Sukanya Samriddhi Yojana: How much funds can be withdrawn before 21 years in Sukanya Samriddhi Yojana? Know the complete details here
Sukanya Samriddhi Yojana: The Central Government operates several Small Savings Schemes. These schemes are highly beneficial for individuals who wish to build a substantial financial corpus for the future by making small, regular investments. If you, too, are looking to invest for your daughter’s marriage or higher education, investing in the Sukanya Samriddhi Yojana (SSY) could prove to be an excellent choice. A key highlight of this scheme is that one can start investing with an initial amount as low as ₹250. Furthermore, it offers a higher interest rate compared to other savings schemes and also provides benefits in the form of tax exemptions.
The government is currently offering an annual interest rate of 7.6% on the Sukanya Samriddhi Yojana. A maximum of ₹1.5 lakh can be invested within a single financial year. Conversely, once the account is opened, if a minimum investment of ₹250 is not made during any given financial year, a penalty of ₹50 will be levied.
If your daughter is under the age of 10, a SSY account can be opened in her name. Under this scheme, only one account can be opened in the name of a single daughter. If there are two daughters, separate accounts must be opened for each of them. An account under the Sukanya Samriddhi Yojana can be opened at any post office or bank.
Can the account be transferred?
Once opened, a Sukanya Samriddhi Yojana account can be transferred to any location within India. If the guardian provides proof of a change in residence, the account will be transferred free of charge. However, if no such proof is furnished, a fee of ₹100 must be paid to the post office or bank where the account was originally opened in order to transfer it.
When Can Funds Be Withdrawn?
This scheme matures when the daughter turns 21 years old. The funds deposited under this scheme cannot be withdrawn until the daughter reaches the age of 18. Even after she turns 18, only 50 percent of the total accumulated amount can be withdrawn from this scheme. The entire amount becomes available once the daughter turns 21. The funds can be received either as a lump sum or in installments. Withdrawals are permitted only once per year. Funds may be withdrawn in installments for a maximum period of five years.
Can an SSY Account Be Closed?
Under the Sukanya Samriddhi Yojana (Sukanya Scheme), if the account holder passes away, the account can be closed upon submission of a death certificate. Subsequently, the funds deposited in the Sukanya Samriddhi Yojana account—along with accrued interest—may be refunded to the child’s guardian. In other instances, an SSY account may be closed five years after it was opened. This is permissible under various circumstances; for example, the account may be closed in cases involving life-threatening illnesses. Furthermore, if the account is being closed for any other reason, permission may still be granted; however, the interest applicable in such cases will be calculated at the rate applicable to a regular savings account.
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