As predicted by me last year.... the interest rates on PPF is gradually moving DOWN...
it is inevitable and
with a massive lock-in of 15 years, it is one of the WORST products to put your savings into.
Instead of PPF you have to seriously consider ELSS
Whenever you take any comparision between the Small Savings and the Income Funds of any Mutual Funds, MFs have always been better not only in terms of returns but also due to their Tax Benefits in the form of INDEXATION
And, if your amount is going to be locked in for a longer period, it makes absolutely no sense to put in a product like PPF, Sukanya, it is better you consider going for a dose of Equity, at least in small measure like a Balanced Fund
If it's for Tax Savings purpose then go for ELSS