Know All About Mahila Samman Savings Scheme

Have you heard about the new Mahila Samman Saving Scheme that was announced in the 2023-24 budget speech by Smt. Nirmala Sitharaman, the Union Finance Minister? If you want to avail the benefits of the plan, read on to know all about the scheme, in this post.  

The latest savings scheme dedicated for females, the Mahila Samman Saving Certificate, is now available from April 1st 2023 for you to procure from the nearest post office. The scheme was introduced to honour 75 years of independence (Azadi ka Amrit Mahotsav) and is available at a fixed interest rate of 7.5% per annum.

This one-time investment plan is available for a term of two years that is starting from 2023 April and will end in 2025 March. The savings certificate comes with a maximum invested amount of up to INR 2 lakh and can only be bought on behalf of a girl child or by women.

Let’s discuss the features of Mahila Samman Savings Scheme 2023 here.

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Mahila Samman Savings Certificate – Features

1. Mahila Samman Savings Certificate is a Govt. of India policy – This is a small plan of savings that has the government backing and thus is regarded as a safe scheme without any risk.
2. Eligibility of Mahila Samman Savings Certificate – This scheme is available only for girl children and women. The custodian of a minor girl can open this account on her behalf or it can be availed by a woman only.
3. Deposit Limit of Mahila Samman Savings Certificate – The minimum and maximum deposit amount that can be invested under the Mahila Samman Savings Certificate is INR 1,000 and INR 2 lakh respectively. A female account holder under this can open a second account only after a gap of minimum three months of opening the first account.
4. Mahila Samman Savings Certificate Maturity – The plan matures in two years from the date of issuance of the certificate and the amount is offered to the investor after maturity.
5. Mahila Samman Savings Certificate Withdrawal – Withdrawal facility of a partial amount is offered under the scheme after one year of the account being active. Hence, a withdrawal of 40% balance is offered after a year under the scheme.
6. Tax Benefits of Mahila Samman Savings Certificate – Although tax benefits are available for small savings schemes under 80C section of Income Tax, the structure of taxation of this plan is not decided yet.

Interest Rate of Mahila Samman Savings Certificate Scheme

The Mahila Samman Savings scheme is available at a fixed rate of interest of 7.5% per annum, which is much higher as compared to bank FDs and many other savings schemes. Under this plan, the interest gets credited quarterly, which is offered to the investor at maturity.

Mahila Samman Savings Certificate – Premature Closure

This scheme allows the account holder to close the scheme prematurely before two years of the policy completion term.

Below are the situations in which the premature account closure is allowed:

• In case of death of the account holder
• The investment can be withdrawn on a compassionate ground
• In case the account holder is diagnosed with a critical disease
• If you close the account after a term of 6-months of its opening and without any reason, you would get an interest rate of 5.5% rather than the actual interest rate of 7.5%
• In case of the guardian’s death, the amount can be claimed by the girl on whose name the account is opened. However, she has to produce relevant documents. The interest, in this case, is offered on the invested sum

Process to Open a Mahila Samman Savings Account

Here’s are steps to open an account of Mahila Samman Savings Certificate:

• Go to the Indian Post website and download the form of application. Alternatively, you can go to the nearest branch of a Post Office personally to collect the form
• Fill the PO address in the particular section
• Submit the name of the account holder in the allotted space and remark the account name
• Now, fill other details such as type of account along with other personal and payment details
• Also, you must fill the details of nomination declaration
• Now, submit the application form and the documents required
• Pay the amount in the nearest Post Office either through cheque or cash
• You will get a Mahila Samman Saving Patra as investment proof. Keep it safe

Mahila Samman Savings Certificate – Documents Required

• Form of Application
• Documents for KYC (like Voter ID, Aadhaar card, PAN card and driving license)
• For new investors, you would need KYC form as well, and
• Payment Slip

Mahila Samman Savings Certificate Calculation

So, what are the benefits of opening the scheme of Mahila Samman Savings Certificate? How do you calculate the returns of investment under this scheme? Let’s take a look. For instance, let’s say you invested INR 2 lakh under this plan with an interest rate of 7.5% per annum that is fixed for both the years of the policy tenure. So, this means that in the initial year of your investment, you would receive INR 15,000 as interest amount on the investment and the interest earned would be INR 16,125 in the 2nd year. Hence, by the end of policy term, which is two years, you would earn a total return of 31,125 interest. Hence, your total amount would be INR 2,31,125 at maturity.

Mahila Samman VS. Sukanya Samriddhi Yojana

Let’s compare Mahila Samman Savings Certificate and Sukanya Samriddhi Yojana (SSY) to see which one is a more beneficial plan for girls.

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