How to Close a Sukanya Samriddhi Account

The Sukanya Samriddhi Yojana is a unique savings account scheme in India that aims to help parents accumulate funds for their daughter's education and marriage. This account is designed to be a long-term investment, providing significant interest benefits. However, there will come a time when the account may need to be closed for various reasons. In this article, we will guide you through the process of closing a Sukanya Samriddhi account.

When Can a Sukanya Samriddhi Account Be Closed?

The Sukanya Samridhi account can be closed under specific circumstances, primarily determined by the age of the girl child or the maturity period of the account. Here are the key conditions:

On Achieving the Age of 21: The account can be closed once the girl child turns 21 years old. At the Age of 18: If the account holder requests to close the account when she is 18 years old, it can be closed. Maturity of the Account: The account automatically closes after 21 years from the date of the account's opening. Predeceased Guardian: If the girl child passes away before reaching the age of 21, the guardian can close the account and submit proof of the girl's death.

Steps to Close a Sukanya Samriddhi Account

Closing a Sukanya Samriddhi account involves several steps. Here is a detailed guide to ensure a smooth process:

Identify the Reason for Closure: Determine the reason for closing the account, whether it's due to the girl turning 18, 21, or in the unfortunate event of her passing away. Visit a Authorised Bank Branch: Go to a public sector bank branch that authorized to handle Sukanya Samriddhi transactions. Ensure you have all necessary documents. Fill out the Account Closure Form: Submit the appropriate forms, which are available at the bank branch. Be prepared to provide any required proofs and documents. Submit Supporting Documentation: Depending on the reason for closure, you may need to submit specific documents such as an ageproof, proof of death, or an application form. Always check with the bank for specific requirements. Wait for the Process: The bank will process your application. This may take a few days, so patience is key. Receive Your Funds: After the process is completed, you will be informed about the withdrawal of funds from the account.

Important Considerations

While closing a Sukanya Samriddhi account, keep in mind the following points:

Interest Earned: The interest earned on the account will be calculated up to the day the account is closed. Tax Benefits: Withdrawn funds from the account may be eligible for tax benefits under the Income Tax Act, 1961. Always verify the tax implications with a tax advisor. Eligible Expenses: The funds can be withdrawn only for educational or marriage expenses of the girl child, as per the guidelines.

Conclusion

Closing a Sukanya Samriddhi account is a straightforward process, but it's crucial to understand the specific conditions and requirements. Whether the account is closed due to the girl turning 18, 21, or in the unfortunate event of her passing away, following the guidelines and obtaining the necessary documentation will ensure a smooth and hassle-free closure process.