Sukanya Samriddhi Account: Withdrawal, maturity & premature closure rules explained

Due to rising inflation and the advantages of compounding, it’s advantageous to start out investing or saving as early as doable for the advantage of youngsters by putting probably the most precedence on their future. A risk-free funding possibility might be a good selection in relation to saving on your youngster, and fogeys needs to be knowledgeable that the Finance Ministry has opted to retain the charges for publish workplace small financial savings schemes the identical for the second quarter of FY23. Small financial savings accounts are the best choice since they’re backed by the Indian authorities, and the Department of Posts presents the Sukanya Samriddhi Account (SSA), a popular initiative that not solely gives secure returns however can also be restricted to lady youngsters.

SSA eligibility and deposit rules

A guardian can create accounts in a woman’s title who’s youthful than 10 years outdated. The account might be began at your native publish workplace or financial institution, and guardians needs to be knowledgeable that just one account might be opened within the title of a woman youngster, except twins or triplets. A Sukanya Samriddhi Account (SSA) might be opened with a minimal deposit of 250 as much as a restrict of 1.50 lakh in a monetary 12 months and deposits could also be made for a most of 15 years after the account is opened. If the required minimal deposit will not be deposited in an account throughout a fiscal 12 months, the account might be closed and defaulted accounts might be reactivated previous to the expiration of 15 years from the date of account opening by paying the penalty quantity of 50 together with the minimal deposit of 250 for that monetary 12 months. Parents ought to word that deposits made underneath Sukanya Samriddhi Accounts are earnings tax-deductible as much as 1.5 lakh underneath part 80C of the Income Tax Act.

SSA withdrawal and maturity rules

After a woman reaches 18 years of age or has accomplished the tenth customary, guardians can withdraw cash from the account as much as 50% of the stability in a monetary 12 months. According to the rules set by the Department of Posts underneath the Ministry of Communication, withdrawals might be completed in a single transaction or in installments, with a most of 1 withdrawal per 12 months with as much as a restrict of 5 years. The account might be managed by the guardian till the lady youngster turns 18 years outdated, at which level she might be allowed to deal with it herself and make deposits and withdrawals. However, the maturity quantity might be withdrawn or in easy phrases, the account will mature after 21 years from the account opening date or on the time of the wedding of the lady youngster after she turns 18.

SSA premature closure rules

Guardians needs to be conscious that Sukanya Samriddhi Accounts (SSA) might be prematurely liquidated after 5 years from the date of account inception. Premature withdrawals are nonetheless topic to sure conditions, such because the loss of life of the account holder or the demise of the guardian and incase of the extraordinarily poor well being situation of the account holder. By submitting an utility type together with the required paperwork/passbook on the involved financial institution or publish workplace, premature withdrawals might be made. In the occasion of an early or premature withdrawal w When an account holder passes away, the Department of Posts will apply the rate of interest of Post Office Savings Accounts from the date of loss of life till the date of fee of the withdrawal quantity.

SSA Interest Rates

For the quarter of July-September in FY 2022-23, the Ministry of Finance has maintained the rates of interest unchanged for the small financial savings schemes at their present ranges. This data was launched by the Ministry of Finance in a round dated June 30, 2022. In different phrases, Sukanya Samriddhi Accounts (SSA) will proceed to offer an rate of interest of seven.6 per cent per 12 months for the quarter ending September 30, 2022. This rate of interest is calculated on an annual foundation and is compounded yearly. The obtainable stability within the account between the fifth day and the tip of the month might be used to find out curiosity for the month, and curiosity might be issued to the account on the conclusion of every fiscal 12 months. Additionally, underneath part 80C of the Income Tax Act, the curiosity generated by way of the Sukanya Samriddhi Account (SSA) is tax-free.

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