NPS Vatsalya vs Sukanya Samriddhi Yojana

NPS Vatsalya and Sukanya Samriddhi Yojana (SSY) are both government-backed savings schemes for children, but they serve different purposes and have different features. This detailed comparison helps you decide which is better for your child's future.

Comparison Table: NPS Vatsalya vs Sukanya Samriddhi

Feature	NPS Vatsalya	Sukanya Samriddhi Yojana
Target	All minors (boys and girls) under 18	Girl children only, under 10
Min contribution	Rs 250/year	Rs 250/year
Max contribution	No limit	Rs 1.5 lakh/year
Returns	Market-linked (9.5-10% historical)	Fixed 8.2% (government-set, reviewed quarterly)
Tax benefit	Rs 50,000 under 80CCD(1B)	Rs 1.5 lakh under 80C
Tax status	EEE on partial withdrawal; lump sum partially taxed	EEE (fully tax-free)
Lock-in	Until age 18 (can continue till 21)	21 years from opening
Partial withdrawal	Up to 25% after 3 years (education, illness, disability)	Up to 50% at age 18 (education/marriage)
Exit at 18	Continue till 21, shift to NPS, or exit (80% lump sum + 20% annuity if corpus >= Rs 8L)	Account continues till age 21
Maturity	Converts to NPS at 18 (or 21)	Matures 21 years from opening
Annuity requirement	Yes (20% if corpus >= Rs 8L)	No
NRI/OCI eligible	Yes	No (only resident Indian girls)

Which is better for your daughter?

For girl children, both schemes are excellent but serve different goals:

• Choose SSY if: You want guaranteed returns, full tax exemption (EEE), and the money for education/marriage (around ages 18-25). SSY is the safer option with predictable growth.
• Choose NPS Vatsalya if: You want potentially higher returns (market-linked 9.5-10% vs fixed 8.2%), are comfortable with market risk, and want to build a long-term retirement corpus for your child. NPS Vatsalya also gives an additional Rs 50,000 tax deduction under 80CCD(1B) that SSY does not.

Can you use both?

Yes. You can open both SSY and NPS Vatsalya for the same girl child. This gives you:

• Rs 1.5 lakh deduction under 80C (SSY)
• Additional Rs 50,000 deduction under 80CCD(1B) (NPS Vatsalya)
• Total tax saving: Rs 2,00,000 in taxable income

This is the recommended strategy for parents who can afford both — SSY for guaranteed growth and NPS Vatsalya for higher market returns.

For sons

NPS Vatsalya is the only option here, as SSY is restricted to girl children. NPS Vatsalya is available for all minors regardless of gender.

Returns comparison

If you invest Rs 1,000/month for 15 years:

• SSY (8.2% fixed): ~Rs 3,50,000 (fully tax-free)
• NPS Vatsalya (10% market-linked): ~Rs 4,15,000 (lump sum portion partially taxed)
• NPS Vatsalya (12% aggressive): ~Rs 5,00,000 (lump sum portion partially taxed)

Note: SSY returns are guaranteed by the government. NPS Vatsalya returns are market-linked and not guaranteed — they could be higher or lower depending on market performance.

Disclaimer

Information based on PFRDA NPS Vatsalya Scheme Guidelines 2025 and SSY rules as of 2026. Verify with PFRDA and your bank before investing. This page is for educational purposes only.

SSY: Fixed 8.2% interest, EEE tax status, max 1.5L/year, girls only
NPS Vatsalya: Market-linked 9.5-10%, 80CCD(1B) Rs 50K, no max, all genders
NPS Vatsalya exit: 80% lump sum + 20% annuity (if corpus >= Rs 8L)