Women-Only Savings Scheme Deadline Approaches
The Mahila Samman Savings Certificate, a government-backed initiative aimed at empowering women and girls financially, is set to close for new investments on March 31, 2025. This small savings scheme offers a secure investment option with a fixed duration of two years, promoting financial independence among women. With a competitive interest rate and specific eligibility criteria, this scheme is designed to encourage women to take charge of their financial futures.
Eligibility Criteria for Participation
The Mahila Samman Savings Certificate is exclusively available to women and girls, ensuring that the benefits of this scheme directly support their financial autonomy. Additionally, guardians are permitted to invest on behalf of minor girls, allowing families to foster financial literacy and investment habits from a young age. This targeted approach not only empowers women but also encourages young girls to start building their investment portfolios early, setting a foundation for future financial independence.
Interest Rates and Deposit Requirements
To participate in the Mahila Samman Savings Certificate scheme, investors must make a minimum deposit of ₹1,000, with a maximum investment limit set at ₹2 lakh per individual. The scheme offers an attractive interest rate of 7.5% per annum, compounded quarterly. Interest is credited to the account and paid out upon account closure. Investors can also access up to 40% of their deposited funds after one year, providing flexibility in managing their finances. The full amount, including both principal and interest, becomes available at the end of the two-year term, making this scheme a viable option for those seeking short-term investment growth.
Tax Implications of the Scheme
While the Mahila Samman Savings Certificate offers a solid investment opportunity, it is essential to consider the tax implications. The interest earned from this scheme must be reported as “Income from Other Sources” in tax returns. Notably, investments in this scheme do not qualify for tax benefits under Section 80C of the Income Tax Act. This aspect is crucial for potential investors to weigh against other tax-advantaged investment options available in the market. In comparison, major banks offer varying interest rates on fixed deposits, with the State Bank of India providing 6.80% for general citizens and senior citizens receiving an additional 50 basis points. HDFC Bank and Canara Bank also offer competitive rates, making it important for investors to evaluate their options carefully before committing to the Mahila Samman Savings Certificate.
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