The central government introduced the Mahila Samman Savings Scheme in the 2023 Budget to promote saving and investing among women and girls. This scheme offers better returns than traditional fixed deposits. The deadline for enrolling in this scheme is approaching, set for 31 March 2025. Women can start investing with as little as Rs 1,000, and they can open accounts in their own names, while parents or guardians can set up accounts for minor girls.
Better interest rates than fixed deposits
The Mahila Samman Savings Scheme provides an attractive interest rate of 7.5% per annum on deposits. This interest is compounded quarterly and is credited when the account is closed. This rate surpasses that of the current 2-year bank fixed deposits. The minimum investment required to join this scheme is Rs 1,000 (in increments of Rs 100), with a maximum limit of Rs 2,00,000 across all accounts. Additionally, there must be a minimum gap of 3 months between opening accounts.
Here’s how to get started with your account
You can open a Mahila Samman Savings Scheme account at various banks, including the post office. Some of the banks where you can do this are Bank of Baroda, Canara Bank, Bank of India, Punjab National Bank, and Union Bank of India. To set up your account, simply visit the nearest branch of one of these banks or the post office.
Here are the withdrawal guidelines
Account holders are allowed to withdraw up to 40% of their eligible balance after one year from the account opening date. In certain situations, early closure of the account is allowed, such as in the event of the account holder’s death or for compassionate reasons like a life-threatening illness of the account holder or the death of a guardian, as long as the necessary documents are provided.
In these circumstances, the scheme’s interest rate will apply to the principal amount. If an account is closed without a specific reason after six months of being opened, the interest rate will be set at 5.5%.
