Mahila Samman Savings Certificate
Mahila Samman Savings Certificate is a one-time small savings scheme for women and girls announced in the Union Budget 2023-24. The scheme offers an interest rate of 7.5% per annum for a 2-year tenure and includes a partial withdrawal facility. It was available from April 2023 to March 2025 and was a time-limited scheme to encourage women’s financial savings.
What Is the Mahila Samman Savings Certificate?
This is a government-backed savings scheme specifically for women and girl children, administered through post offices and authorised banks. It provides a guaranteed return of 7.5% per annum compounded quarterly, making it one of the higher-returning risk-free savings instruments available to women.
The scheme aimed to promote women’s savings and financial independence during the two-year window.
Key Features
– **Interest rate**: 7.5% per annum, compounded quarterly
– **Tenure**: 2 years from the date of account opening
– **Maximum investment**: Rs 2 lakh per account
– **Partial withdrawal**: up to 40% of the eligible balance can be withdrawn once after 1 year
– **Eligibility**: any woman or a guardian on behalf of a minor girl child
– **Multiple accounts**: a woman can hold multiple accounts in different post offices or banks, subject to the aggregate limit of Rs 2 lakh per person
– **Availability**: April 2023 to March 2025
How to Open
Available at:
– Post offices across India
– Authorised public and private sector banks
Documents required:
– Aadhaar card and PAN card
– Filled application form
– Initial deposit amount
Tax Treatment
The interest earned is taxable as income from other sources at the applicable income tax slab rate. There is no Section 80C deduction on the principal invested.
Comparison with Other Small Savings Instruments
| Instrument | Interest Rate | Duration | Tax Benefit |
|———–|————–|———|————-|
| Mahila Samman Savings Certificate | 7.5% | 2 years | No |
| NSC | 7.7% | 5 years | Section 80C |
| Senior Citizen Savings Scheme | 8.2% | 5 years | Section 80C |
| Post Office FD (2 yr) | 7.0% | 2 years | No |
Practical Example
Radha invests Rs 2 lakh in the Mahila Samman Savings Certificate in June 2023. At 7.5% compounded quarterly, after 2 years she receives approximately Rs 2,32,044. She can also withdraw up to Rs 80,000 (40% of balance) after one year if needed, without closing the account.
Key Takeaways
– Mahila Samman Savings Certificate offered 7.5% interest for 2 years exclusively for women and girl children
– Maximum investment of Rs 2 lakh per person; partial withdrawal of 40% allowed after 1 year
– Available at post offices and select banks between April 2023 and March 2025
– Interest is taxable; no Section 80C deduction available
– Suitable for women seeking a short-term, risk-free savings option with guaranteed returns
