Mahila Samman Savings Certificate: Hurry Up! Deadline To Earn 7.5% Interest Nears, How To Open This Account?

The Mahila Samman Savings Certificate, which was announced in the 2023 Budget, is a special small savings scheme offered by the Government of India exclusively for women investors. This initiative aims to empower women by encouraging them to invest in their future and develop a habit of saving. The certificate is designed to provide financial security and independence to women, thereby contributing to the overall economic growth and prosperity of the country. However, the last date for investing in this government scheme which offers as massive as 7.5% returns, is nearing.

Has the Mahila Samman Savings Certificate been extended in Budget 2024?

In the Budget for 2024, there were no specific announcements made regarding the Mahila Samman Savings Certificate. As a result, it can be inferred that the existing deadline and interest rate for the certificate will remain unchanged from the previous year, 2023.

What is Mahila Samman Savings Certificate?

The Mahila Samman Savings Certificate is a new government-backed scheme aimed at empowering women financially. This initiative was announced in Budget 2023 as a one-time scheme available for a two-year period, from April 2023 to March 2025. It has been operational since April 1, 2023, through the Department of Post. The scheme aims to provide women with a secure and beneficial savings option, thereby contributing to their financial independence and stability.

On June 27, 2023, the Department of Economic Affairs, Ministry of Finance, made an official announcement through an e-gazette, authorizing all Public Sector Banks and qualified Private Sector Banks to adopt and implement the Mahila Samman Savings Certificate, 2023. This certificate is aimed at promoting savings and financial empowerment among women.

The Mahila Samman Savings certificate is offered by a select few banks apart from India Post. These institutions include the Bank of Baroda, Canara Bank, Bank of India, Punjab National Bank (PNB), and Union Bank of India. This savings program is specifically designed to empower and support women with their financial goals. If you are interested in this scheme, you can reach out to the aforementioned banks for further details and assistance.

Who is eligible to open an MSS savings account?

The account can be opened by a woman in her own name, or by a guardian on behalf of a minor girl.

Interest Rate of Mahila Samman Savings Certificate

When you make a deposit, it will earn an interest of 7.5 percent per year. This interest will be calculated and added to your account every three months, and it will be paid to you when you close your account. If you open an account or make a deposit in a way that goes against our rules, it will earn interest at the rate of a PO Savings Account.

Withdrawal On Mahila Samman Savings Certificate

Upon the completion of two years from the account opening date, the maturity amount will be paid to the account holder. The Mahila Samman Saving Certificate scheme offers a partial withdrawal facility, allowing the account holder to withdraw up to 40% of the account balance after the first year from the account opening date. This feature provides the account holder with flexibility and access to a portion of their savings while still earning interest on the remaining balance.

Premature Closure Of Account

The account shall not be closed before maturity except in the following cases:

1. On the death of the account holder.
2. On extreme compassionate grounds, such as the life-threatening disease of the account holder or the death of the guardian, with relevant documents.
Note: Scheme interest will be paid on the principal amount.

3. After six months of account opening without mentioning any reason. However, in this case, the scheme interest paid will be at a reduced rate of 2%, for example, 5.5%.

Payment On Maturity

Upon the completion of a two-year period, the deposit will reach maturity. At this time, the account holder will have the option to request payment of the eligible balance. To do so, they must submit a Form-2 application to the accounts office.

How To Open Mahila Samman Savings?

To open a new account, please ensure that you submit the following documents at the nearest post office:

1. Completed Account Opening Form
2. KYC Documents: Aadhaar and PAN card
3. KYC form specifically for the new account holder
4. Pay-in-Slip along with the deposit amount or chequeSubmit Account Opening Form, KYC Document (Aadhaar and PAN card), KYC form for new account holder, Pay-in-Slip alongwith deposit amount/cheque at nearest post office.