7.5% interest rate: Mahila Samman Savings Scheme might not get extended beyond March 2025; should you invest? The scheme is accessible for investment until March 2025, with a two-year term
Mahila Samman Savings Certificate is a one-time, new small savings scheme for women beneficiaries. The scheme is open for investment until March 2025, for a two-year period.#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;} In the current fiscal year, the government aims to allocate a reduced amount of funds towards small savings schemes due to the expectation of a shift in investor preference towards alternative options such as mutual funds and stocks, according to a CNBC TV18 news report.
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Further it said, if interest rates start to decline, the government may be exposed to an interest risk with the Mahila Samman Savings Certificate, which has a fixed coupon of 7.5% for two years.
Therefore, it's possible that the government won't renew Mahila Samman Savings Certificate when it expires in March 2025, as per the CNBC report.
Here is a closer look at the important features of the Mahila Samman Savings Certificate.
Mahila Samman Savings Certificate
Deposit details
Minimum Rs.1000/- and maximum Rs.200000/-The deposit amount must be in multiples of Rs.100/-Only one deposit is allowed in one account.There is no cap on number of accounts for a single depositor subject to condition that the cumulative amount in all the accounts under this scheme shall not exceed ?200000/-A time gap of 3 months to be maintained between opening of two accounts under this scheme for the same customer.Interest details
The scheme has rate of interest 7.5% per annum.The interest shall be compounded quarterly and credited to the account.The eligible interest shall be paid at the time of closure/pre-closure/partial withdrawal of the account.Maturity details
The deposit under this scheme matures on completion of 2 years from the date of deposit.
Partial withdrawal
Maximum up to forty percent (40%) of eligible balance can be withdrawn after expiry of one year from the date of deposit.The partial withdrawal facility is available only once before maturity.Pre-mature closure
Pre-mature closure is permitted in the following cases, namely:On the death of the account holder.Medical support in case of life-threatening disease of the account holder.Death of the guardian resulting in undue hardship in operation or continuation of the account.For the above categories of pre-closures, interest on principal amount shall be payable at the prescribed rate of interest for the scheme.For reasons other than the above, pre-mature closure may be allowed any time after the expiry of 6 months from the date of opening.
Interest in case of such pre-mature closures shall be payable at lower by 2% than the prescribed Rate of Interest for the scheme.
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This story originally appeared on: India Times - Author:Faqs of Insurances
