Mahila Samman Savings Certificate is a government-endorsed post office small savings scheme created exclusively for women and girls, offering them a reliable and beneficial investment avenue. This initiative, introduced to strengthen financial inclusion and women’s economic independence, has a two-year fixed duration, enabling secure financial growth within a brief timeframe.
If you plan to invest in this small savings scheme, then be mindful of the approaching deadline. Prospective investors can participate in the Mahila Samman Savings Certificate scheme until March 31, 2025.
Mahila Samman Savings Certificate: Eligibility
Mahila Samman Savings Certificate scheme maintains strict eligibility criteria, permitting only women and girls to participate. Additionally, it allows guardians to make investments for minor girls. This focused strategy supports women’s financial autonomy whilst enabling young girls to begin building their investment portfolio at an early stage.
Mahila Samman Savings Certificate: Interest Rate, Deposit Requirement
Mahila Samman Savings Certificate investors need to deposit a starting amount of Rs 1,000. The scheme caps the maximum investment at Rs 2 lakh per person.
The Mahila Samman Savings Certificate provides a 7.5% interest rate per annum. The interest is compounded quarterly and credited in account and paid at the time of closure of account.
Mahila Samman Savings Certificate offers convenient withdrawal provisions. Account holders can access up to 40% of their deposited funds after completing one year. The complete amount, including the principal and accumulated interest, becomes available when the two-year tenure concludes.
Mahila Samman Savings Certificate: Tax
The interest earnings must be declared under “Income from Other Sources” in tax returns. The Mahila Samman Savings Certificate investment does not qualify for tax benefits under Section 80C of the Income Tax Act. This factor warrants consideration when evaluating this scheme against other tax-advantaged investment alternatives.
A comparison of two-year fixed deposit interest rates across major banks by ET reveals:
- For general citizens, State Bank of India (SBI) extends a 6.80% interest rate, whilst senior citizens receive an additional 50 basis points for periods between 1 year and under 2 years.
- HDFC Bank offers general citizens a 7.25% interest rate on fixed deposits. For terms between 18 months and less than 2 years, senior citizens benefit from an extra 50 basis points.
- For a 444-day tenure (spanning 1 year, 2 months, and 19 days), Canara Bank presents the highest fixed deposit rate at 7.25%. Senior citizen depositors receive an additional 50 basis points on top of this rate.
- For deposits ranging between 15 months and 2 years, Axis Bank sets its interest rate at 7.25%. Women senior citizens qualify for an additional interest of 0.50%.
