Mahila Samman Savings Certificate Scheme -Interest Rate, Benefits and Eligibility
The Mahila Samman Savings Certificates, a fixed-income investment programme explicitly launched for women and girl-child, is valid from April 2023 to March 2025 and offers an annual interest rate of 7.5% for investments up to ₹2 Lakh. The minimum investment amount is capped at Rs.1,000. The scheme was announced as part of the Union Budget 2022-23 and is a one-time investment opportunity that offers a fixed interest rate higher than other investment options, such as Public Provident Fund (PPF), National Savings Certificate (NSC), and fixed deposits.
The primary aim of this scheme is to encourage women’s empowerment by providing a secure and reliable investment opportunity.
Key Features of Mahila Samman Savings Patra
1. Risk-Free Investment
It is a fixed-income saving scheme backed by the government. Thus, the scheme does not carry any market risk.
2. Eligibility Conditions
Only girl children and women are allowed to purchase the Mahila Samman Saving Certificate.
3. Investment Term
This one-time investment option, available for the period 2023 to 2025, has a two-year investment term.
4. Competitive Interest Rate
It offers a fixed interest rate of 7.5% per annum, which is higher than the majority of fixed-income savings plans.
5. Investment Limit
The maximum investment limit under this scheme is ₹2 Lakh. However, no minimum limit has been specified.
6. Tax Benefits
Small savings schemes generally offer maximum tax savings under Section 80C. However, the tax structure for this particular scheme is yet to be announced.
7. Premature Withdrawals
A partial withdrawal facility is available.
8. Convenient Application Process
You can apply for the Mahila Samman Saving Certificate by visiting your nearest post office or an authorised bank.
Also Read
Who Can Invest in Mahila Samman Savings Certificate?
Only women and girl children are eligible to invest in this small savings scheme.
How to Invest in the Mahila Samman Savings Certificate Scheme?
- Step 1: Visit your nearest post office or a bank that offers the scheme.
- Step 2: Ask for an application form for Mahila Samman Bachat Patra Yojana.
- Step 3: Fill out the form.
- Step 4: Submit the application form along with supporting documents.
- Step 5: Choose the deposit amount and indicate the mode of deposit – cash or cheque.
- Step 6: You will get a certificate as proof of your investment.
Mahila Samman Savings Certificate Interest Rate
Mahila Samman Savings Certificate has a fixed interest rate of 7.5% per annum on deposits of up to ₹2 Lakh for a tenure of two years.
Let us understand it better with an example. Let us assume that Manju has invested ₹2 Lakh in this scheme for a tenure of two years. Assuming the compounding frequency to be quarterly, Manju’s earnings from interest at the end of the first year will be ₹15,427. So, the amount accumulated is ₹2,15,427.
At the second year’s end, Manju’s interest earnings will be ₹16,617. This means the amount at the time of maturity will be ₹2,32,044. So, Manju’s earnings from this scheme after 2 years will be ₹(2,32,044-2,00,000) = ₹32,044.
Disclaimer: The above example is for reference purposes only. The compounding frequency has not yet been announced by the government.
What Happens for Premature Closure of Mahila Samman Savings Certificate?
You can close your Mahila Samman Savings Certificate account before the maturity period of 2 years based on certain situations:
- If closed after 6 months from the date of account opening without citing any reasons, an interest rate of 5.5% would be provided to the account holder
- In the case of the death of the account holder
- In the case of extreme compassionate grounds, such as a life-threatening disease of the account holder and death of the guardian upon production of relevant documents. In such a case, the interest will be paid on the principal amount
Mahila Samman Savings Certificate Vs. Sukanya Samriddhi Yojana
Both Mahila Samman Savings Certificate and Sukanya Samriddhi Yojana (SSY) are small savings schemes dedicated to women and can be considered viable investments. However, there are major differences that you should know of.
| Mahila Samman Savings Certificate | Sukanya Samriddhi Yojana |
| Dedicated to women of all ages | Dedicated to girl-child below 10 years |
| Offers 7.5% interest rate | Offers 8% interest rate |
| The maturity period is 2 years | The maturity period is 21 years or upon the marriage of the girl-child after attaining the age of 18 years |
| Minimum deposit amount of Rs.1,000 | Minimum deposit amount of Rs.250 |
Tax Benefits
The taxation structure of Mahila Samman Patra has not been specified, yet. However, most saving schemes offer deductions of up to ₹1.5 Lakh under Section 80C of the Income Tax Act.
Final Word
The introduction of the Mahila Samman Savings Certificate is a positive step towards financial inclusion and empowering women in India. Along with inducing a habit of forced savings, it is also giving a good return of 7.5% p.a.
However, if you want to maximise your returns potential, you could consider investing in Navi Mutual Fund schemes, starting at just ₹10, and stay invested for as long as possible. Our schemes are low-cost, transparent, technology-backed, and highly liquid. To start your investment journey, download the Navi App today.
FAQs
Mahila Samman Saving Certificate offers a fixed interest rate of 7.5% p.a.
The taxation structure of this scheme is not yet known. However, most small saving schemes offer tax benefits of up to ₹1.5 Lakh under section 80C of the I-T Act, 1961.
The tenure is 2 years, starting from April 2023 to 2025.
The minimum investment amount for this scheme is not known, yet.
The maximum amount you can invest is ₹2 Lakh.
This scheme offers an interest rate of 7.5% p.a. over a tenure of just 2 years. The interest rates are higher than PPF (7.1%) and NSC (7%). Moreover, it has a partial withdrawal provision, which is unclear for the other two. However, each investment option has unique features and benefits. Investors must consider their investment goals before making an investment decision.
