Budget 2023 launched 'Mahila Samman Savings Certificate' for women investors to commemorate 'Azadi ka Amrit Mahotsav'. This scheme is a one-time small savings scheme that will be made available for a period of two years, from April 2023 to March 2025.
International Women's Day talks about female empowerment and the same cannot be achieved without getting financial independence. On the same lines, the Budget 2023 launched 'Mahila Samman Savings Certificate' for women investors. This scheme is a one-time small savings scheme that will be made available for a period of two years, from April 2023 to March 2025. Let's know more about it:
What is the investment limits of the scheme?
The Mahila Samman Savings Certificate allows for a maximum deposit of Rs 2 lakh.
What are the tenor and interest rate offered?
The tenor of the scheme is 2 years and interest rate is 7.5 percent per annum with the facility of partial withdrawal.
Is there any associated risk?
This is a small savings scheme backed by the government. Hence, it does not have any credit risk.
Are there tax benefits?
Small savings schemes usually qualify for tax benefits under Section 80C. However, the taxation structure of this scheme is yet to be specified.
How investors can benefit?
According to experts, this will help women to start investing for their short-term financial goals and needs.
"Compared to other small savings schemes like Sukanya Samriddhi Yojna which has a maximum investment limit of Rs 1.5 lakh in a financial year, and also has a long lock-in period of 21 years, the Mahila Samman Savings Certificate provides an opportunity to invest up to Rs 2 lakh for a tenure of 2 years, making it a better investment option for female investors," CA Manish P. Hingar, Founder of Fintoo said.
How it compares with other scheme?
| Particulars | Mahila Samman Savings Certificate | PPF | Sukanya Samriddhi Yojna (SSY) | Senior Citizen Savings Scheme (SCSS) |
| Eligibility | Women and girl children | Any individual | Only in the name of a girl child before she attains 10 years | Senior citizens aged above 60 years |
| Interest Rate | 7.50% | 7.10% | 7.60% | 8% |
| Tenure | 2 years | 15 years | 21 years from opening the account or when the girl child attains 18 years | 5 years |
| Deposit Limit | Maximum - Rs.2 lakh | Minimum - Rs 500 | Minimum - Rs.250 | Minimum - Rs.1,000 |
| Maximum - Rs 1.5 lakh | Maximum - Rs 1.5 lakh | Maximum - Rs 30 lakh | ||
| Premature Withdrawal | Allowed | Permits partial withdrawal after 7 years | Allowed under certain circumstances | Can be closed at any time |
| Tax Benefit | Not yet specified | Exempt-Exempt-Exempt (EEE) category under Section 80C category | Exempt-Exempt-Exempt (EEE) category under Section 80C category | Deductions of up to Rs.1.5 lakh under Section 80C |
First Published: Mar 3, 2023 5:33 PM IST
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