The Sukanya Samriddhi Yojana (SSY) is a savings scheme introduced by the Indian government to secure the future of a girl child. Many parents and guardians across the country are already taking advantage of its tax benefits and high-interest rates. But one common question that comes up is — “How and when can I withdraw money from the SSY account?”
What Is Sukanya Samriddhi Yojana?
Before diving into the withdrawal rules, here’s a quick refresher.
Sukanya Samriddhi Yojana (SSY) is a savings scheme specifically for a girl child. It was launched under the ‘Beti Bachao, Beti Padhao’ initiative in 2015. The scheme allows parents or legal guardians to open an account in the name of a girl child below the age of 10.
This account can be opened in post offices or authorised banks, and it offers one of the highest interest rates among small savings schemes in India.
General Features of SSY
- Eligibility:Girl child below 10 years of age
- Who can open:Parents or legal guardians
- Deposit range:Minimum ₹250 to maximum ₹1.5 lakh per year
- Interest rate:Reviewed quarterly (currently over 8%)
- Maturity period:21 years from the date of account opening
- Partial withdrawal allowed:Yes, under certain conditions
Withdrawal Rules for SSY Account Holders
Here’s the part everyone is curious about — how to withdraw the money and under what circumstances. The SSY is meant to support the long-term future of the girl child, especially for education and marriage. So, there are specific rules for withdrawal.
1. Full Withdrawal on Maturity
When it happens: After 21 years from the date of opening the account Who can withdraw: The girl child, once she turns 18 years old, and the account has matured Documents required:
- Identity proof of the account holder
- Proof of age
- SSY passbook
- Application for account closure and withdrawal
Important Note: No interest is paid beyond the 21-year period, so it is advisable to withdraw the money once the account matures.
2. Premature Closure – Special Conditions
SSY is a long-term savings plan, but in certain situations, early or premature closure is allowed:
a) Death of the Account Holder
If the girl child, unfortunately, passes away, the account is closed, and the balance is paid to the parent or guardian along with applicable interest.
b) Life-threatening Disease or Medical Emergency
In case of extreme medical emergencies or life-threatening illnesses, the account may be closed prematurely. Medical certificates and treatment proof will be required.
c) Financial Hardship
If the guardian is unable to continue contributions due to severe financial hardship, a premature closure may be allowed. However, this is subject to approval and needs supporting documents.
3. Partial Withdrawal for Higher Education
One of the main benefits of the SSY scheme is that you can withdraw up to 50% of the account balance for the purpose of higher education of the girl child.
When allowed: After the girl child turns 18 years old or has passed Class 10
How much can be withdrawn: Maximum of 50% of the balance available at the end of the preceding financial year
Purpose: Must be used only for higher education such as college or university fees
Documents required:
- Admission proof (letter from college/institute)
- Fee structure/estimation from the institution
- Application for withdrawal
Tip: The withdrawal can be done either lump sum or in installments, depending on the needs of the education.
How to Apply for Withdrawal?
Here are the basic steps to follow:
- Visit your post office or bankwhere the SSY account is held
- Fill out Form-4, which is the official withdrawal form
- Submit required documentssuch as ID proof, proof of age, educational documents, or medical certificates (depending on the reason)
- Provide the SSY passbookfor account verification
- The bank or post office will process the request, and the money will be transferred as per the mode selected
Things to Keep in Mind
- The account cannot be withdrawn fullybefore 21 years unless under special circumstances
- Only the girl child can operate the accountonce she turns 18
- You must continue making depositsfor at least 15 years from the date of opening
- Interest is still earned between the 15th and 21st year even if no deposit is made during that period
Conclusion
The Sukanya Samriddhi Yojana is not just a savings plan — it’s a thoughtful way to invest in your daughter’s future. While it encourages long-term saving, it also offers some flexibility when it comes to education and emergencies.
So if you’re planning ahead for your child’s higher education or marriage, knowing the withdrawal rules of SSY helps you make informed decisions. Just make sure you follow the guidelines and keep the documentation ready when the time comes.
