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Sukanya Samriddhi Yojana is run by the Government of India. If your daughter is up to 10 years of age 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 Yojana. 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 to your daughter in the long run through this scheme. But there is a rule related to SSY which you should understand in any case. Most people are not aware of this rule.
Premature Withdrawal Rule
Suppose you start investing in this scheme in the name of your daughter 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 the facility of pre-mature withdrawal is not available in Sukanya Samriddhi Yojana. Only partial withdrawal can be made from this and that too when your daughter turns 18 years of age.
Partial Withdrawal Rules
Partial Withdrawal: Facility to withdraw from the account is available after the daughter completes 10th class or 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 instalments. Money will be received only once 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 education, then you will have to provide proof of higher education.
Premature shutdown occurs in these situations
1. If the girl dies before the maturity of the scheme, her parents get the money invested in the scheme along with interest. However, for this, the death certificate of the girl will have to be submitted.
2. If the girl in whose name the Sukanya Samriddhi account is located, has a serious illness and needs money for treatment, then you can close the account prematurely. But for this you may have to provide evidence 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 child 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 case, 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.