Bank of India rolls out Mahila Samman Savings Certificate: Features, interest rate, other key things to know

State-run Bank of India on Wednesday launched the Mahila Samman Savings Certificate scheme at all its branches. The Mahila Samman Savings Certificate is a government-guaranteed limited-period small savings scheme aimed at empowering women and fostering their financial inclusion. 

Bank of India is the first lender to operationalise the Mahila Samman Savings scheme at all its branches, MD and CEO Rajneesh Karnatak said.  

All earnings under the Mahila Samman Savings Certificate will be taxable as per existing income tax provisions. However, no tax will be deducted at source (TDS).

Here are some of the key things to know about the Mahila Samman Savings Certificate scheme: 

What is Mahila Samman Savings scheme?

Under the scheme, individual girls or women can open an account, or a guardian can open one on behalf of a minor girl. 

Mahila Samman Savings Certificate scheme interest rate

The scheme, introduced in the Union Budget of 2023-24,the Mahila Samman Savings Certificate scheme offers interest at the rate rate of 7.5 per cent per annum, compounded quarterly.

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Until now, only post offices were authorised to open accounts under the Mahila Samman Savings Certificate. The government has allowed scheduled banks to offer this facility, and Bank of India is the first bank to roll out this scheme.

What is the minimum investment required to buy Mahila Samman Savings Certificates? 

One is required to invest a minimum Rs 1,000 to participate in the Mahila Samman Savings Certificate scheme.

Is there a maximum investment limit on Mahila Samman Savings Certificate scheme?

Any sum in multiples of Rs 100 (subject to minimum investment of Rs 1,000) can be deposited in the scheme up to Rs 2 lakh.

Are multiple accounts allowed in Mahila Samman Savings Certificate scheme?

Individuals can open multiple accounts at a gap of three months, subject to the overall investment limit of Rs 2 lakh.