There is one rule related to SSY which you should understand in all circumstances. Most people are not aware of this rule. After this, if you decide to invest, there will be no scope for regrets later.
Sukanya Samriddhi Yojana is run by the Government of India. If your daughter’s age is up to 10 years, then you can invest in this scheme for her. Investment in this scheme has to be made for 15 years and the scheme matures after 21 years. A maximum of Rs 1.5 lakh can be invested annually in Sukanya Samriddhi Scheme.
In this long term scheme, interest is available at the rate of 8.2 percent. Due to the benefit of compounding, you can add a good amount of money to your daughter in the long run through this scheme. But there is one rule related to SSY which you should understand in any case. Most people are not aware of this rule.
Pre-mature withdrawal rule
Suppose you start investing in this scheme in your daughter’s name and after investing for about 5-6 years, you feel that you will not be able to continue investing in it further. In such a situation, it is obvious that you would not want to withdraw the amount deposited for 5-6 years.
But let us tell you that pre-mature withdrawal facility is not available in Sukanya Samriddhi Yojana. Only partial withdrawal can be made from this, that too when your daughter turns 18 years of age.
Partial Withdrawal Rules
Partial Withdrawal: The facility of withdrawal from the account is available after the daughter completes 10th class or after she turns 18 years of age. In such a situation, you can withdraw up to 50% of the total balance of the last financial year. The money can be received in lump sum or in installments. Money will be received only once in a year and money can be taken in installments for a maximum of five years. If you are withdrawing money for your daughter’s higher studies, then you will have to provide proof for higher studies.
Premature closure occurs in these situations
1. If the girl dies before the maturity of her scheme, her parents get the money invested in this scheme along with interest. However, for this the death certificate of the girl has to be submitted.
2. If the girl in whose name there is Sukanya Samriddhi account has any serious illness and needs money for treatment, then you can close the account prematurely. But for this you may have to provide proof related to your daughter’s illness and treatment. But this facility is available after 5 years.
3. If the parents or legal guardians of the girl in whose name the Sukanya Samriddhi account has been opened dies before the account matures, the account can be closed midway.
4. Even if you give up your Indian citizenship, your account is considered closed. In such a situation, the entire money is returned after adding interest. But if you have settled in another country but have not given up Indian citizenship, then this account can be continued till maturity.
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