The Mahila Samman Savings Certificate is a groundbreaking initiative launched by the Indian government in 2023. This scheme specifically targets women and girls, aiming to promote financial security and empower them through smart saving opportunities. It offers an attractive interest rate of 7.5% p.a. and a convenient investment window with a minimum deposit of Rs. 1,000, making it an ideal choice for women of all backgrounds to build a strong financial future.
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The Mahila Samman Savings Certificate Scheme is a government initiative launched in 2023 to promote saving among women in India. It's a one-time scheme open for two years, from April 2023 to March 2025. Women or guardians acting on behalf of minor girls can invest in this scheme. The scheme offers an attractive interest rate of 7.5% p.a. and allows a maximum deposit of Rs. 2 lakh. This is a good opportunity for women to grow their savings with a guaranteed return.
| Feature | Description |
| Eligibility | Indian women and minor girls (through legal guardians) |
| Availability | One-time scheme; open from April 2023 to March 2025 |
| Investment Period | 2 years (fixed tenure) |
| Minimum Deposit | Rs. 1,000 |
| Maximum Deposit | Rs. 2 lakh (across all accounts for a single woman) |
| Interest Rate | 7.5% p.a. |
| Interest Compounding | Quarterly |
| Partial Withdrawal | Allowed |
| Account Opening | Post offices and banks |
Women of all ages, there's no upper age limit.
Indian resident women can apply for the scheme themselves.
Guardians can open an account for a girl child who is 10 years or older.
Exclusively for Women: Only women or guardians investing on behalf of a minor girl child can open an account.
Attractive Interest Rate: The scheme offers a fixed interest rate of 7.5% p.a., compounded quarterly. This provides a guaranteed return on your investment.
Deposit Limits: You can invest a minimum of Rs. 1,000 and any amount in multiples of Rs. 100. The maximum deposit limit is Rs. 2 lakh per account.
Investment Period: The Mahila Samman Savings Certificate Scheme is a two-year fixed-term deposit. This means your investment is locked in for two years from the account opening date.
Partial Withdrawal: The scheme allows for some flexibility. After one year, you can make a partial withdrawal of up to 40% of the deposit amount.
Government Backing: This scheme is a government-backed initiative, ensuring a safe and secure investment option. Your principal amount and interest earned are guaranteed by the government.
Availability: You can invest in this scheme at designated post offices and authorized scheduled banks.
The Mahila Samman Savings Certificate Scheme itself doesn't offer tax deductions like other investment options. However, the interest earned is subject to tax only if it exceeds Rs. 40,000 (Rs. 50,000 for senior citizens) in a financial year. This means the interest income from the maximum investment of Rs. 2 lakh for two years is typically tax-free due to remaining below the TDS threshold. Thus, TDS is not deducted.
You can apply through either a participating bank or your local post office.
You can download the application form for the "Mahila Samman Savings Certificate" from the official website of India Post or get a hard copy by visiting your nearest post office branch.
Carefully fill out the form with details like your name, address, account type (Mahila Samman Savings Certificate), and the amount you want to deposit. Don't forget to include the declaration and nomination sections.
Along with the completed application form, submit the required documents (identity proof, address proof) and your initial deposit amount in cash or cheque.
Upon successful verification and processing, you'll receive a certificate acknowledging your investment in the scheme.
Checkout Mahila Samman Savings Certificate Application Format: https://www.indiapost.gov.in/VAS/DOP_PDFFiles/form/AccountopeningCertificate.pdf
Not all banks offer this scheme, so ensure you visit a bank that participates in the Mahila Samman Savings Certificate Scheme.
Ask for the "Mahila Samman Savings Certificate application form" at the bank.
Fill out the application form with the required information, including your personal details, deposit amount, and nomination details.
Submit the completed application form with the necessary documents (identity proof, address proof) and your initial deposit amount.
Once the bank processes your application, you'll be provided with a certificate as proof of your investment.
The Indian government has allowed certain government banks and private banks to offer the Mahila Samman Savings Certificate program. This decision was announced on June 27th, 2023, through an electronic government notification. Here are some of the banks where you can invest in this scheme:
Punjab National Bank
Bank of India
Canara Bank
Central Bank of India
Bank of Baroda
Union Bank of India
Aadhaar Card
Proof of age, i.e. Birth Certificate
Passport size photograph
PAN Card
Pay-in-Slip along with deposit amount or cheque
Voter’s ID card
Passport
Letter issued by the National Population Register containing details of name and address
Driving license
Job card issued by NREGA signed by the State Government officer
The Mahila Samman Savings Certificate Scheme has a lock-in period of two years. However, there are a few situations where premature closure is allowed:
After six months: You can close your account anytime after six months from the opening date without any specific reason. However, you'll receive a lower interest rate (usually 2% less than the regular rate) on the deposited amount.
Death of the account holder: In this case, the nominee or legal heir can close the account and receive the full principal amount and accrued interest at the regular rate.
Extreme compassionate grounds: If you face a critical situation like a life-threatening medical condition (yours or your guardian's) and can provide valid documentation, authorities might allow premature closure. The interest rate in such cases would also be the regular rate.
| Feature | Mahila Samman Savings Certificate | Sukanya Samriddhi Yojana | Public Provident Fund (PPF) | Senior Citizen Savings Scheme (SCSS) |
| Eligibility | Women (or guardian for girl child) | Girl child (up to 10 years old) | Resident Indian | Senior citizens (aged 60 years or above) |
| Investment Period | 2 years | Up to 21 years from account opening | 15 years (extendable in blocks of 5 years) | 5 years (extendable by 3 years) |
| Minimum Investment | Rs. 1,000 | Rs. 250 | Rs. 500 | Rs. 1,000 |
| Maximum Investment | Rs. 2 lakh (per account) | Rs. 1.5 lakh (yearly) | Rs. 1.5 lakh (yearly) | Rs. 1.5 lakh (yearly) |
| Interest Rate (as of July 2024) | 7.5% p.a. (fixed) | 7.6% p.a. (subject to change) | 7.1% p.a. (subject to change) | 7.4% p.a. (subject to change) |
| Premature Closure | Allowed after 6 months with penalty (lower interest rate) | Not allowed | Allowed with penalty (after 5 years) | Allowed with penalty (after 1 year) |
†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
*All savings are provided by the insurer as per the IRDAI approved insurance
plan.
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
+Returns Since Inception of LIC Growth Fund
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
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