The government is consistently working to provide better financial security to women, who make up half of the country’s population. From time to time, the government introduces savings schemes tailored to meet the needs of women. In last year’s budget, the government launched the excellent savings scheme, ‘Mahila Samman Bachat Yojana,’ designed especially for women and girls. This savings scheme offers higher returns than bank FDs with a 2-year lock-in period. The last date to invest in the Mahila Samman Bachat Yojana is March 31, 2025. Let’s explore the features of this savings scheme.
Interest Rate of 7.5%
Under the Mahila Samman Savings Scheme, the deposit earns interest at a rate of 7.5% per annum. The interest is compounded quarterly and paid at the time of account closure. Currently, this interest rate is higher than that offered by a 2-year bank FD. For example, SBI provides 6.80% for general customers and 7.30% for senior citizens on a two-year FD. HDFC Bank offers 7.00% for general customers and 7.50% for senior citizens.
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Who Can Invest?
The Mahila Samman Savings Scheme can be opened by a woman in her own name, or by a guardian on behalf of a minor girl.
‘Now, women will not need to keep Piggy Bank at home for their savings. They can take benefits of Mahila Samman Bachat Patra Yojana with 7.50% interest’- @Ipriyalbhardwaj, Vice President of Mahila Morcha, Delhi BJP#AIRVideo: Rahisuddin Rihan pic.twitter.com/IjfXBTHSXa
— All India Radio News (@airnewsalerts) June 19, 2023
Investment Limits
The minimum investment amount for this scheme is Rs 1,000, and the maximum is Rs 2,00,000. To open an account, the applicant must submit the account opening form, KYC documents (Aadhaar and PAN card), a KYC form for new account holders, and the deposit amount or cheque at the nearest post office or bank branch.
Features and Benefits of Mahila Samman Savings Certificate
Here are the key features and benefits of the Mahila Samman Savings Certificate:
- Only women and girls can apply for the Mahila Samman Savings Certificate.
- The maximum deposit allowed under this scheme is ₹2 lakh. The minimum deposit limit has not been specified yet.
- The scheme offers a higher interest rate of 7.5%, compared to bank fixed deposits (FDs) and other small savings schemes.
- The tenure of the scheme is 24 months, from April 2023 to March 2025.
- The tax benefits of this scheme are yet to be determined, although savings schemes generally fall under Section 80C.
- The scheme allows partial withdrawals.
Premature Closure of Mahila Samman Savings Certificate
The Mahila Samman Savings Certificate account can be closed prematurely only under the following circumstances:
- If you close the account six months after opening without providing a reason, you will receive an interest rate of 5.5% per annum.
- In the case of the account holder’s death.
- In extreme situations, such as the account holder suffering from a life-threatening illness.
Documents Required to Open Mahila Samman Savings Certificate Account
To open a Mahila Samman Savings Certificate account, you need to submit the following documents:
- Application form
- Know Your Customer (KYC) documents such as PAN card, Aadhaar card, voter ID card, or driving license
- KYC form for new account holders
- Salary slip (if applicable)