Finance Ministry (Govt of India) has notified the Mahila Samman Savings Certificate 2023 scheme details now. The interest rate offered under this scheme is 7.5% per annum. This scheme was announced in Budget 2023, however they have released official notification now. In this article we would provide Mahila Samman Savings Certificate 2023 details, features, eligibility, where to apply and review this scheme.
About Mahila Samman Savings Certificate 2023
This scheme was announced in Budget 2023 speech by Finance Minister with the objective of promoting financial inclusion and empowering women, including girls. Govt of India has released the official notification couple of days back.
Features and Eligibility in Mahila Samman Savings Certificate 2023
Here are the features, eligibility and details of the patra.
This scheme can be opened for a woman or girl (by herself or through guardian). There is no age limit.
This scheme is open subscription from 1st April, 2023 to 31st March, 2025 i.e. 2 year period.
The minimum amount to be invested is Rs 1,000 and in multiples of Rs 100 each. The maximum amount of investment is Rs 2 Lakhs.
Eligible investors can open as many accounts they want provided they do not cross the maximum investment limit prescribed.
Mahila Samman Savings Certificate Account interest rate is 7.5%. Since the interest is compounded every quarter, the effective yield is 7.71%.
The term of deposit is 2 years or 31st March, 2025 whichever is earlier.
How can I open Mahila Samman Savings Scheme?
This account can be opened at any post office or authorized banks.
What is Mahila Samman Savings Certificate interest rate?
The interest rate under this scheme is 7.5%. Since it compounds every quarter, the effective yield is 7.71%. The interest rate for the entire tenure is fixed and would not change.
Premature Withdrawal Rules in Mahila Samman Savings Account
This account can be prematurely closed under the following circumstances:
Death of the account holder
Post office or bank determines that the operation of the account of the account holder is not possible under extreme situations like account holder needs medical support for life-threatening diseases or death of the guardian etc.,
Other than above reasons, account holders can prematurely close this account after 6 months from the date of opening the account. In this case, the interest paid would be 2% lower than the regular interest rate provided in the scheme.
Why to invest in the Mahila Samman Savings Account?
This saving scheme aims to provide high interest rates for women or girl who is looking to save money in the short term.
Eligible investors can invest as low as Rs 1,000.
This scheme is from Govt of India and is safe for investment.
Why NOT to invest in the Mahila Samman Savings Account?
If an eligible investor breaks the rules and invests excess money, then they are eligible to get only post office savings account rate, i.e. 4% only. In case of PPF any amount deposited in excess of Rs 1.5 Lakhs is returned to investor’s savings account without any penalty.
The tenure is < 2 years and very short period for anyone to make good returns.
Premature withdrawal rules in Mahila Samman Savings a/c make this scheme not that attractive.
No special tax benefits either on investment or on the returns from this scheme. On the interest received, investors need to pay income tax based on their individual tax slab.
Mahila Samman Savings Certificate 2023 – Should you invest?
This Mahila Samman Savings Certificate a/c is a saving scheme for women / girls and provide higher interest of 7.5% and yield works out to be 7.71%. It is a safe investment as it is from Govt of India.
On the other side, the short tenure of 2 years, premature withdrawal rules, liquidity are some of the major concerns in this scheme.
Increasing the investment limit (say Rs 5 to 10 Lacs) along with an increase in tenure (say 5 to 10 years) could have made this scheme better.
If you understood all scheme details, negative / risk factors indicated above, you can invest in this scheme.
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Sir one doubt. For SCSS maturity value is fixed depends on the interest on the day it got deposited. For ex 8.2% for amount invested now. Similarly Is this applicable for PPF And Sukanya Sammridhi account. Or yearly interest varies based on QoQ interest rates.
PPF and SSA interest rate is not fixed for entire tenure as these are long term investments. Based on quarterly interest rate announcement, the interest payment would happen.
Ok Thanks much for the guidance