Commemorating the Azad Bharat Amrit Mahotsav, Union Finance Minister Nirmala Sitharaman introduced the Mahila Samman Savings Certificate, a social security scheme to empower women financially. Investments in the scheme attract 7.5 per cent interest rates.

It’s a one-time investment scheme available at banks and post offices.

Key Features of Mahila Samman Savings Certificate:

The scheme requires a minimum deposit of Rs. 1,000 and, after that, in multiples of Rs 100. The maximum deposit is Rs 2 lakh, open for both female senior citizens and young women. Additionally, one can open multiple accounts with a gap of three months between each account.

The scheme offers guaranteed returns and is available only for women and girls with no minimum or maximum age limit. A parent can also open an account on behalf of a minor child.

The Mahila Samman Savings scheme has a lock-in period of two years, but investors can partially withdraw up to 40 per cent of the invested amount a year after the opening date.

Also, there is no tax liability as the 7.5 per cent interest on Rs 2 lakh is below the taxable limit. However, taxes will apply if the annual interest from all sources exceeds Rs 40,000 for women below 60 years and Rs 50,000 for those above 60.

Also Read: What Is Annuity In NPS And What Are The Schemes Available?

Premature Closure

The scheme allows premature closure six months after account opening under exceptional circumstances. However, the returns will be at 5.5 per cent. Such closures are permitted if the accountholder faces life-threatening diseases or death. Furthermore, it will return the invested amount and the interest accrued to the eligible nominee if the guardian or the accountholder dies.

Mahila Samman Savings Certificate aims to promote savings for female children and ensure financial independence. It provides them an opportunity to save and invest for the future.

Also read: Why Is It Important To Be Financially Literate? Tips For Financial Independence