Mahila Samman Savings Certificate is a one-time, new small savings scheme for women beneficiaries. The scheme is open for investment until March 2025, for a two-year period.
In the current fiscal year, the government aims to allocate a reduced amount of funds towards small savings schemes due to the expectation of a shift in investor preference towards alternative options such as mutual funds and stocks, according to a CNBC TV18 news report.
Further it said, if interest rates start to decline, the government may be exposed to an interest risk with the Mahila Samman Savings Certificate, which has a fixed coupon of 7.5% for two years.
Therefore, it’s possible that the government won’t renew Mahila Samman Savings Certificate when it expires in March 2025, as per the CNBC report.
Here is a closer look at the important features of the Mahila Samman Savings Certificate.
Mahila Samman Savings Certificate
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Deposit details
- Minimum Rs.1000/- and maximum Rs.200000/-
- The deposit amount must be in multiples of Rs.100/-
- Only one deposit is allowed in one account.
- There is no cap on number of accounts for a single depositor subject to condition that the cumulative amount in all the accounts under this scheme shall not exceed ?200000/-
- A time gap of 3 months to be maintained between opening of two accounts under this scheme for the same customer.
- Interest details
- The scheme has rate of interest 7.5% per annum.
- The interest shall be compounded quarterly and credited to the account.
- The eligible interest shall be paid at the time of closure/pre-closure/partial withdrawal of the account.
- Maturity details
- The deposit under this scheme matures on completion of 2 years from the date of deposit.
- Partial withdrawal
- Maximum up to forty percent (40%) of eligible balance can be withdrawn after expiry of one year from the date of deposit.
- The partial withdrawal facility is available only once before maturity.
- Pre-mature closure
- Pre-mature closure is permitted in the following cases, namely:
- On the death of the account holder.
- Medical support in case of life-threatening disease of the account holder.
- Death of the guardian resulting in undue hardship in operation or continuation of the account.
- For the above categories of pre-closures, interest on principal amount shall be payable at the prescribed rate of interest for the scheme.
- For reasons other than the above, pre-mature closure may be allowed any time after the expiry of 6 months from the date of opening.
- Interest in case of such pre-mature closures shall be payable at lower by 2% than the prescribed Rate of Interest for the scheme.
