Sukanya Samriddhi Scheme is newly launched by Government of India, for girl child only. Since this scheme is very similar to the ongoing Public Provident Fund Scheme, its best to compare the two before deciding where you want to invest.

1. Comparison between Sukanya Samriddhi Scheme
(SSY) and Public Provident Fund (PPF)
For more refer to: http://sukanyasamriddhiaccount.in/
Features Sukanya Samriddhi Scheme
(SSY)
Public Provident Fund (PPF)
Difference between the Schemes
Eligibility Only for girl child born on or after 02nd
December 2003
For every citizen of India, irrespective of age, and gender
Rate of Interest Currently – 9.1%
Linked to 10 year Government Bond
Yield. Rate will be 0.75% higher than
the bond yield
Currently – 8.7%
Linked to 10 year Government Bond Yield. Rate will be
0.25% higher than the bond yield
Investment
amount
Minimum Rs 1000/- p.a
Further in multiples of Rs 100/-
Maximum Rs 1,50,000/- p.a
Minimum Rs 500/- p.a
Further in multiples of Rs 100/-
Maximum Rs 1,50,000/- p.a
Scheme
Termination
21 years after opening of the account,
or marriage of girl child whichever
happens 1st
.
15 years from the date of account opening.
Investment Period 14 years 15 years
Premature
Withdrawal
50% once only, when girl child attains
age of 18 years
You could withdraw once a year, from the 7th year
onwards. Such withdrawals must not exceed 50 per cent
of the balance at the end of the fourth year, or 50 per
cent of the balance at the end of the immediate
preceding year, whichever is lower.
Premature
Closure
Only in case of extreme financial need,
wherein the parent/guardian cannot
maintain the account. Or in case of
death of girl child for whom the
account was opened.
Only in case of death of account holder.
Mode of
Operation
Currently this scheme is available with
Post offices only and requires manually
visiting the same to open the account
and access other features
This scheme is available in post offices, as well as certain
banks across India. Online PPF facility is also available
with certain banks, like axis bank etc.
Loan Facility No Loan facility is available under this
scheme
Loan can be availed under this scheme; it can be availed
1 year after opening the account, and up to 5 years after
account opening only.
Scheme Extension Currently this scheme offers no
extension option. The account will
mature 21 years from the date of
opening the account, if the girl child
does not wish to withdraw the money
then, she can continue to hold it in the
scheme. Interest at prevailing rate will
be paid on the deposit
Extension option is offered under this scheme. Account
matures 15 years after opening, at which point the
investor can choose to further extend the account for 5
years. There is no limit to the number of such extensions
that can be made.
Similarity between the Schemes
Account Limit One per girl child One per Indian citizen
Transferability Account can be transferred anywhere
within India, on providing proof of new
residence.
Account can be transferred anywhere within India, on
providing proof of new residence.
Tax Benefit EEE, Investment amount, Interest
earned and maturity sum all are
exempt from Income tax
EEE, Investment amount, Interest earned and maturity
sum all are exempt from Income tax