Maha Saraswati Scheme

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Particular	Details
Eligibililty	Minor / Student aged 6 months and above Minor / Student singly aged 10 years Minor / Student jointly with parent or Guardian By parent / Guardian on behalf of Minor Student (In all cases, there should be KYC compliance while opening the account)
Monthly Deposit	Minimum of Rs. 100/-
Period	Minimum 36 months & Maximum 120 months
Rate of Interest	The scheme shall carry rate of interest as that of regular term deposit scheme. As this scheme is a variant of Recurring Deposit, TDS as per rule will be applicable to Mahasaraswati Scheme also
Additional Features	Preferential treatment in Educational Loan with - concession in rate of interest up to 0.25% for normal Mahasaraswati A/c holders, 0.50% for Below Poverty Line (BPL) beneficiaries. Free VISA international ATM card (the customer has to open a Yuva Yojna Account and he/she will get the benefit of Free International Visa ATM cum Debit card.)
Maturity of Deposit	The deposit amount is repayable on the date of maturity i.e. when the agreed period is over or one month after the credit of last installment which ever is later, along with the interest.
Premature Withdrawal	Premature withdrawals may be allowed as per regular term deposit scheme, and per rules.

Penalty for Non Payment / Late Payment of Installment :
The penalty for late payment of a Mahasaraswati Installment will be as per Central Office guidelines in force for Recurring Deposits will be recovered from the maturity proceeds at the time of closing the account. This penalty amount will be credited to P/L Interest General.

Closing of Mahasaraswati Account:
The Mahasaraswati Account can be closed on maturity by payment of the maturity value to the account holder. In case of his/her death the amount will be paid to the legal heirs and / or nominee subject to the other formalities that are required under settlement/ payment of claims.

Frequently Asked Questions

1. What is the Maha Saraswati Scheme?

The Maha Saraswati Scheme is a recurring deposit scheme offered by Bank of Maharashtra, specially designed for minors and students to encourage savings for future educational needs.

2. Who is eligible to open a Maha Saraswati account?

The scheme is available for:

Minors/students aged 6 months and above
Students aged 10 years who can operate the account individually
Joint accounts with parents/guardians
Accounts opened by parents/guardians on behalf of minors

3. What is the minimum monthly deposit required?

The minimum monthly deposit amount starts from ₹100, making it affordable for students and parents to build savings gradually.

4. What is the tenure of the scheme?

The deposit tenure ranges from a minimum of 36 months to a maximum of 120 months.

5. What interest rate is offered under the scheme?

The scheme offers interest rates similar to the bank’s regular term deposit rates applicable at the time of investment.

6. Are there any benefits for education loans?

Yes, account holders receive preferential treatment when applying for education loans, including the following:

Interest concession up to 0.25% for regular customers
Up to 0.50% concession for BPL beneficiaries

7. Is a debit card provided with this scheme?

Yes, customers can get a free international VISA ATM cum debit card by opening a Yuva Yojana account linked to the scheme.

8. When will the maturity amount be paid?

The maturity amount is payable after completion of the agreed tenure or one month after the last installment is credited, whichever is later.

9. Is premature withdrawal allowed?

Yes, premature withdrawal is permitted as per the bank’s rules applicable to regular term deposit schemes.

10. What happens in case of missed or delayed installments?

A penalty may be charged for late payment of installments, as per the bank’s recurring deposit guidelines.

11. Is TDS applicable on this scheme?

Yes, since it is treated as a term deposit variant, TDS is applicable as per prevailing income tax rules.

12. Can the account be closed before maturity?

Yes, the account can be closed on maturity or earlier (subject to rules). In case of the account holder’s death, the amount is paid to the nominee or legal heirs.

13. What are the key benefits of the Maha Saraswati Scheme?