Sukanya Samriddhi Withdrawal Rules: Partial & Maturity

The Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme for the girl child, offering one of the highest interest rates among small savings instruments. Understanding the withdrawal rules is essential to make the most of your SSY account.

What is Sukanya Samriddhi Yojana?

Sukanya Samriddhi Yojana is a savings scheme launched under the Beti Bachao, Beti Padhao campaign. It allows parents or guardians to open an account for a girl child below 10 years of age. The account matures 21 years from the date of opening, and deposits can be made for the first 15 years.

• Current Interest Rate: 8.2% per annum (compounded yearly, as per Q1 FY 2025-26)
• Minimum Deposit: ₹250 per year
• Maximum Deposit: ₹1,50,000 per year
• Tax Benefit: EEE (Exempt-Exempt-Exempt) under Section 80C

Withdrawal Rules at a Glance

Partial Withdrawal Rules (After Age 18)

The account holder can make a partial withdrawal once the girl child:

• Has attained the age of 18 years, OR
• Has passed 10th standard (whichever is earlier)

Key Conditions

1. Maximum Amount: Up to 50% of the balance available at the end of the preceding financial year
2. Withdrawal Frequency: Partial withdrawal can be made only once or in instalments (maximum one per year)
3. Purpose: The withdrawal is meant for higher education expenses of the girl child
4. Proof Required: Admission offer letter or fee receipt from a recognized educational institution

Documents for Partial Withdrawal

• Withdrawal application form
• Identity proof of the account holder (girl child if 18+)
• Admission confirmation or fee receipt from educational institution
• Passbook of SSY account
• Age proof of the girl child (birth certificate or 10th marksheet)

Marriage Withdrawal (Premature Closure for Marriage)

The SSY account can be closed before maturity if the girl child is getting married:

1. Minimum Age: The girl child must be at least 18 years old at the time of closure
2. Timing: Closure is allowed up to one month before or three months after the date of marriage
3. Amount: The entire balance including accrued interest is paid out
4. Account Status: The account is permanently closed

Documents Required

• Application for premature closure
• Marriage proof or affidavit declaring the marriage date
• Age proof of the girl child
• Identity proof
• SSY passbook

Maturity at 21 Years

The SSY account matures 21 years from the date of opening:

1. Final Payout: The entire balance including accumulated interest is paid to the girl child (account holder)
2. Interest Stops: If the maturity amount is not withdrawn, the balance earns interest at the prevailing SSY rate until closure
3. Auto Closure: The account is closed on maturity, and the final amount is transferred to the account holder's bank account

Documents for Maturity Closure

• Maturity closure application form
• Identity and address proof of the girl child
• Citizenship certificate or declaration
• SSY passbook
• Bank account details for fund transfer

Premature Closure (Special Circumstances)

Apart from marriage, premature closure is allowed under these conditions:

1. Death of the Girl Child: The guardian can close the account and withdraw the full balance with interest. A death certificate is required.
2. Life-Threatening Illness: If the girl child suffers from a life-threatening disease, the account can be closed with full balance. Medical proof from a competent authority is needed.
3. Guardian's Death or Change: If the guardian maintaining the account dies, the account can be closed or transferred.
4. Hardship Clause: After 5 years from account opening, premature closure is allowed on compassionate grounds (interest paid at the applicable SSY rate, not reduced).

Step-by-Step: How to Withdraw from SSY Account

At Post Office

1. Visit the post office where the SSY account is held
2. Fill the withdrawal/closure application form
3. Submit the required documents (see above based on withdrawal type)
4. Provide bank account details for fund transfer
5. The post office verifies documents and processes the request
6. Amount is credited to the linked bank account within 2-3 working days

At Bank

1. Visit the bank branch where the SSY account is maintained
2. Fill the bank's SSY withdrawal form
3. Submit KYC documents and supporting proof
4. The bank processes the withdrawal and credits the amount

Important Tips

1. Plan Withdrawals: Partial withdrawal is limited to 50% — plan education expenses accordingly
2. Keep Passbook Updated: Always update your SSY passbook before applying for withdrawal
3. Deposits Continue: Even after partial withdrawal, you must continue minimum annual deposits until the 15th year
4. Only One Account: Only one SSY account per girl child is allowed, with a maximum of two accounts per family
5. Transfer Facility: SSY accounts can be transferred between post offices and banks across India

Frequently Asked Questions

Can I withdraw from SSY before the girl child turns 18?

No, partial withdrawal is not allowed before the girl child turns 18 years or passes 10th standard (whichever is earlier). The only exception is premature closure due to death, life-threatening illness, or extreme hardship (after 5 years).

What happens if I don't withdraw at maturity?

If the maturity amount is not withdrawn, the balance continues to earn interest at the prevailing SSY rate. However, no further deposits can be made after the maturity period.

Can the girl child operate the SSY account herself?

Yes, once the girl child turns 18 years of age, she can operate the account herself, including making deposits and applying for withdrawal.

Is partial withdrawal from SSY taxable?

No, withdrawals from SSY are completely tax-free under the EEE (Exempt-Exempt-Exempt) status. This includes partial withdrawals, maturity proceeds, and interest earned.

Can I withdraw SSY money for purposes other than education?

The partial withdrawal facility is specifically for the higher education of the girl child. However, full closure is allowed for marriage (after 18) or under special circumstances like illness.

What is the penalty for not depositing the minimum amount?

If the minimum deposit of ₹250 is not made in any financial year, a penalty of ₹50 per year of default is charged, along with the minimum deposit for each defaulted year, to revive the account.

This guide is for informational purposes only. CitizenNest is not affiliated with the Government of India. For official details, visit the India Post or National Savings Institute websites. Also see our PPF account guide for another popular tax-saving investment.