Saving for your daughter’s future is something most parents start thinking about quite early. Schemes like Sukanya Samriddhi Yojana (SSY) often become a go-to choice because of their long-term benefits.
But what happens when you need access to that money before the full 21-year period is over? Can you withdraw it, and if yes, how much and when? Here’s a simple look at the rules you should know.
SSY is a government-backed savings scheme designed for a girl child. Parents or guardians can open an account before the child turns 10, with deposits ranging from Rs 250 to Rs 1.5 lakh a year. The scheme matures in 21 years and offers tax benefits under Section 80C.
It also enjoys EEE (Exempt- Exempt- Exempt) status, meaning deposits, interest earned, and maturity amount are all tax-free.
The scheme allows partial withdrawal, but not anytime you want. You can withdraw up to 50% of the balance once the girl turns 18 or passes Class 10—whichever comes earlier. This is mainly meant to support education expenses.
Full withdrawal, on the other hand, is allowed only after the account completes 21 years.
There are clear limits and conditions. The withdrawal amount is capped at 50% of the balance at the end of the previous financial year. It can only be used for education or marriage-related expenses.
You can choose to take the money as a lump sum or in up to five instalments. However, the amount withdrawn cannot exceed the actual fees or expenses mentioned in official documents.
To withdraw money, you need to visit the bank or post office where the account is held. You must submit Form-3 along with supporting documents like admission fee slips or relevant bills.
Other documents include the girl child’s birth certificate, guardian’s ID and address proof, and standard KYC (Know Your Customer) documents such as Aadhaar or voter ID.
Simply put, SSY is designed to encourage long-term savings, which is why withdrawals are restricted. While early access is possible, it is allowed only for specific needs.
So, if you’re investing in this scheme, it’s best to treat it as a long-term plan—with limited flexibility for important milestones like education.