Govt's new small savings scheme for women, check interest and other details

The government uses small savings schemes as investment instruments to encourage citizens into long-term savings. Public Provident Fund (PPF), Senior Citizens Small Savings Scheme (SCSS), National Savings Certificate (NSC), and Sukanya Samriddhi Yojana (SSY) are a few of the well-liked investment choices under small savings plans. They are backed by the government and offer set returns in addition to tax advantages. Specifically created for female investors, the Mahila Samman Saving Certificate is a new small saving scheme unveiled in Budget 2023 to promote investments. The plan has been enforced by the government.Here is all you need to know about this new scheme.

Who can open this savings account?

A woman can open this savings account on her own behalf, or a girl's guardian can do so on her behalf. Prior to March 31, 2025, women investors must complete Form I.

What is the Deposit Limit?

The minimum investment amount is Rs 1000, and any quantity in multiples of 100 rupees may be put in an account with no further deposits permitted. The maximum investment authorised under the plan is Rs 2 lakh.

What is the Interest rate?

Deposits made through this programme will earn interest at a rate of 7.5% annually. The account will be credited with the quarterly compounded interest.

Withdrawal rules

The account holder may withdraw up to 40% of the amount by completing a Form-3 application after the first year from the date of account opening but before the account matures.

How to get payment on Maturity of the account?

The deposit matures two years following the deposit date, at which point the account holder may request the remaining funds by completing a Form-2 application to the accounts office. For calculating the maturity value, every fraction of a rupee that is not precisely one rupee will be rounded up to the closest rupee. Every amount that is fifty paisa or more counts as one rupee in this computation; any quantity that is less than fifty paisa is not taken into account.

Premature closure of account

• On the account holder's death
• The post office or bank in question may, after careful documentation, by order, and for reasons that will be documented in writing, permit the account to be prematurely closed when it determines that the operation of the account is putting the account holder through undue hardship due to extremely compassionate circumstances, such as medical support for the account holder's life-threatening illnesses or the death of the guardian.
• Interest on principle will be paid at the rate in effect for the Term for which the account has been kept when an account is prematurely closed.
• Any time after six months from the date the account was opened, an account may be prematurely closed for any cause other than those indicated. In this instance, the amount in the account would only be eligible for interest at a rate that was 2% lower than the rate provided in this Plan.