Yes, you can withdraw money from your Sukanya Samriddhi Yojana (SSY) account before maturity, but only under certain conditions. Here are some of the withdrawal rules for SSY account:
- You can withdraw up to 50% of the available balance at the end of the preceding financial year for the marriage or higher education of the girl child.
- You can withdraw money only after the girl child reaches the age of 18 or has passed 10th standard, whichever is earlier.
- You can withdraw money in one lump sum or in installments of up to once a year for a period of five years, subject to the prescribed limit and actual fee/other charge conditions.
- You need to fill out Form-3 and submit it with the necessary documents such as age proof, admission confirmation or fee structure.
You can also close your SSY account prematurely in case of death or life-threatening disease of the account holder or guardian, or in case of marriage of the girl child after she is 18 years old. You need to fill out Form-2 and submit it with the relevant documents such as death certificate or declaration on non-judicial stamp paper attested by the notary.
However, it is advisable to keep your money invested in SSY account until maturity to benefit from the high-interest rates and tax benefits. The current interest rate for Q2 (July-September) FY 2023-24 is 8% p.a. The deposits and the Interests earned are exempt from tax under section 80C and section 10(11A) respectively.