies each quarter. Always confirm the current rate before investing.
Find the right scheme for you
The best savings scheme is the one that matches your goal, age, and time horizon. If you have a daughter, start by estimating her maturity corpus with our SSY calculator, then read the full Sukanya Samriddhi Yojana scheme page for official source links. Not sure what else you qualify for? Try our eligibility checker to see every scheme that fits your situation.
Interest rates on small-savings schemes are revised every quarter by the Ministry of Finance. Confirm the latest rate and rules on the official portal or at India Post before investing. This article is general information, not financial advice.