Mahila Samman Savings Certificate vs Bank FDs: Which investment option is offering highest interest rate? In contrast, bank FD rates for two-year tenures vary, with senior women citizens receiving additional benefits. Both options include early withdrawal terms, but penalties differ
The Mahila Samman Savings Certificate (MSSC) and bank fixed deposits (FDs) are reliable investment options for individuals seeking safe and stable returns. While MSSC is a government-backed savings scheme exclusively designed for women, bank FDs are available to all investors.#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;}
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If you are a woman investor or looking to invest on behalf of female family members, here is a quick comparison of fixed deposit interest rates offered by banks. It is important to note that the Mahila Samman Savings Scheme offers a fixed interest rate to each woman investor. However, the FD interest rate can vary depending on the investor's age.
Also read: FD interest rate up to 9.10%: 6 banks that have revised fixed deposit interest rate in February 2025; Check details
Comparison of interest rate on Mahila Samman Savings Certificate and Bank FDs
Features of Mahila Samman Savings Scheme
Interest rate on Mahila Samman Savings Certificate
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Mahila Samman Savings Scheme offers 7.5% interest per annum. The interest will be compounded quarterly, credited to the account, and paid at the time of account closure. The minimum investment is Rs 1,000, with a maximum investment limit of Rs 2 lakh. The account will mature two years from the date of investment. The scheme ends on March 31, 2025. Women investors will not be able to invest in the scheme from April 1, 2025, onwards.
Premature withdrawal from Mahila Samman Savings Certificate
The scheme allows premature withdrawal one year after the completion of the investment. After a year, you can withdraw up to 40% of the amount.Premature closure of the Mahila Samman Savings Certificate is allowed. The account can be closed prematurely after six months of opening without any reason. However, a penalty of 2% will be applicable. The interest rate of 5.5% will be paid on the premature closure of the account.
However, the penalty will not be applicable if the account is closed due to the death of the account holder or in the event of exceptionally compassionate circumstances, such as the death of the guardian or a life-threatening illness.
Current interest rate on Bank FDs
Here is the list of interest rates offered by banks with two-year tenures.State Bank of India: SBI is currently offering interest rates between 3% and 7.10% per annum for tenures from 7 days to 10 years. For tenures between 1 year and less than 2 years, SBI offers 6.80% for general citizens. An additional 50 bps will be paid to women senior citizens.
HDFC Bank: The bank is offering an interest rate between 3% and 7.35% per annum for tenure from 7 days to 10 years. On tenure between 18 months to less than 2 years months, HDFC Bank offers 7.25% for general citizens. An additional 50 bps will be paid to women senior citizens.
Canara Bank: The bank offers an interest rate between 4% and 7.25% per annum for tenures from 7 days to 10 years. For tenures above 1 Year to less than 2 Years, Canara Bank offers 6.85% for the general public. It provides the highest FD interest rate of 7.25% for 444 days (1 year, 2 months, and 19 days). An additional 50 bps will be paid to the women senior citizens investors.
Axis Bank: The bank offers interest rates between 3% and 7.25% per annum on tenures ranging from 7 days to 10 years. It also offers a 7.25% FD interest rate on tenures between 15 months and 2 years. An additional 0.50% will be paid to women senior citizen investors.
Yes Bank: Yes Bank offers interest rates between 3.25% and 8% per annum on tenures ranging from 7 days to 10 years. The bank currently provides 8% per annum on 18-month tenures and 7.75% on 18-month and 1-day tenures to less than 24 months. The bank will offer an additional 0.50% interest rate to senior citizens.
IndusInd Bank: IndusInd Bank offers interest rates between 3.50% and 7.99% per annum on tenure ranging from 7 days to 10 years. The bank offers 7.99% per annum on FD interest on tenure of 1 Year 5 months to below 1 Year 6 months and 7.75% on 1 Year 6 months up to 2 years.
FD premature withdrawal rules
It is important to know the premature withdrawal rules when making an investment in an FD. Premature withdrawal refers to the act of withdrawing a fixed deposit or other term deposit prior to its maturity date.
Different banks impose different penalty charges. The penalty typically involves a reduction in interest rates, which can range from 0.5% to 1%.
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This story originally appeared on: India Times - Author:Faqs of Insurances
