The Mahila Samman Savings Certificate scheme, introduced in the 2023–2024 budget, is a special savings plan for women, offering a 7.5% interest rate with a maximum limit of Rs 2 lakh

Will Budget 2025 announce extension of Mahila Samman Scheme which offers 7.5% interest rate and ends on March 31, 2025? The scheme, aimed at promoting women's financial inclusion, is available until March 2025, with experts divided on its potential extension

The government introduced the Mahila Samman Savings Certificate, a one-time small savings plan for women, that is available until March 2025. It was announced as part of the "Azadi Ka Amrit Mahotsav" in the Union Budget 2023–2024.

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There is a strong need for increased funding to women-centric schemes. However, it is not sure if the Mahila Samman Scheme extension will be extended in the Union Budget 2025. Here is what experts have to say on the extension of Mahila Samman Savings Certificate.

This women savings scheme offers higher interest rate than 2-year bank FD and ends on March 31, 2025

Rajani Tandale, Senior Vice President, Mutual Fund at 1 Finance, says, “The Mahila Samman Savings Certificate, introduced in Budget 2023 as a limited-period investment opportunity, has played a crucial role in promoting women's financial inclusion and empowerment. While the scheme offers an attractive 7.5% interest rate and flexibility, it does not provide any tax benefits, and the maximum investment limit is capped at Rs 2 lakhs. Primarily designed to encourage savings among women in the lower-income group, it serves as an important initiative to build financial security.

With the scheme set to end on March 31, 2025, an extension in Budget 2025 would be a welcome move to further strengthen women's financial independence. Given the government’s focus on women-centric financial policies, it may consider either extending the scheme or introducing a similar investment alternative to sustain its impact. However, investors should not wait for an extension and should take advantage of the scheme while it is still available.”

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Sneha Jain, Founder & CEO @ Wealth Trust Capital Services, says, “It is not likely to get extended as the government has collected good response & deposits from this scheme last year. There is more shift towards equity investments & mutual funds. So, the response for the scheme wouldn't be as much as seen last year.”

Mahila Samman Savings Certificate scheme details
The minimum deposit required is Rs 1,000, and deposits must be made in multiples of Rs 100. The maximum limit per account holder across all accounts is Rs 2 lakh. The deposits are eligible for an annual interest rate of 7.5%, which is compounded quarterly and credited to the account, with payment made at the time of closure. If an account is opened or a deposit is made in violation of the rules, it will earn interest at the Post Office Savings Account rate.
The account can be prematurely closed in the event of the account holder’s death or under extreme compassionate grounds, such as a life-threatening disease of the account holder or the death of the guardian, upon submission of relevant documents. The account matures after two years from the date of opening, and the eligible balance will be paid to the depositor.

Additionally, after six months from account opening, closure is allowed without mentioning a reason, but the scheme interest will be reduced by 2%, meaning 5.5% interest will be paid.

This story originally appeared on: India Times - Author:Faqs of Insurances