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What is the Mahila Samman Savings Certificate, 2023?

 

Mahila Samman Savings Certificate is a risk-free scheme dedicated towards Women and Girls of all age groups. This scheme has been designed with the intent of encouraging women and Girls to save and invest. The account opened under this scheme should be a single-holder type account.

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Below mentioned are the features of the Mahila Samman Savings Certificate, 2023.

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Tenure – The two-year Mahila Samman Savings Certificate is a one-time programme that runs from April 2023 to March 2025. For two years at a set interest rate, it will provide a maximum deposit facility of up to Rs. 2 lakh in the names of women or girls..

 

Deposit Limits – One can open a Mahila Samman Savings Certificate from a minimum investment of ₹ 1000 and in multiples of ₹ 1000  and can invest a maximum of up to ₹ 200,000. A time gap of three months shall be maintained between the existing account and the opening of another account.

 

Effective Interest Rates: Deposit shall be eligible for 7.5 per cent interest per annum. Interest on the same will be compounded quarterly, credited to the account and paid at the time of closure of the account. Account opened or deposit made in contravention of rules will be eligible for interest @ PO Savings Account.

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Tax Benefits: There is no tax exemption available on the interest earned from the scheme. Investment in the Mahila Samman Savings Certificate doesn't avail of any taxation benefit. The amount invested does not have a deduction under section 80 C as well the interest earned on the deposit is taxable.

 

Nomination: The Mahila Samman Savings Certificate provides the provision for nomination as any other investment. Be sure to file the nomination at the time of account opening to avoid any hassles later on.

 

Partial Withdrawal: A 40% withdrawal of eligible balance can be taken after one year from the date of account opening.

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Premature Closure: Pre Mature closure is allowed on below mentioned conditions:

• On the death of the account holder

• On extreme compassionate grounds (i) Life-threatening decease of the account holder (ii) death of the guardian on the production of relevant documents.Note:-Scheme interest will be paid on the principal amount.

• After six months of account opening without mentioning any reason.

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Maturity: The deposit will mature after two years from the date of opening eligible balance will be paid to the depositor.

 

How to start investing in Mahila Samman Savings Certificate?

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One can visit a nearby Post office or selected bank and can open a Mahila Samman Savings Certificate Deposit. One will have to fill out and submit one account opening form and KYC documents like a photograph, PAN card and Aadhaar Card. 

 

Suitability :

 

The Mahila Samman Savings Certificate Deposit is a very secure investment with a sovereign guarantee which makes it a better choice for investment for individual investors, also it provides taxation benefits on the investment done as well as on the maturity making it more lucrative. So, this Investment is basically for risk-averse investors who are not willing to take any risk. But compared to this for a longer horizon one can also look towards RBI Floating Rate Bonds or any bank's Fixed Deposits which can provide better rates offered by Mahila Samman Savings Certificate.