Introduced in the Budget 2023, the Mahila Samman Saving Certificate is a transformative initiative aimed at encouraging saving and investment among women and girls.
This unique scheme, available for a limited period from April 2023 to March 2025, offers a one-time opportunity for Indian women of all ages to open accounts and invest in financial products.
Legal or natural guardians, including male guardians, can also open accounts for minor girls, empowering them to embark on their financial journey.
Key Features and Rules:
- Tax Exemption: Investments made under the Mahila Samman Saving Certificate are exempted under Income Tax Act 80C. However, tax is applicable on the interest earned, and TDS is deducted on the interest income.
- Interest Rate: The scheme offers an attractive interest rate of 7.5% per annum. The interest is credited to the account every quarter, and both the interest and the principal amount are available on maturity.
- Maturity Amount: For example, an investment of Rs 2 lakh in the Mahila Samman Saving Certificate for 2 years would yield Rs 2.32 lakh on maturity, following a structure similar to fixed deposits.
- Account Opening: To open an account, visit your nearest post office or participating banks and submit the required form along with KYC documents (Aadhaar and PAN card). A pay-in-slip and cheque are also required for account activation.
- Premature Closure: Premature closure is allowed in cases of the account holder’s death, life-threatening situations, or after six months without any specific reason. However, interest will be reduced by 2%, resulting in a 5.5% interest rate.
- Maximum Investment: The minimum investment amount is Rs 1000, with multiples of 100. The maximum limit per account is Rs 2 lakh. If opening multiple accounts, there must be a gap of at least 3 months.
- Withdrawal: After one year of account opening, 40% of the money can be withdrawn, providing flexibility for financial needs.
The Mahila Samman Saving Certificate empowers women to take charge of their financial future and serves as a valuable tool for long-term financial planning and security.
