PPF vs NSC vs Sukanya vs SCSS: which scheme fits you
These four get compared constantly because they're all government-backed, all count toward Section 80C, and all get pitched by the same relative who "always puts money in post office schemes." But they're built for four completely different jobs — the question isn't which one is "best," it's which one matches what you're actually saving for.
PPF — the 15-year, fully tax-free default
Public Provident Fund pays interest declared quarterly by the government (7.1% recently), compounded annually, and every rupee of it — contribution, interest, and maturity — is tax-free (EEE status). The catch is the 15-year lock-in, with only limited partial withdrawals allowed from year 7. Investing the full ₹1.5 lakh/year limit for 15 years at 7.1% turns ₹22.5 lakh invested into roughly ₹40.7 lakh at maturity — about ₹18.2 lakh of tax-free interest. It's the right default for money you won't need for over a decade and want to forget about.
NSC — a 5-year lock when you've used up your PPF limit
National Savings Certificate is a simpler, shorter commitment: a fixed 5-year term, interest compounded annually and paid out only at maturity, and — unlike PPF — the interest itself is taxable each year at your slab (though it also re-qualifies for 80C under the "interest reinvested" rule for the first 4 years). ₹1 lakh invested at 7.7% grows to about ₹1.45 lakh after 5 years. Use it when you want a government-guaranteed 5-year return and you've already maxed out the ₹1.5 lakh PPF/80C limit elsewhere.
Sukanya Samriddhi — for a daughter, not for you
Opened for a girl child before she turns 10, Sukanya pays one of the highest government scheme rates (8.2% recently), compounded annually, and — like PPF — is fully tax-free. Contributions are allowed for 15 years from account opening; the account matures when she turns 21. Opened at age 1 and funded with ₹1.5 lakh/year for 15 years, ₹22.5 lakh invested grows to roughly ₹66.4 lakh by maturity at age 21 — the extra 5 years of compounding after contributions stop is doing real work here.
SCSS — income after 60, not growth
Senior Citizens' Savings Scheme is built for a completely different purpose: a lump sum (up to ₹30 lakh) deposited at 60+, paying out interest every quarter as income rather than compounding it. At 8.2% on the ₹30 lakh ceiling, that's about ₹61,500 every quarter — roughly ₹2.46 lakh a year — for 5 years, with the original deposit returned at the end. If you're accumulating for the future, none of the other three schemes here compete with SCSS on that basis, because SCSS isn't trying to grow your money — it's trying to pay your bills.