Premature withdrawal and closing of Sukanya Samriddhi Yojana

Keep in mind the following:

From the date of account opening, the SSY Account has a 21-year term.

In a given year, you can make any amount of deposits into the SSY Account.

In a financial year, the least contribution is Rs 250 and the maximum contribution is Rs 1.50 lakh.

The SSY Account will become dormant if the minimum annual contributions are not made.

You must pay a penalty of Rs 50 per default year to reactivate such an account.

If the girl child is over the age of ten, the account can be handled by the parent or the girl child themselves.

The SSY Account must be controlled by the girl kid once she reaches the age of eighteen.

Why should you put money into the Sukanya Samriddhi Yojana?

Guaranteed returns — Because the scheme is supported by the government, the returns are guaranteed.

Every quarter, the government sets the interest rate.

It is determined for the month based on the account's lowest balance between the fifth and the last day of the month.

Tax Advantage — The SSY, like the Public Provident Fund Account, has an Exempt-Exempt-Exempt tax status.

This indicates that your SSY Account payments are eligible for a tax advantage of up to Rs 1.50 lakh under Section 80C of the Income Tax Act, 1961.

Furthermore, both the interest and the sum at maturity are tax-free.

Long-term financial commitment-

The account's lock-in period, which lasts up to 21 years from the date of opening, making it ideal for long-term investments.

This allows you to put money aside for long-term aspirations like your daughter's further education or marriage.

Despite the fact that there is a lock-in period till your daughter reaches the age of 21, there is the possibility to withdraw money after 5 years from the account opening date.

Only for educational purposes is this option available.

How can I close my account?

After 21 years, the SSY Account reaches maturity and is formally closed.

It can, however, be closed prematurely under the following circumstances:

If your daughter marries before the account matures, the account will be closed.

If your daughter becomes a Non-Resident Indian (NRI) or a Person of Indian Origin (POI),

On the basis of great compassion, if the funds are needed for her medical care or in the event of her untimely death.

In such cases, a formal application in Form-2 is required.