diff --git a/electrum b/electrum
index 31d1c50d8..3510b3d4f 100755
--- a/electrum
+++ b/electrum
@@ -166,7 +166,8 @@ def run_non_RPC(config):
     elif cmdname == 'create':
         password = password_dialog()
         passphrase = config.get('passphrase', '')
-        seed = Mnemonic('en').make_seed()
+        seed_type = 'segwit' if config.get('segwit') else 'standard'
+        seed = Mnemonic('en').make_seed(seed_type)
         k = keystore.from_seed(seed, passphrase)
         k.update_password(None, password)
         storage.put('keystore', k.dump())