Mahila Samman Saving Certificate Scheme: What it is, How to Apply, and Benefits

It is good to know that the Indian government is taking initiatives to promote savings among women and girls. The Mahila Samman Savings Certificate scheme seems like a great opportunity for women to invest and earn a fixed rate of interest on their savings. It is also commendable that the scheme is available for a period of two years, which gives women sufficient time to plan and invest.

The interest rate of 7.5% p.a. is also quite attractive, especially in the current economic scenario where interest rates are low. Women who are looking for a safe investment option can consider investing in this scheme.

It is important to note that the scheme has a maximum deposit limit of Rs. 2 lakh, which means that women cannot deposit more than this amount. It is also a one-time scheme, which means that women cannot renew their investment after the two-year period ends.

Overall, the Mahila Samman Savings Certificate scheme seems like a good option for women who want to invest their savings and earn a fixed rate of interest. It is advisable to visit the nearest post office and enquire about the scheme’s terms and conditions before investing.

Features of Mahila Samman Savings Certificate

The Mahila Samman Savings Certificate is a new small savings scheme for women and girls that was announced in the Budget Speech 2023-24 by the Union Finance Minister of India, Smt. Nirmala Sitharaman. Here are some of the features of the scheme:

1. Maximum Deposit: The scheme offers a maximum deposit facility of up to Rs. 2 lakh in the name of women or girls for a period of two years.
2. Interest Rate: The scheme offers a fixed interest rate of 7.5% per annum, which is higher than the current interest rates offered by most savings accounts and fixed deposit schemes.
3. Tenure: The scheme is available for a period of two years, from April 2023 to March 2025.
4. Eligibility: The scheme is open to all women and girls above the age of 18 years. Minors can also invest in the scheme, but the account must be operated by a parent or guardian.
5. Nomination Facility: The scheme also offers a nomination facility, which means that the account holder can nominate a person who will receive the deposit in the event of the account holder’s death.
6. Tax Benefits: The interest earned on the scheme is taxable, but there are no tax benefits on the investment amount.
7. Transferability: The scheme is not transferable, which means that the account cannot be transferred to another person or post office.

Overall, the Mahila Samman Savings Certificate is a good investment option for women and girls who want to earn a fixed rate of interest on their savings. It is important to note that the scheme has a maximum deposit limit of Rs. 2 lakh and is a one-time scheme. Women who are interested in the scheme should visit their nearest post office and enquire about the scheme’s terms and conditions before investing.

Mahila Samman Savings Certificate Calculation

The interest on the Mahila Samman Savings Certificate is compounded quarterly, which means you will get interest on the interest earned during the previous quarter. Using the formula for quarterly compounding, the interest earned on a deposit of Rs.2,00,000 at 7.5% p.a. would be Rs.15,000 for the first year and Rs.16,125 for the second year, as you mentioned. The total maturity amount, including the principal amount and interest earned, would be Rs.2,31,125 at the end of two years. Thank you for providing this helpful calculation!

Premature Closure of Mahila Samman Savings Certificate

The premature closure of the Mahila Samman Savings Certificate is allowed subject to certain conditions. Here are the details:

1. Minimum Holding Period: The account must have been held for at least one year before it can be closed prematurely.
2. Penalty: If the account is closed before the completion of two years, a penalty will be imposed. The penalty amount will depend on the holding period of the account. If the account is closed after one year but before the completion of two years, a penalty of 1% of the deposit amount will be imposed. If the account is closed after the completion of two years, no penalty will be charged.
3. Interest Payment: If the account is closed before the completion of two years, the interest will be paid at the rate applicable for the period for which the deposit has remained with the post office. If the account is closed after the completion of two years, the interest will be paid at the rate applicable for the entire tenure of the deposit.
4. Documentary Proof: The account holder must provide documentary proof for the reason for premature closure, such as medical emergency, higher education, or marriage of the account holder or her dependents.
5. Procedure: To close the account prematurely, the account holder must visit the post office where the account is held and fill in the required form. The account holder must also provide the necessary documents as proof for the reason for premature closure.

It is important to note that premature closure of the Mahila Samman Savings Certificate is allowed only under certain circumstances and subject to penalty. It is advisable to keep the deposit for the full tenure of two years to avoid penalty charges.

How to Open a Mahila Samman Savings Certificate?

To open a Mahila Samman Savings Certificate, you need to follow these steps:

1. Visit the Nearest Post Office: The Mahila Samman Savings Certificate can be opened at any post office in India. Visit the nearest post office to open an account.
2. Fill Out the Application Form: You need to fill out the Mahila Samman Savings Certificate application form. The form is available at the post office or can be downloaded from the India Post website.
3. Submit the Required Documents: You need to submit the required documents along with the application form. The documents required are proof of identity, such as Aadhaar card, passport, voter ID, or driving license, and proof of address, such as Aadhaar card, passport, voter ID, or utility bills.
4. Make the Deposit: You need to make a deposit of at least Rs. 1000 to open the account. The maximum deposit limit is Rs. 2 lakh.
5. Nominate a Person: You can nominate a person who will receive the deposit in the event of your death. The nomination form is also available at the post office.
6. Collect the Certificate: Once the application is processed and the deposit is made, you will receive a certificate from the post office. The certificate will contain the details of the account, such as the deposit amount, tenure, interest rate, and date of maturity.

It is important to note that the Mahila Samman Savings Certificate is available only to women and girls above the age of 18 years. Minors can also invest in the scheme, but the account must be operated by a parent or guardian. Also, the account cannot be transferred to another person or post office.

Mahila Samman Savings Certificate Vs Other Small Savings Schemes

The Mahila Samman Savings Certificate is a new small savings scheme for women and girls introduced in 2023. Here are some key differences between the Mahila Samman Savings Certificate and other small savings schemes:

Particulars	Mahila Samman Savings Certificate	Other Small Savings Schemes
Eligibility	The Mahila Samman Savings Certificate is available only to women and girls above the age of 18 years.	Other small savings schemes, such as the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), and National Savings Certificate (NSC), are available to all individuals.
Deposit Limit:	The Mahila Samman Savings Certificate offers a maximum deposit facility of up to Rs. 2 lakh for two years.	The deposit limit for PPF is Rs. 1.5 lakh per year, while for SSY, it is Rs. 1.5 lakh per year per girl child. The deposit limit for NSC is not fixed and depends on the amount invested.
Interest Rate:	The Mahila Samman Savings Certificate offers an interest rate of 7.5% per annum, which is fixed for the entire tenure of two years.	The interest rate for PPF and SSY is currently 7.1% per annum and 7.6% per annum, respectively, but it is subject to change every quarter. The interest rate for NSC is currently 6.8% per annum, but it is also subject to change every quarter.
Tenure:	The Mahila Samman Savings Certificate has a tenure of two years, which is fixed.	The tenure for PPF is 15 years, which can be extended for another five years. The tenure for SSY is till the girl child attains the age of 21 years. The tenure for NSC is 5 years and 10 years.
Premature Withdrawal:	Premature withdrawal of the Mahila Samman Savings Certificate is allowed after one year, subject to penalty.	Premature withdrawal of PPF and SSY is allowed after five years, subject to certain conditions. Premature withdrawal of NSC is also allowed, subject to certain conditions.

Conclusion

It is important to note that each small savings scheme has its own features, benefits, and limitations. It is advisable to evaluate your financial goals, risk appetite, and liquidity needs before investing in any small savings scheme.