Sukanya Samriddhi Scheme vs Post Office Mahila Samman Yojana: Which can offer higher returns on a Rs 51,000 investment? Check calculations
Compare the Mahila Samman Savings Certificate and Sukanya Samriddhi Yojana. Understand key features, interest rates, maturity, and returns on a Rs 51,000 investment to choose the best scheme for women and girls.
The Mahila Samman Savings Certificate and Sukanya Samriddhi Yojana are government-backed schemes designed to offer financial security for women and girl children. With distinct tenures, interest rates, and tax benefits, both schemes cater to different financial goals. This article compares the two schemes based on a Rs 51,000 investment, highlighting returns, maturity and flexibility in withdrawals. Whether you're planning for short-term savings or long-term goals like education and marriage, discover which scheme aligns better with your financial aspirations.
(Disclaimer: This is not investment advice. Do your own due diligence or consult an expert for financial planning)
Launch & Purpose:
- Launched by the Department of Economic Affairs, Ministry of Finance, to provide financial security for women and girls in India.
- Available for subscription at Post Offices and eligible Scheduled Banks since April 1, 2023.
- Valid till March 31, 2025.
Key Features:
- Interest Rate: 7.5% per annum, compounded quarterly.
- Investment Range: Minimum Rs 1,000, maximum Rs 2,00,000.
- Tenure: 2 years.
- Partial Withdrawal: Up to 40% after 1 year.
Eligibility:
- Only women and girl children are eligible.
- Minor accounts can be opened by a guardian.
- No upper age limit for women.
Deposits:
- Maximum deposit limit is Rs 2,00,000 per account.
- Deposits must be in multiples of Rs 100.
Maturity
The deposit matures after 2 years, with interest compounded quarterly.
Eligible balance is rounded to the nearest rupee for maturity.
Withdrawal
Partial withdrawal of up to 40% allowed after 1 year, before maturity.
Application Process
- Offline application available at Post Offices or designated Banks.
- Submit completed form with required documents and deposit amount.
Premature Closure
- Allowed only in cases like the death of the account holder or extreme compassionate grounds.
- If closed prematurely, interest rate is reduced by 2%.
Sukanya Samriddhi Account Scheme
Key Features:
- Interest Rate: 7.6% per annum, compounded yearly.
- Investment Range: Minimum Rs 250, maximum Rs 1,50,000 per year.
- Tenure: 21 years.
- Eligible for Girls: Account must be opened before the girl turns 10 years old.
Benefits
- Tax Benefits: Investment qualifies for deduction under Sec. 80-C of the Income Tax Act.
- Tax-Free Interest: Interest earned is exempt from Income Tax under Sec. 10 of the Income Tax Act.
Features
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Withdrawals:
- Withdrawals allowed for higher education after 18 years of age.
- Premature closure allowed if the girl gets married after 18 years.
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Transferability:
- Account can be transferred across Post Offices/Authorized Banks within India.
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Maturity:
- Matures after 21 years from the account opening date.
Withdrawals:
- Withdrawals allowed for higher education after 18 years of age.
- Premature closure allowed if the girl gets married after 18 years.
Transferability:
- Account can be transferred across Post Offices/Authorized Banks within India.
Maturity:
- Matures after 21 years from the account opening date.
Comparison: Returns on Rs 51,000 Investment
Mahila Samman Savings Certificate:
Total Investment: Rs 51,000
Total Interest: Rs 15,90,377
Maturity Value: Rs 23,55,377
Sukanya Samriddhi Account:
Total Investment: Rs 51,000.
Estimated Returns: Rs 8,171.
Maturity Amount: Rs 59,171.