To encourage women’s involvement in the realm of investing and advance financial inclusion, the Mahila Samman Savings Certificate is a specific investment program. It is necessary to investigate this plan in further detail.
What Is Mahila Samman Savings Certificate Scheme?
The Mahila Samman Savings Certificate, a novel opportunity for women to save money, was introduced in Budget 2023. Through this program, the government hopes to encourage women’s financial engagement and empowerment.
This government-sponsored program is a one-time savings plan with a fixed interest rate of 7.5 percent. The program will be open for investment for a two-year period, starting on April 1, 2023, and ending on March 31, 2025, during which time interested investors may join.
| 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 |
Mahila Samman Savings Certificate Scheme: Features
An investment program supported by the government that gives a guaranteed rate of return is the Mahila Samman Savings Certificate. Investors should not be concerned about market volatility with this strategy because their returns are guaranteed.
There is a Rs. 1,000 minimum investment requirement, and further deposits are not permitted. A maximum of Rs. 2 lakh may be invested in a single account or several accounts.
This scheme allows for the opening of several accounts, but the total investment amount cannot exceed Rs. 2 lakh, and there must be a three-month interval between the opening dates of the new account and the old account. The scheme has a two-year lock-in period after which the maturity amount is paid.
After a year has passed after the account’s establishment, a partial withdrawal of up to 40% of the qualified balance is permitted. Premature closure is allowed in several situations, such as when the account holder passes away, when they are diagnosed with a life-threatening illness, and when their guardian passes away, among others.
Additionally, investors have the option of closing the account for any reason after six months, although the interest rate will drop by 2% to 5.5%. The program is only available to women, and any woman above the age of 18 may independently invest in it. Minors’ guardians may open the account on their behalf.
Mahila Samman Savings Certificate Scheme: Eligibility
Only women investors are allowed to participate in this plan. As a result, any woman who is 18 years old or older may independently invest in this scheme. Additionally, guardians are permitted to open accounts on behalf of young girls.
Mahila Samman Savings Certificate Scheme: Tax Benefits
Small-savings plans normally have tax advantages, but the government hasn’t given any details about how this plan will affect taxes. It is reasonable to presume that the plan will be taxed at the usual slab rate until more information is made available.
How is the Mahila Samman Savings Certificate Scheme Better Than Other Schemes?
| Basis | Mahila Samman Savings Certificate | Public Provident Fund (PPF) | Sukanya Samridhi Yojana (SSY) |
| Eligibility | Women, including minor | Any Indian citizen | Girl child up to 10 years age |
| Interest rate | 7.50% | 7.1% | 8% |
| Deposit limit | Minimum Rs 1,000 and maximum Rs 2 lakh | Minimum Rs 500 and maximum Rs 1.5 lakh | Minimum Rs 250 and maximum Rs 1.5 lakh |
| Maturity | 2 years | 15 years | After 21 years from the date of account opening or on marriage at 18 years of age |
| Partial withdrawal | Up to 40% of balance after one year | Up to 50% of balance after seven years | Up to 50% of balance at 18 years of age. Only for marriage or education. |
| Tax benefits | Not yet specified | Eligible for deduction under Section 80C | Eligible for deduction under Section 80C |
How To Open a Mahila Samman Savings Certificate Account?
India Post provides the Mahila Samman Savings Certificate Scheme. Here is a guide on how to invest in this scheme:
(1) Visit your nearest post office.
(2) To invest in the scheme, you need to fill out Form I, which can be obtained from the post office counter or downloaded from the India Post website. The completed form must be submitted before March 31, 2025.
(3) If you are a new account holder in Indian Post, you must also submit the KYC form.
(4) You must provide KYC documents such as your Aadhaar card, PAN, address proof, etc.
(5) Deposit investment amount by cash or cheque.
Upon submitting the completed form and making the payment, the post office will provide you with a scheme certificate.
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