Returns from Mahila Samman beat bank FDs
Returns from Mahila Samman beat bank FDs
The scope of the Mahila Samman Bachat Patra Yojana is going to be expanded thanks to a new effort that the government has adopted. As a result of this, you may now open this account at any government bank as well as some private banks by your choice. Up to this point, this service has only been made available in post offices. This plan is now outperforming bank and post office fixed deposits in terms of returns. The Mahila Samman Savings Certificate was initially introduced by Bank of India, making it the first public sector bank in the nation to do so. The private financial institutions Axis, ICICI, HDFC, and IDBI Bank have been given permission to launch this plan.
Superior to the FD
The Mahila Samman Nidhi organisation would get 7.5 percent on a yearly basis. When we examine the returns, we see that the one year fixed deposit at the post office offers an interest rate of 6.9 percent, while the two and three year fixed deposits provide an interest rate of 7 percent.
If we look at the returns on fixed deposits offered by major banks, we find that the State Bank of India (SBI), which is the largest government bank in the nation, offers 6.80 percent interest on fixed deposits for terms of one to two years and 7 percent interest on deposits for terms of two to three years. On fixed deposits with terms ranging from one to five years,
PNB is giving an interest rate of 6.50 to 7 percent. On fixed deposits with other government banks, an interest rate that is more or less comparable to that one is obtained. As a result of this, the interest rate offered by the Mahila Samman Yojana is superior to the rates offered by banks and post offices for fixed deposits.
How does the plan stand now?
The Mahila Samman Bachat Patra is a modest savings plan run by the government that is reserved solely for female participants. The expansion of women’s involvement in the economy and the investing world is one of the primary motivations for the government’s decision to start this programme. Beginning on April 1st, 2023 and continuing until March 31st, 2025, new deposits can be made into this account. This particular investment has a maturity duration of two years. For instance, if you make an investment on July 5, 2023, you will get your original investment plus interest on July 5, 2025, which is exactly two years later.
How can I start a new account?
Form-1 is to be filled out in order to open an account in the Mahila Samman Yojana programme at the post office. For this purpose, you won’t need to get a savings account of any kind. You will receive the passbook corresponding to the amount of the investment. One thousand rupees (Rs.) minimum and up to two hundred thousand rupees (Rs.)
maximum may be put in this. Then, regardless of whether it is done through a single account or with the assistance of several accounts. The account can be opened in the name of underage females by their legal guardians, who are often their parents. An representative from the SBI shared that at the present time, only public sector banks offer this service to their customers.
Who has the authority to set up the account?
Under the Mahila Samman Yojana, a bank account can be established in the name of any family member who identifies as a woman. The account can be opened in the name of underage females by their legal guardians, who are often their parents. The option to invest a single sum is available through this plan. Within the framework of this system, more than one account may be created if the necessary funds are arranged.
Interest calculation
An yearly interest rate of 7.5 percent is predetermined for participants in the Mahila Samman programme. The interest is computed on a quarterly basis, using compounding as the calculation method. If you put one lakh rupees into this account right now, you will have 1,16,000 rupees in your possession in two years if the interest rate is 7.5%. In a similar manner, an investment of Rs. 1.5 lakh will result in Rs. 1.74 lakh at completion of the maturity period. This includes a total of Rs. 24,000 in interest income. At the time of maturity, you will receive 2,32,000 rupees in return for an investment of two lakh rupees.
When will the funds be available for withdrawal?
The Mahila Samman Yojana will be fully functional in two years. However, you are able to take money out of it even before it has fully matured. After the first year has passed since the account was opened, you have the option of making a partial withdrawal.
However, customers are only allowed to withdraw forty percent of the total money that was placed into the account. In the event that the owner of the account passes away. Or, even if he has a sickness that may ultimately prove deadly,
the account can still be terminated. For this, the necessary documentation will need to be presented. If the account is closed during the first six months after it has been opened, the money left in it will be returned to the depositor less a fee of 5.5 percent.
tax calculation
Unlike other modest savings programmes, such as the PPF and the NSC, investments in the Mahila Samman Yojana will not qualify for any tax exemptions under Section 80C. On the other hand, there wouldn’t be any tax taken out of the interest at the source.
