Mahila Samman Savings Certificate: All You Need to Know

Time has changed drastically. People are now not just investing in their future but also in the future of the girl child. Where a girl child was considered to be a burden before, today people understand the need to educate them and build a good future for them.

With this change, there are various mutual funds for children, especially girl children. Aimed at different timelines and goals, these funds help you to secure the future of your child and ensure them a better life. But with this, various government-backed schemes are also launched. One such is the Mahila Samman Savings Certificate.

Started in 2023, this is a small and special savings scheme for women and girls. This offers flexibility and guaranteed returns, which are essential in the volatile market. But do you know the exact details of the same? Well, let us explore all the details linked to the Mahila Samman Savings Certificate here in this guide.

What is Mahila Samman Savings Certificate Scheme?

The Mahila Samman Savings Certificate scheme is a small savings initiative. It was introduced by the Government of India in the Union Budget 2023. It is designed exclusively for women and the girl child.

The main aim of this scheme is to encourage short-term savings with guaranteed returns. If you want to invest in this scheme, you would need to visit your nearest post office where it can be started. It comes with a fixed maturity of 2 years, which makes it even safer. 

This is quite a simple investment that requires no consistent monitoring as compared to the market-linked mutual fund or stock investment.

But before we explore the features of the same, let us know the key details that define this scheme in an even better manner.

Mahila Samman Savings Certificate Scheme Details

Eligibility for Mahila Samman Savings Certificate

• Applicants must be Indian citizens.

• The account should be for women with a girl child only.

• Guardian can open for a minor girl child.

• There is no age limit to apply.

Key Features of Mahila Samman Savings Certificate

When you are planning to invest in the Mahila Samman Savings Certificate, it is important that you check its details as well. These are not complicated in nature and also allow you to make sure that you understand the key terms, too. 

So, here are the basic features or conditions that you must know of:

1. Eligibility

The scheme is designed exclusively for women and girl children. If the girl child is a minor, then the guardian of the child can open the account under the scheme for the child. This ensures inclusivity and financial empowerment for women of all age groups.

2. Deposit Limit

You can open it with a minimum amount of Rs. 1,000. Once done, the further deposits must be in multiples of Rs. 100. The maximum deposit allowed is Rs. 2 lakh per individual across all Mahila Samman Savings Certificate accounts, including those opened for minor girls.

3. Tenure

The deposit matures after 2 years from the date of account opening. This is a short-term savings scheme. So, it is good for those who are looking to invest for a short time and get the funds to meet some planned expenses in the near future. Also, it offers you an assured investment at this time.

4. Interest Rate

The Mahila Samman Savings Certificate interest rate is fixed. It is 7.5% per annum. It is compounded quarterly. If you see, this return is more than what you get on the fixed deposits as of now. This makes it an attractive and reliable savings choice for women.

5. Partial Withdrawal

One of the flexible features of this scheme is the option for partial withdrawal. This is valid after the completion of 1 year from account opening. You can withdraw up to 40% of the eligible balance. This allows you to have easy access to funds, which is important.

6. Taxation

There is no tax benefit under Section 80C. But it is important to note that the interest earned is taxable. It is as per the investor’s income tax slab. No TDS (Tax Deducted at Source) is applied in general. But if the annual interest income exceeds Rs. 40,000 (Rs. 50,000 for senior citizens), then there will be TDS.

7. Availability

The scheme started in April 2023. It was open for deposits until March 31, 2025. The deposits were made through the post office branches only. Since there is no information on extension, the details of whether a new account can be opened cannot be confirmed.

Benefits of Mahila Samman Savings Certificate

The Mahila Samman Savings Certificate scheme is more than just a savings tool. It is a great way to secure the future of your girl child with ease. Some of the key benefits of the scheme are as follows:

• A secure scheme that is designed and backed by the government.

• High rate of interest, which is at 7.5% PA.

• Short-term investment plan with 2 2-year maturity only.

• Easy and partial withdrawal of 40% of the amount after 1 year of completion.

• Make an investment with as low as Rs. 1000 only.

• Helps you build meaningful savings for the future.

• Booster for women's financial freedom and safety.

• Good for financial inclusion and helping females educate on finances.

How to Apply for the Mahila Samman Savings Certificate

So, now that you know all the details linked to the Mahila Samman Savings Scheme Certificate, you must be thinking about how to apply. Well, this is quite simple. The steps that you would you would need to follow are as below:

Step 1: Get the Form

Start by getting the form for the scheme. You can download it online from the official Post Office website. Also, you can visit your nearest branch and get the form as well. 

Step 2: Add Details

Now that you have the form, fill it out. Mention all the key details like contact, number, address, nomination, and the rest. Mention the amount of the deposit as well.

Step 3: Complete KYC

Here, you would need to add all the necessary KYC documents. Generally, it is Aadhaar, PAN, and passport-size photographs. Ensure the contact you share is linked to Aadhar. If not, change the number in Aadhar to the one you are using now.

Step 4: Check and Submit

Once done, check all the details. Ensure that there are no mistakes. Submit the completed form along with documents to the post office or bank branch.

Step 5: Deposit Amount

Deposit the chosen investment amount in cash or cheque.

Step 6: Get Certificate

Now you have completed the process. You will now get the Mahila Samman Savings Certificate as proof of your investment.

Conclusion

The Mahila Samman Savings Certificate was a limited-period scheme. It was mainly introduced to support women's empowerment and boost their financial inclusion. This is a simple savings scheme that offers guaranteed returns. This ensures the safety of the future and also supports meeting short-term goals as well.

But if you are looking to explore some other schemes that can offer you higher returns, visit Rupeezy. Explore all the options, use the tools and calculators, connect with experts, and plan your investment.

So, prepare to make the right investment call and boost your returns over time. 

FAQs

1. Can I open more than one Mahila Samman Savings Certificate account?

Yes, a second account can be opened. But for this, you need to maintain a minimum gap of three months. Also, you cannot exceed the overall amount of Rs. 2 lakh for all accounts combined.

2. What happens if I withdraw money before one year?

Withdrawals are not permitted before completing one year. After one year, partial withdrawals up to 40% of the balance are allowed.

3. Can NRIs invest in the Mahila Samman Savings Certificate?

No. NRIs are not eligible. If you are a citizen of India and a female, then only you can open the account.

4. How is the maturity amount paid under the scheme?

The maturity value, including principal and accumulated interest, is paid directly to the account holder at the post office or designated bank after two years.

5. What happens if the account holder passes away before maturity?

In case of the death of the account holder, the full deposit, along with accrued interest, is released to the nominee or legal heir.