The Mahila Samman Savings Certificate is a one-time small savings programme for female investors introduced by Finance Minister Nirmala Sitharaman as part of the Budget 2023. The deposit may be made in a woman’s or a girl’s name. The maximum deposit amount has been set at Rs 2 lakh. Mahila Samman Savings Certificates are offered for a two-year term beginning March 2025. This will provide a deposit facility of up to Rs. 2 lakh for a 2-year term with a fixed interest rate of 7.5% in the name of women or girls.

The Mahila Samman Saving Certificate programme now provides a partial withdrawal option, according to the Indian government. Section 80C of the Income Tax Act allows for significant tax advantages for small savings plans. The scheme’s taxing structure is not yet clear, though. With many additional benefits, Mahila Samman Savings Certificates can be a better option than Bank FD’s offering a high rate of interest.

State Bank of India (SBI), the largest lender in the nation, gives an interest rate of 6.75%, which is significantly less than many private and small financial institutions. On deposits due within two years, Kotak Mahindra Bank, ICICI Bank, and HDFC Bank all give a 7% interest rate.

According to Amit Gupta, MD of SAG Infotech, the Mahila Samman Savings Certificate offers an interest rate that is at least 0.50–1% more than the bulk of reputable institutions’ present fixed deposit rates. Investors must, however, assess the security and dependability of the bank. It should be noted that deposits in scheduled banks—which include small finance banks—are protected up to 5 lakh under the RBI’s deposit insurance plan. The Mahila Samman is supported by the federal government.

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