Sukanya Samriddhi Yojana: The Government of India oversees the Sukanya Samriddhi Yojana. You can invest in this scheme on your daughter’s behalf if she is up to 10 years old. This scheme requires investments for a period of 15 years, and it matures after 21 years.
Investment Limits and Interest Rate
The Sukanya Samriddhi Scheme allows investments up to Rs 1.5 lakh each year. Interest is available at an 8.2 percent rate under this long-term plan. You can use this plan to give your daughter a substantial sum of money over time because of the compounding effect. In any case, there is one SSY regulation that you should be aware of. This is a rule that most people are unaware of.
Inability to Continue Investing
Let’s say you sign up for this programme in your daughter’s name and, after approximately five or six years, you believe that you won’t be able to afford to keep investing in it. It seems sense that you would not wish to take out the deposited funds for a period of five to six years in such a scenario. However, we would like to inform you that the Sukanya Samriddhi Yojana does not offer the option for premature withdrawal. You can only withdraw a portion of this, and only once your daughter reaches the age of 18.
Eligibility for Withdrawal
Following the completion of her tenth grade education or upon becoming eighteen, the daughter is eligible to take funds from the account. You may take up to 50% of the entire balance from the previous fiscal year in such a circumstance.
The funds may be taken in installments or as a single lump sum. Only one payment per year will be made, and payments may be made in installments for a maximum of five years. You will need to present documentation of your daughter’s higher education if you are taking out loans for her education.
Account Closure Due to Daughter’s Demise
In the event that the girl passes away before her plan matures, her parents will receive the money deposited in the plan along with interest. Nevertheless, the girl’s death certificate needs to be turned in for this.
You may close the Sukanya Samriddhi account early if the girl whose name it is in has a serious illness and requires money for treatment. However, you might need to submit documentation about your daughter’s condition and medical care. However, this institution is still open after five years.
Mid-Term Closure Due to Parental Demise
A mid-term closure of the Sukanya Samriddhi account may occur if the girl’s parents or legal guardians pass away before the account matures. Your account is cancelled even if you renounce your Indian citizenship. In this case, interest is added and the full amount is refunded. However, this account can be kept open till you reach adulthood if you have relocated abroad but have maintained your Indian citizenship.