Mahila Samman Savings Certificate 2023 –
_____________________________________________
Mahila Samman Bachat Patra is a saving scheme launched by the Indian government for the empowerment of women. It is a small savings scheme that allows women to invest a certain amount of money for a fixed term and earn a guaranteed return on their investment.
This scheme can be opened for a woman or girl, herself or through guardian. There is no age limit. Eligible investors can open as many accounts they want provided they should not cross the maximum investment limit given.
Mahila Samman Savings Certificate Account interest rate is 7.50%. Since the interest is compounded quarterly, the effective yield comes out at 7.71%.
Features of Mahila Samman Bachat Patra:
- Eligibility: Any woman or girl (by herself or through guardian) who is a citizen of India can invest in this scheme. The account can be opened individually or jointly with another woman. There is no age limit. Eligible investors can open as many accounts they want provided they do not cross the maximum investment limit prescribed.
- Investment amount: The minimum investment amount is Rs. 1000 and in multiples of Rs 100 each. The maximum amount of investment is Rs 2 Lakhs.
- How to Open Account: This account can be opened at any post office or authorized banks
- Tenure: This scheme is open subscription from 1st April, 2023 to 31st March, 2025 i.e. 2 year period. The term of deposit is 2 years or 31st March, 2025 whichever is earlier.
- Interest rate: The interest rate on Mahila Samman Bachat Patra is fixed by the government and is currently 7.5%. The interest is compounded quarterly, The effective yield is 7.71%. The interest rate for the entire tenure is fixed and would not change.
- Tax benefits: No special tax benefits either on investment or on the returns from this scheme. On the interest received, investors need to pay income tax based on their individual tax slab.
- Security: Mahila Samman Bachat Patra is a safe investment option as it is backed by the government.
Investment Mistakes to Avoid by Investors
Benefits of Mahila Samman Bachat Patra:
- Empowerment of women: This scheme is designed to encourage women to save and invest for their future. It helps in empowering women financially and enabling them to become financially independent.
- Fixed returns: The scheme offers a guaranteed return on investment, which makes it a safe investment option for those who are risk-averse.
- Tax benefits: The investment made in this scheme is eligible for tax deductions under section 80C of the Income Tax Act.
- Easy availability: Mahila Samman Bachat Patra is available through all post offices across India, making it easily accessible for all.
Premature Withdrawal Rules:
This account can be prematurely closed under the following circumstances:
- Death of the account holder.
- Post office or bank determines that the operation of the account is not possible under extreme situations like account holder needs medical support for life-threatening diseases or death of the guardian etc.
- Account holder can prematurely close this account after 6 months from the date of opening the account. In this case, the interest paid would be 2% lower than the regular interest rate provided in the scheme.
Why To Invest:
- This saving scheme aims to provide high interest rates for women or girl who is looking to save money in the short term.
- Eligible investors can invest as low as Rs 1,000.
- This scheme is from Govt of India and is safe for investment.
Why NOT to invest:
- If an investor invests excess money, then she'll eligible to get only post office savings account rate, i.e. 4% only. While in PPF amount deposited in excess of Rs 1.5 Lacs is returned to her savings account without any penalty.
- The tenure is < 2 years and very short period for anyone to make good returns.
- Premature withdrawal rules in Mahila Samman Savings a/c make this scheme not that attractive.
- No special tax benefits either on investment or on the returns from this scheme. On the interest received, investor have to pay tax based on her tax slab.
Conclusion:
Mahila Samman Bachat Patra is a great investment option for women who want to save and invest for their future. It offers a guaranteed return on investment and tax benefits, making it a safe and attractive investment option. Women should take advantage of this scheme and start investing today to secure their financial future.
Should you invest?:
This is a saving scheme launched by Government of India for women / girls and provide higher interest of 7.5% and yield works out to be 7.71%. It is a safe investment as it is from Govt of India.
On the other side, the short tenure of 2 years, premature withdrawal rules, liquidity are some of the major drawbacks of this scheme.
Increasing the investment limit 5 to 10 Lac along with the tenure 5 to 10 years could have made this scheme better.
If you understood all scheme details, Risk factors above, you can invest in this scheme.
"The Power of Small Savings: Why Even Saving Rs. 2,000 Per Month Can Make a Difference"
Thanks for reading. If you enjoyed this article, please like and share for better reach!!