Celebrating the “Azadi Ka Amrit Mahotsav”, Budget 2023 delivered a new investment system to honor the country’s females by providing them with a new investment option offering good returns. The ‘Mahila Samman Saving Certificate’ is a one-time small savings scheme exclusively designed for women. It will offer a fixed interest rate of 7.5% for a duration of 2 years.
So, how will this Bachat Patra financially uplift the nation’s women? Get all the information you need on this new savings program, features, eligibility, benefits, and more.
What is Mahila Samman Patra
Mahila Samman Bachat Patra is a one time investment. The maximum amount that can be deposited under this plan is 2 lakh rupees. Women and unmarried girls will benefit from this scheme. The amount, once deposited, will be withdrawn after two years. The interest shall be compounded annually at a fixed rate of 7.5%. Those willing to draw out money prematurely can utilize the partial withdrawal facility.
Interested and eligible girls and women can avail the benefits of this scheme from April 2023. The tenure of this program will come to end in March 2025.
Mahila Samman Patra – Key features
Let’s take a look at the key features of this investment scheme exclusively designed for women:
| Name | Mahila Samman Bachat Patra |
| Type | Small Savings Scheme |
| Lump-sum or SIP | One time lump-sum investment |
| Duration | April 2023- March 2025 |
| Tenure | 2 years |
| Maximum Deposit | Rs. 2 lakhs |
| Interest Rate | 7.5% p.a. |
| Beneficiaries | Women and Girls |
| Special feature | Partial withdrawal available |
| Tax | Not yet finalized |
How does the Mahila Samman Savings Certificate work?
Suppose an investor invests Rs. 2 lakhs in this savings scheme for a tenure of 2 years. Considering the fixed interest rate of 7.5% per annum, the investor gets returns as below:
- 1st year – Rs.15,000 of interest income
- 2nd year – Rs.16,125 of interest income.
Thus, at the end of the tenure, the investor’s investment of Rs. 2 lakhs turns into Rs. 2,31,125 (Rs.2,00,000 principal investment + Rs.31,125 interest income) over 2 years.
Who can invest in Mahila Samman Savings Certificate?
Any individual can invest in this scheme by making deposits in the name of a female or a girl child. This scheme is backed by the central government and it also allows investors to make partial withdrawals.
Eligibility criteria for Mahila Samman Savings Certificate
Investment in this certificate can only be done in the name of a girl child or woman.
Maximum investment in Mahila Samman Savings Certificate
The maximum amount that can be deposited under the Mahila Samman Savings Certificate is Rs. 2 lakhs. There is no minimum amount set for this investment.
How to invest in Mahila Samman Savings Certificate?
To invest in this savings scheme, one can approach any of the state-owned banks or post office after 1st April 2023. Here are the easy-to-follow steps to invest in this scheme:
- Visit the nearest state-owned bank branch or post office branch to fill in the form for applying to this scheme
- Enter required details in the form and submit it along with the stated documents (these mainly include proof of identity and proof of address)
- Select and deposit amount of choice through cash or cheque
After all the formalities are complete, the applicant will receive the physical certificate copy as proof of investment.
Comparing Mahila Samman Savings Certificate with other savings schemes
The table below highlights key differences between Mahila Samman Savings Certificate and other government-backed savings schemes like PPF, NSC, SSY, and SCSS:
| Particulars | Mahila Samman Savings Certificate | Public Provident Fund (PPF) | Sukanya Samriddhi Yojana (SSY) | National Savings Certificate (NSC) | Senior Citizens Savings Scheme (SCSS) |
| Eligibility | Account must be opened in the name of a woman or girl child | Any Indian citizen can open a PPF account | SSY account must be opened in the name of a girl child under 10 years of age | Any Indian citizen and NRIs can opt for NSC investment | Any senior citizen above 60 years of age can apply for SCSS account |
| Tenure | 2 years | 15 years | Withdrawal is allowed only after the girl child attains 21 years of age or 50% corpus can be withdrawn for girl’s marriage/education after she turns 18. | 5 years | 5 years |
| Interest rate | 7.5% | 7.1% | 7.6% | 7% | 8% |
| Maximum investment | Up to Rs. 2 lakhs | Up to Rs. 1.5 lakhs per annum | Up to Rs. 1.5 lakhs per annum | No upper limit | Up to Rs. 30 lakhs per annum |
| Premature Withdrawal | Permitted | Partial withdrawal after completion of 7 years of account opening | 50% corpus can be withdrawn for girl’s marriage/education after she turns 18. | Withdrawals allowed if: single account holder dies, all joint account holders die, Gazetted officer forfeits, or court orders. | Permitted |
| Tax advantage | Not yet specified | As per Section 80C of IT act, it comes under Exempt-Exempt-Exempt (EEE) category | As per Section 80C of IT act, it comes under Exempt-Exempt-Exempt (EEE) category | As per Section 80C of the IT Act, deductions of up to Rs.1.5 lakh are permitted | Deductions of up to Rs.1.5 lakh under Section 80C |
Conclusion
In conclusion, women who prefer a secure investment option with reasonable returns can consider the MSSC scheme as it offers a 7.5% interest rate. This is higher than returns on most fixed deposit plans offered by banks and post offices.
FAQs
The interest rate being offered on the Mahila Samman Savings Certificate is 7.5%, which is higher than PPF and NSC. Each of the investments have unique features and benefits. Investors must check the eligibility criteria of each of these options before investing.
The Mahila Samman Savings Certificate will be available for a period of 2 years, from April 2023 and ending March 2025.
Yes, a male member of the family can open a Mahila Samman Savings account in the name of a female family member.
The interest payout of this scheme will be made along with the principal investment amount at the end of the 2-year tenure.
