Mahila Samman Savings Certificate

Mahila Samman Savings Certificate

Mahila Samman Certificate is a scheme that was announced by the finance minister of India, Nirmala Sitaraman in her budget speech 2023-24. This scheme is specifically designed for girls and women who want to make small savings and build a lump sum amount of money. The scheme was made available from 1st April 2023. It is available in the Indian post offices. The interest rate is 7.5%. The scheme was launched in the event of Azadi ke Mahotsav. It is a one-time scheme. It is available for 2 years starting from April 2023 to March 2025. The maximum amount that can be deposited in this scheme is Rs. 2 lakhs for 2 years at the same interest rate.

Eligibility Criteria

This account can be opened only under the name of a woman. If the girl child is a minor then a guardian or woman can open the account in her name. NRIs, firms, trusts, institutions, posts, companies, etc. are not eligible to open an account under Small Saving Schemes.

Major highlights of Mahila Samman Savings Certificate

The below table gives you an idea about this scheme.

Minimum depositRs. 1000
Maximum depositRs. 2 lakhs
Interest rate7.5% interest per annum
Withdrawal limit40% withdrawal of eligible balance can be taken after one year from the date of account opening.
In-contravention of rulesAccount opened or deposit made in contravention of rules will be eligible for interest of PO Savings Account

Key Features and Benefits of the Mahila Samman Savings Certificate

The important mentions are as follows.

  • This scheme is backed by the Indian government. Therefore, investors have no risk in this plan.
  • This scheme offers a fixed rate of interest, 7.5%. Therefore, there is no possibility of any sort of loss.
  • This policy is for 2 years. Therefore, the maturity amount including the interest will be paid to the account holder after 2 years.
  • In case of a financial emergency, one can partially withdraw money from this account. The withdrawal limit is 40% after 1 year from the date of opening the account.
  • This scheme offers e-banking or mobile banking facilities. For that, the applicant has to submit a duly signed and filled prescribed form to the concerned post office. The activation code will be sent to the registered mobile number of the account holder within 48 hours.

How to open an account for Mahila Samman Savings Certificate?

If you want to open this account at a bank, then follow the below steps.

  • Visit the nearest branch office of the bank or download the Mahila Samman Savings Certificate Application from the official website of the bank.
  • Submit the duly filled and signed application form.
  • Provide all the details that are necessary for declaration and nomination.
  • Submit all other necessary documents to the nearest official branch of the bank.
  • Invest the amount that you want to invest.
  • Once the application is processed, you will receive the certificate that will prove that you have successfully invested in the Mahila Samman Savings Certificate.

If you want to open an account at a post office, then here are the guidelines.

  • You need to get a hold of the application form at first. You can get it from the official branch of the post office, or else, you can download it from the official website of the post office.
  • The ‘To the Post Master’ section of the form has to be completed by filling out the post office address.
  • Provide all other necessary information, and complete the declaration and nomination procedure.
  • Submit the duly filled and signed form to the post office supported by the related documents.
  • Either opt for cash or a cheque to submit the amount to be invested.
  • Do not forget to get the certificate from the post office for future reference.

Premature closure of Mahila Samman Savings Certificate

If you want to close the account before the end of the term, then the following are the grounds.

  • If you want to close the account after 6 months of opening the account, without giving any reason then the interest rate will be 5.5%.
  • If the account holder dies within the tenure of the policy, then the interest rate will be counted on the principal amount.
  • In the case of life-threatening disease of the account holder, or death of the guardian, the interest rate will be counted on the principal amount.

Documents required to open Mahila Samman Savings Certificate

If you want to open this account, the following documents will be required.

  • PAN card
  • KYC form
  • Account opening form
  • Aadhar card. If the Aadhar card is not available then the following documents will do – passport, driving licence, voter ID card, job card issued by MNREGA, and letter issued by the National Population Register.
  • Birth certificate for minor account
  • KYC details of the guardian in case of a minor account.
  • If the minor attains the age of majority, then a fresh account has to be made containing KYC details.

Frequently Asked Questions

A time gap of 3 months has to be maintained between the existing account and opening another account.

The compound interest rate will be calculated quarterly, but the amount will be paid at the end of the maturity.

To get the maturity payment, one has to submit the duly filled and signed account closure form along with other necessary details to the concerned post office or bank. The maturity amount can be received in the following ways.

  • Below Rs. 20000 – By cash
  • Rs. 20000 or above – By cheque or transfer to post office savings account.

Suppose, Miss. Basu invests Rs. 2 lakhs in Mahila Samman Savings Certificate. The interest rate is fixed, 7.5% yearly. In the first year, she will receive Rs. 15000 as interest which is counted on the principal amount. In the 2nd year, her interest amount will be Rs. 16125. Therefore, at the end of 2 years, the total amount will be Rs. 231125, which is also her maturity amount.

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