Mahila Samman Savings Certificate: Empowering Women's Financial Growth

Introduction to the Scheme Launched on April 1, 2023, the Mahila Samman Savings Certificate is a government initiative designed to encourage savings among women and girls. Eligibility and Account Opening Women can open an account in their name, and guardians can open accounts for minor girls. Accounts can be opened at post offices or authorized banks.

Deposit Limits Minimum deposit: INR 1,000. Maximum deposit: INR 2 lakh across all accounts. Multiple accounts allowed with a 3-month gap between openings. Interest Rate and Compounding Offers 7.5% annual interest, compounded quarterly. Effective interest rate is about 7.7%, credited quarterly and paid at maturity.

Maturity and Withdrawals The scheme matures in 2 years. Partial withdrawals are allowed, and premature closure is permitted under specific conditions. Premature Closure Conditions Allowed upon account holder’s death, guardian's death, or a life-threatening illness. After 6 months, closure is allowed with a reduced interest rate of 5.5%.

Tax Benefits No Tax Deducted at Source (TDS) for interest up to INR 32,044 annually, as per Section 194A of the Income Tax Act. Documents Required Application form, KYC form, and identification documents like Aadhaar Card, Voter ID, Driving License, or PAN Card.