In a significant move towards empowering women and promoting their financial inclusion, the Government of India has introduced the Mahila Samman Savings Certificate Scheme 2023. This scheme aims to provide a secure and lucrative investment avenue exclusively for women, allowing them to accumulate savings while earning a competitive interest rate. Here this complete details about the Latest scheme that has been released by the Government to support women’s empowerment and give more opportunities to Indian Women.
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What is Mahila Samman Savings Certificate Scheme?
The Mahila Samman Savings Certificate Scheme is a government-backed investment scheme designed specifically for women. Launched in 2023, this scheme offers women an opportunity to invest their savings and earn attractive returns, fostering financial independence and empowerment. The scheme is available at all post offices across India, making it easily accessible to women from all walks of life.
| Eligibility | Any women, including minor |
| Interest rate | 7.50% |
| Minimum investment | Rs 1,000 |
| Maximum investment | Rs 2 lakh (combined in all accounts) |
| Maturity period | 2 years |
Here are the details about some of the key features of this latest scheme that has been released and backed by the Government of India.
Features of Mahila Samman Savings Certificate:
It provides a secure and lucrative savings avenue, empowering women and fostering their financial inclusion. With attractive interest rates, flexible investment amounts, and a fixed five-year tenure. Here are the other key features.
- Exclusively for women: The scheme is open only to women, regardless of age or income level. It aims to encourage women to save and invest for their future financial security.
- Tenure and maturity: The Mahila Samman Savings Certificate has a fixed tenure of five years. At maturity, the invested amount along with the accumulated interest is returned to the investor.
- Investment Amount: The minimum investment amount is Rs. 1,000, and there is no maximum limit for investment. Women can invest as per their financial capacity and goals.
- Interest Rate: The scheme offers an attractive interest rate, which is subject to change based on prevailing market conditions. The interest is compounded annually, enhancing the overall returns on investment.
- Nomination Facility: Investors can nominate one or more individuals to receive the investment proceeds in the event of their demise.
Interest Rate of Mahila Samman Savings Certificate:
The interest rate offered by the Mahila Samman Savings Certificate Scheme is competitive compared to other small savings schemes.
However, it is important to note that the interest rate is subject to revision by the government periodically. Investors should stay updated with the latest interest rate announcements.
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Premature Closure of Mahila Samman Savings Certificate:
The scheme allows for premature closure under certain circumstances. In case of an emergency or urgent financial need, investors can opt to close their Mahila Samman Savings Certificate before the completion of the five-year tenure. However, premature closure may attract a penalty, which varies based on the duration of the investment.
How to Open a Mahila Samman Savings Certificate?
Opening a Mahila Samman Savings Certificate account is a straightforward process. Interested women can follow these steps:
- Visit the Nearest Post Office: Locate your nearest post office offering the Mahila Samman Savings Certificate Scheme.
- Fill out the Application Form: Obtain the application form from the post office and fill it out accurately with the required information.
- Submit Necessary Documents: Submit the necessary documents, such as identity proof, address proof, and passport-sized photographs, along with the completed application form.
- Deposit the Investment Amount: Pay the desired investment amount in cash or through a demand draft.
- Receive the Certificate: Once the application and documents are verified, you will receive the Mahila Samman Savings Certificate.
Documents Required for Mahila Samman Savings Certificate Account:
To open a Mahila Samman Savings Certificate account, One just needs to have the following mentioned documents that are generally required by the Officials:
- Identity proof: Aadhaar card, PAN card, voter ID card, or passport.
- Address Proof: Aadhaar card, utility bills, rent agreement, or bank statement.
- Photographs: Passport-sized photographs.
Mahila Samman Savings Certificate Calculation:
The interest on the Mahila Samman Savings Certificate has compounded annually. The exact calculation formula may vary, but typically it is calculated as follows:
Maturity Amount = Principal Amount × (1 + Interest Rate/100) (Number of years)
Mahila Samman Savings Certificate Vs Other Small Savings Schemes:
Compared to other small savings schemes like Public Provident Fund (PPF) or National Savings Certificate (NSC), the Mahila Samman Savings Certificate has its unique advantages for women:
- Exclusive for Women: The scheme is designed exclusively for women, promoting their financial inclusion and empowerment.
- Higher Interest Rate: The interest rate offered by the Mahila Samman Savings Certificate is usually higher than other small savings schemes, making it an attractive investment option.
- Flexibility: The scheme allows for premature closure, enabling women to access funds in case of emergencies.
- Accessibility: With post offices serving as the primary distribution channel, the scheme is easily accessible to women across India.
Here is a brief comparison between the Mahin Samman Saving Certificate Scheme vs other financial institutions. The comparison may vary till the time you read this blog. But till today it is the same as mentioned below:
PPF Vs Mahila Samman Savings Certificate:
| Particulars | Mahila Samman Savings Certificate | PPF |
| Eligibility | Women and girl children | Any individual Indian citizen |
| Interest Rate | 7.5% | 7.1% |
| Tenure | 2 years | 15 years |
| Deposit Limit | Minimum – Rs.1,000 Maximum – Rs.2 lakh |
Minimum – Rs.500 Maximum – Rs 1.5 lakh |
| Premature Withdrawal | Permits 40% withdrawal after one year | Permits partial withdrawal after 7 years |
| Tax Benefit | Not yet specified | Exempt-Exempt-Exempt (EEE) category under Section 80C category |
NSC Vs Mahila Samman Saving Scheme:
| Particulars | Mahila Samman Savings Certificate | NSC |
| Eligibility | Women and girl children | Any individual, including NRIs |
| Interest Rate | 7.5% | 7.7% |
| Tenure | 2 years | 5 years |
| Deposit Limit | Minimum – Rs.1,000 Maximum – Rs.2 lakh |
Minimum – Rs.100 Maximum – No limit |
| Premature Withdrawal | Permits 40% withdrawal after one year | Allowed in certain circumstances |
| Tax Benefit | Not yet specified | Deductions of up to Rs.1.5 lakh under Section 80C |
SCSS Vs Mahila Samman Savings Scheme:
| Particulars | Mahila Samman Savings Certificate | SCSS |
| Eligibility | Women and girl children | Senior citizens aged above 60 years |
| Interest Rate | 7.5% | 8.2% |
| Tenure | 2 years | 5 years |
| Deposit Limit | Minimum – Rs.1,000 Maximum – Rs.2 lakh |
Minimum – Rs.1,000 Maximum – Rs.30 lakh |
| Premature Withdrawal | Permits 40% withdrawal after one year | Can be closed at any time |
| Tax Benefit | Not yet specified | Deductions of up to Rs.1.5 lakh under Section 80C |
SSY Vs Mahila Samman Savings Scheme:
| Particulars | Mahila Samman Savings Certificate | SSY |
| Eligibility | Women and girl children | Only in the name of a girl child before she attains 10 years |
| Interest Rate | 7.5% | 8.0% |
| Tenure | 2 years | 21 years from opening the account or when the girl child attains 18 years |
| Deposit Limit | Minimum – Rs.1,000 Maximum – Rs.2 lakh |
Minimum – Rs.250 Maximum – Rs.1.5 lakh |
| Premature Withdrawal | Permits 40% withdrawal after one year | Allowed under certain circumstances |
| Tax Benefit | Not yet specified | Exempt-Exempt-Exempt (EEE) category under Section 80C category |
The Mahila Samman Savings Certificate Scheme 2023 is a commendable initiative by the Government of India to empower women financially. By offering an exclusive investment avenue with attractive interest rates, this scheme encourages women to save and grow their wealth while ensuring their financial independence. Women should seize this opportunity to secure their future and take control of their financial well-being through the Mahila Samman Savings Certificate Scheme.
FAQs For Mahila Samman Savings Certificate 2023
Only women, regardless of age or income level, are eligible to invest in the Mahila Samman Savings Certificate Scheme.
The minimum investment amount for the Mahila Samman Savings Certificate Scheme is Rs. 1,000.
The Mahila Samman Savings Certificate Scheme has a fixed tenure of five years.
Yes, premature closure is allowed under certain circumstances. However, it may attract a penalty based on the duration of the investment.
The interest rate of the Mahila Samman Savings Certificate Scheme is competitive and subject to revision by the government from time to time.
The Mahila Samman Savings Certificate Scheme offers no specific tax benefits. However, the interest earned is taxable as per the investor’s income tax slab.
