Can money be withdrawn from the Sukanya Samriddhi Yojana before the age of 21?
PM Sukanya Samriddhi Yojana: Often, whenever we choose a scheme, some form of confusion or misunderstanding inevitably remains; the same applies to the Pradhan Mantri Sukanya Samriddhi Yojana. The Sukanya Samriddhi Yojana (SSY) is generally viewed as a "lock it and forget it" type of investment. You open an account for your daughter, make regular deposits into it, and let it grow for 21 years.
If allowed to operate in accordance with its intended objectives, this scheme proves to be an excellent avenue for investment. The Sukanya Samriddhi Yojana account matures 21 years after the date of its opening. Until that time, withdrawals from the account are restricted. Since this scheme is designed to encourage long-term savings, you cannot withdraw funds from it at your own discretion.
Circumstances Under Which Withdrawals Are Permitted:
However, there are certain specific situations in which you are permitted to make premature withdrawals. Once your daughter attains the age of 18, you may withdraw up to 50% of the total accumulated balance in the account. This facility is typically provided to cover expenses related to higher education. In other words, you may withdraw funds solely for educational purposes.
This includes college tuition fees, admission-related charges, and other associated expenses. When applying for a withdrawal, you may be required to submit certain supporting documents, such as proof of admission or the fee structure. The permissible withdrawal amount is calculated based on the account balance available at the end of the preceding financial year.
When Can the Account Be Closed?-
You are not required to withdraw the entire accumulated amount in a single lump sum. Depending on your specific needs, the funds can typically be withdrawn in installments spread over a period of a few years. Under certain specific and exceptional circumstances, the account may be closed prematurely—that is, prior to the completion of the 21-year maturity period. For instance, if the girl gets married immediately upon turning 18, the account may be closed.
Furthermore, premature closure of the account may also be permitted in the event of the account holder's demise or in cases of severe financial distress; however, in such instances, the closure of the account is subject to specific terms and conditions. This fact often comes as a surprise to many people. They mistakenly assume that, just like a standard bank deposit, they can withdraw their money whenever they wish—but in reality, this is not the case.
