EXPLAINED | Mahila Samman Savings certificate: Interest rate, last date, how to invest, other important details to know

The Mahila Samman Savings Certificate, a government-backed small savings scheme, has emerged as a dedicated platform for women investors in India. Introduced in the Union Budget of 2023-24 by Finance Minister Nirmala Sitharaman, this visionary initiative aims to empower women and foster their financial inclusion. The scheme has opened for enrollment from June 27, 2023. “To commemorate Azadi Ka Amrit Mahotsav, a one-time small savings scheme, Mahila Samman Savings Certificate, will be made available for a two-year period up to March 2025. This will offer deposit facility up to Rs 2 lakh in the name of women or girls for a tenor of 2 years at a fixed interest rate of 7.5 per cent, with partial withdrawal option,” Finance Minister Nirmala Sitharaman had announced. 

The Mahila Samman Savings Certificate presents a one-time opportunity for women to embark on a secure investment journey with promising returns. With a tenure of two years, women investors can deposit funds in the name of themselves or girls, reaping the benefits of a fixed interest rate of 7.5 per cent per annum. 

The primary aim of Mahila Samman Savings certificate

The scheme aims to promote financial inclusion among women in India. Studies have shown that women in the country have fewer opportunities to access credit and use investment opportunities less frequently when compared to men. With savings and investment being one of the best ways to grow wealth, the limited time scheme aims to help women and girls in the country get started on their investment journeys. 

Mahila Samman Savings certificate: Interest rate

The Mahila Samman Savings Certificate offers a fixed interest rate of 7.5 per cent per annum compounded quarterly. The effective interest rate comes out to be 7.7 per cent 

What is the minimum investment and maximum investment in Mahila Samman Savings certificate

The minimum investment under the scheme is of Rs 1,000.  Within the Mahila Samman Savings Certificate, women investors can deposit a maximum of up to Rs 2 lakh. 

Mahila Samman Savings certificate: Maturity period and partial withdrawal

The Mahila Samman Savings Certificate carries a fixed tenure of two years. However, the scheme provides investors with the flexibility of partial withdrawal. In times of urgent financial requirements, women can access a portion of their invested amount while ensuring their long-term savings remain intact. Investors can take out 40 per cent of the balance amount in the scheme account. 

Where to buy Mahila Samman Savings certificate

Authorised banks and post offices serve as the gateways for women investors to acquire the Mahila Samman Savings Certificate. These institutions offer a seamless and convenient process for opening an account and commencing the investment journey.

In addition to post offices and all publis sector banks, private sector banks such as ICICI Bank, Axis Bank, HDFC Bank Ltd, and IDBI Bank have been authorised to operate Mahila Samman Savings Certificate accounts. 

Taxation consideration in Mahila Samman Savings certificate

While tax deducted at source (TDS) does not apply to the interest earned on the Mahila Samman Savings Certificate, the interest income is considered part of the total income for tax calculation. Investors should remain vigilant of their tax obligations and seek guidance from financial advisors to ensure optimal tax planning.