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.
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
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.
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.
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What is the interest rate of the Mahila Savings Certificate?
Mahila Samman Saving Certificate offers a fixed interest rate of 7.5% p.a.
Are there any tax benefits of the Mahila Samman Saving Certificate?
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.
What is the tenure of the Mahila Samman Saving Certificate?
The tenure is 2 years, starting from April 2023 to 2025.
What is the minimum investment option for Mahila Samman Patra?
The minimum investment amount for this scheme is not known, yet.
What is the maximum investment in Mahila Samman Patra?
The maximum amount you can invest is ₹2 Lakh.
Is Mahila Samman Certificate better than PPF and NSC?
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.
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