MAHILA SAMMAN SAVINGS CERTIFICATE VS SUKANYA SAMRIDDHI YOJANA: KNOW BENEFITS & WHICH ONE IS BETTER FOR YOU?

The government launches special savings schemes for girls and women in India to address specific socio-economic challenges and promote gender equality. Women and girls often face barriers to accessing financial services and participating in formal savings mechanisms. Special savings schemes aim to include them in the financial mainstream and encourage them to save for their future.

Sukanya Samriddhi Yojana and Mahila Samman Saving Certificate are two of the schemes designed with specific purposes. Economic empowerment is key to women’s overall empowerment. By providing them with opportunities to save and invest, these schemes enable women to have greater control over their finances and make independent financial decisions.

What Is Mahila Samman Saving Certificate?

Mahila Samman Saving Certificate is a one-time new small savings scheme of the government of India announced in the Budget 2023.

Mahila Samman Savings Certificate will be made available for two years up to March 2025. This will offer a deposit facility of up to Rs 2 lakh in the name of women or girls for a tenure of 2 years.

Mahila Samman Saving Certificate Interest Rate

Mahila Samman Saving Certificate will offer a deposit facility up to Rs 2 lakhs in the name of women or girls for a tenure of 2 years at a fixed interest rate of 7.5% with a partial withdrawal option.

Experts feel that the Mahila Samman Savings Certificate is a suitable alternative to fixed deposits (FDs) invested in the name of a woman for the short term.

Eligibility:

• Any resident Indian woman, regardless of age, is eligible.
• An account can be established for a minor girl by her natural or legal guardian.

Deposit Limits:

• The minimum deposit is Rs. 1000/- and the maximum is Rs. 2 lakhs
• Deposits must be made in multiples of Rs. 100/-.
• Only one deposit is allowed per account.
• There is no limit on the number of accounts per depositor, as long as the total amount across all accounts under this scheme does not exceed Rs 2 lakhs
• A time interval of 3 months must be observed between opening two accounts under this scheme for the same customer.

Mahila Samman Saving Certificate Last Date

The scheme is available for a limited period only. As of now, the Mahila Samman Savings Certificate is a two-year scheme that commenced in April 2023 and will continue till March 2025.

How To Apply For the Mahila Samman Saving Certificate Scheme?

The Mahila Samman Saving Certificate Scheme will be rolled out through banks and post offices across the country.

Sukanya Samriddhi Yojana

The Sukanya Samriddhi scheme aims to secure a prosperous future for girls by providing attractive interest rates and tax advantages as per Section 80C of the Income Tax Act.

Difference between the Mahila Samman Saving Certificate and Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana: The Sukanya Samriddhi Scheme is a small deposit scheme of the government of India meant exclusively for a girl child. The scheme is meant to meet the education and marriage expenses of a girl child.

The Sukanya Samriddhi Yojana (SSY) is a government program in India specifically designed to help families save for their girl child’s future. Launched in 2015 as part of the Beti Bachao Beti Padhao campaign (Save Daughter, Educate Daughter), it offers an interest rate of 8.2%, which is compounded annually.

• Sukanya Samriddhi scheme has tax benefits under Section 80C.
• Eligibility: An SSY account can be opened for a girl child up to 10 years old.
• Minimum & Maximum Deposit: A minimum of Rs. 250 and a maximum of Rs. 1.5 lakhs can be deposited annually.
• Investment Period: A minimum of 15 years of contributions are required.
• Partial Withdrawals: Partial withdrawals are allowed for higher education expenses after the girl child turns 18, with a limit of 50% of the balance.
• Account Closure: The account matures in 21 years, or prematurely in case of the girl’s marriage after she turns 18.