Mahila Samman Savings Scheme is a government-backed savings scheme exclusively available for women in India. A woman or girl of any age may open this one-time plan in her name.
How the returns earned on Mahila savings scheme will be calculated
The interest earned on the Mahila savings scheme will be paid upon maturity, but the interest is compounded quarterly. The return on investment for this scheme is calculated using a simple interest rate formula. “The return on Mahila Samman Savings Certificates is computed weekly and compounded along with the invested money, similar to cumulative fixed deposit or post office time deposit programs,” said Vinit Khandare, CEO and Founder, MyFundBazaar.
To calculate the interest earned, the simple interest formula is applied, which multiplies the principal amount, the interest rate, and the duration for which the investment is held., said Amit Gupta, MD ofSAG Infotech
For instance. you might invest ₹2 lakh, you’ll receive interest for ₹3,750 after the first quarter. You will receive interest of ₹3,820 at the end of the second quarter once this amount has been reinvested. Accordingly, when the bond matures, you will receive ₹2,32,044.
Mahila Samman Savings Scheme interest rate
Between 2023 and 2025, the Mahila Samman Savings Certificate will be offered for a two-year term. It provides a fixed interest rate of 7.5% for two years. For the entire two-year term, the interest rate on the Mahila Samman Savings Certificate will be fixed at 7.5%.
TDS is applicable on interest earned from Mahila Samman Savings Scheme
There is no tax exemption available on the interest earned from the scheme, CBDT said in a notification on 16 May 2023. The TDS under Section 194A is applicable if the interest earned from the scheme in a financial year exceeds ₹40,000.
The scheme was introduced in the 2023-24 Budget by the Finance Minister, Nirmala Sitharaman, to promote financial inclusion and empower women, including girls.
Who should consider investing in Mahila Samman Savings Scheme?
As for who should consider investing in the Mahila Samman Savings Certificate, it is open to all women regardless of age or occupation. This scheme provides a secure savings avenue with a government guarantee, making it an attractive option for women seeking low-risk investments. By investing in this certificate, women can earn a fixed return on their savings while enjoying the benefits of a government-backed scheme.
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Updated: 15 Jun 2023, 02:49 PM IST