The Government of India launched the Sukanya Samriddhi Yojana (SSY) as part of the Beti Bachao-Beti Padhao campaign.
This scheme is designed specifically for daughters. Parents can invest in this scheme to secure funds for their daughter’s education and marriage.
When the daughter turns 18, she receives the invested amount along with the accumulated interest.
In this scheme, parents need to invest for 15 years. After that, no further investments are required, and withdrawals can be made once the daughter turns 18.
However, the scheme fully matures when the daughter reaches 21 years old. If you’re considering this scheme for your daughter, note that she must be under 10 years old.
The government is currently offering an interest rate of 8.2% on this scheme.
In this scheme, you need to invest for 15 years continuously. Often, investors wonder if they can close the scheme before maturity. We will explain whether it’s possible to close the scheme early.
You can close the scheme early
As per the rules of Sukanya Samriddhi Yojana, the Sukanya account can be closed before maturity, but only under certain special circumstances.
1. The scheme can be closed early if the child’s legal guardian or parents pass away. However, the scheme has a 5-year lock-in period, and the account can only be closed after 5 years.
2. If the daughter is diagnosed with a serious illness, the guardian can close the account by submitting relevant medical documents, but this is also applicable only after 5 years.
3. If the daughter or guardian renounces Indian citizenship, the account is considered closed. In this case, the investor will receive only the invested amount, without any interest.
However, if the investor moves to another country but retains Indian citizenship, the account will remain active until maturity.
When can you do premature withdrawal?
1. You can withdraw prematurely if you need money for your daughter’s higher studies after she completes 10th grade.
In this case, you can withdraw up to 50% of the amount, provided you submit proof related to her higher studies.
2. If the daughter passes away before maturity, the parents or guardian will receive the full amount, including the interest, before maturity. In this case, the guardian must submit the death certificate.
3. If you marry off your daughter at the age of 18, you can withdraw 50% of the amount from the Sukanya account. This withdrawal can be made either one month before or up to three months after her marriage.
