Mahila Samman Savings Certificate scheme

Mahila Samman Savings Certificate scheme

News: The Centre has authorised all public sector banks and eligible private sector banks — ICICI Bank, Axis Bank, HDFC Bank Ltd. and IDBI Bank — to implement and operationalise the Mahila Samman Savings Certificate scheme.

What is the Mahila Samman Savings Certificate scheme?
• It is a new small savings scheme launched by the government of India in 2023 to commemorate the Azadi ka Amrit Mahotsav. It is a scheme exclusively for women and girls, aimed at empowering them financially and increasing their participation in investments.

Key Features:
• It is a one-time scheme available for two years, from April 2023 to March 2025.
• It offers a fixed interest rate of 7.5% per annum, compounded quarterly but payable at maturity.
• It has a minimum deposit amount of Rs. 1,000 and a maximum deposit amount of Rs. 2 lakh per account holder.
• It has a maturity period of two years, with a partial withdrawal facility of up to 40% of the balance after one year.
• It is backed by the government and does not have any credit risk.
• It does not have any tax deduction at source (TDS), but the interest income is taxable as per the income tax slab of the account holder.
• An account under this scheme can be opened by a woman for herself or by the guardian on behalf of a minor girl child.
Source - https://www.etmoney.com/learn/saving-schemes/mahila-samman-saving-certificate/