Mahila Samman Savings Certificate Scheme: Eligibility, How to Apply, Interest Details

Major Features of the Mahila Samman Savings Certificate Scheme

• For women and girls: Only women or guardians for minor girls can open an account.
• Limited time offer: Accounts can be opened only until March 31, 2025.
• Fixed tenure: The investment period is two years.
• Attractive interest rate: Offers a fixed interest rate of 7.5% per year compounded quarterly.
• Flexible investment: Minimum deposit of Rs. 1,000 and maximum of Rs. 2,00,000 in multiples of Rs. 100.
• Partial withdrawal allowed: Account holders can withdraw up to 40% of the balance during the two-year period.
• Guaranteed returns: Since it's backed by the Government of India, the return on your investment is guaranteed.
• Tax Benefits: You only pay tax on the interest you earn from the Mahila Samman Savings Scheme if the interest amount is more than Rs.40,000 in a year (or Rs.50,000 for senior citizens). Since the maximum interest earned on a Rs.2 lakh investment for two years is less than Rs.40,000, no tax is deducted at source (TDS) from the interest you receive.

Eligibility to Invest in the Mahila Samman Savings Certificate Scheme

• The women/girl candidate should be a resident of India.
• The scheme is only available to invest for women and guardians of a minor girl child.
• Any Indian woman can invest in this scheme.
• There is no age limit to invest in this scheme.

Payment On Maturity

Your deposit will mature (be ready to withdraw) after two years from the day you make it. The bank will then give you back the money you deposited (the balance) at that time.

When figuring out the total amount you'll get back (maturity value), they'll round up any leftover amount that's less than a rupee to the nearest whole rupee. Here's how they do it:

• If the leftover is 50 paise (half a rupee) or more, they'll count it as a full rupee.
• If the leftover is less than 50 paise, they won't include it in your final amount.

Steps to Apply for the Mahila Samman Savings Certificate Scheme

At the Post Office:

• Head to your nearest post office or a bank that offers the Mahila Samman Savings Certificate.
• Grab an application form there or download it from the official website.
• Fill out the form completely and gather any documents they need.
• There will be a section for some statements you need to confirm (declaration) and who you want to receive the money if something happens to you (nomination). Fill those out too.
• Once everything is ready, hand in the form along with your initial investment amount.
• You'll get a certificate as proof that you've invested in the Mahila Samman Savings Certificate scheme.

At the Bank:

• Visit any branch of a bank that offers the scheme. Some popular ones include the State Bank of India, Bank of Baroda, Canara Bank, and Central Bank of India. You can find a full list on the Ministry of Finance website.
• Fill out an application form. The bank will give you one to complete with your details like name, address, PAN number, and how much you want to invest.
• Submit the form with some documents. You'll typically need ID proof (like Aadhaar card) and PAN card. They might also ask for proof you live where you say (like an electricity bill).
• Make your deposit. Once your application is approved, you can deposit the money. You can use cash, a cheque, or even transfer it online.
• Get your certificate. After your deposit is processed, the bank will give you a Mahila Samman Savings Certificate. This is like a receipt for your investment, so keep it safe.

Documents Needed to Apply for the Mahila Samman Savings Certificate

• Completed application form: You can usually get this form at your nearest post office or bank offering the scheme, or download it from their website.
• KYC documents: These are documents that prove your identity and address. Examples include an Aadhaar card, Voter ID, Driver's licence, and PAN card.
• Pay-in slip: This slip is used to deposit your investment amount. You might get this along with the application form.

Mahila Samman Savings Certificate Interest Calculation

Say that you invest Rs.2 lakhs (200,000 rupees) in this scheme. The interest rate is a fixed 7.5% every year. This means you'll earn interest on your money over the two years.

• In the first year, you'll earn Rs.15,000 as interest.
• In the second year, you'll earn a bit more interest, around Rs.16,125, because you're also earning interest on the interest you made in the first year (compound interest).

Adding up your initial investment and the interest earned over the two years, you'll get a total of Rs.2,31,125.

Premature Closure of Mahila Samman Savings Certificate

Usually, you have to wait two years to close the account. However, there are some exceptions:

• If the account holder dies (you'll get interest on the amount you originally deposited).
• In very special cases, like a guardian's death (with proof) or your own life-threatening illness.
• You can also close it after 6 months, but you'll only get 5.5% interest instead of the full 7.5%.

Frequently Asked Questions: