Bank of India rolls out Mahila Samman Savings Certificate scheme

Bank of India (BoI) has rolled out Mahila Samman Savings Certificate scheme.

The scheme was announced by Union Finance Minister Nirmala Sitharaman during her Budget speech this year. The scheme offers an interest rate of 7.5 per cent per annum, compounded quarterly.

Under the scheme, 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 account will mature after two years from the date of opening. Accounts under this scheme can be opened until March 31, 2025.

Also read: Mahila Samman Savings Certificate: Should you invest?

According to a statement by the bank, while minimum investment is ₹1,000, any sum in multiples of ₹100 can be deposited, up to a maximum limit of ₹2 lakh.

Individuals can open multiple accounts with a gap of three months between each account, subject to the overall investment cap of ₹2 lakh, per the statement.

Account closure can be requested by the customer in case of emergencies or at their discretion, with a penalty of 2 per cent after six months from the date of account opening, and the applicable interest rate will be 5.5 per cent, the bank said. 

Account holders can also make partial withdrawals, up to 40 per cent of the eligible balance, after one year from the date of opening the account.

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

According to the Bank of India’s MD & CEO Rajneesh Karanatak, Bank of India is the first bank to operationalise this scheme.

So far, only post offices were authorised to open accounts under the Mahila Samman Savings Certificate.

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