Bank of India rolls out Mahila Samman Savings Certificate facility: How to invest, interest rate and more

This is a one-time small savings scheme that is available for a period of two years till March 2025.

The Mahila Samman Savings Certificate allows for a maximum deposit of Rs 2 lakh.

The tenor of the scheme is 2 years. Deposits made under this scheme earn an interest rate of 7.5 percent per annum and that will be compounded quarterly and credited to the account.

Individual girls or women can open a Mahila Samman Savings Certificate, or a guardian can open an account on behalf of a minor girl.

The minimum investment required is Rs 1,000 and any sum in multiples of Rs 100 can be deposited, up to a maximum limit of Rs 2 lakh. Individuals can open multiple accounts with a gap of three months between each account, subject to the overall investment cap of Rs 2 lakh.

All earnings under the Mahila Samman Savings Certificate are taxable as per existing income tax provisions. However, TDS (Tax Deducted at Source) is not deducted under the scheme.

The scheme also provides a nomination facility. In the event of the account holder's death, the account can be closed prematurely. Premature closure can also be availed in cases of extreme compassionate grounds, such as life-threatening diseases of the account holder or the death of the guardian, where the operation or continuation of the account causes undue hardship to the account holder.

In the case of premature closure under the above conditions, the interest on the principal amount will be payable at the rate applicable to the scheme, i.e., 7.5 percent. Account closure can also be requested by the customer in case of emergencies or at their discretion, with a penalty of 2 percent after six months from the date of account opening, and the applicable interest rate will be 5.5 percent. Account holders can also make partial withdrawals, up to 40 percent of the eligible balance, after one year from the date of opening the account, Bank of India stated.