When it comes to saving for the future financial security of women and girls in India there are two well-known government-sponsored saving schemes namely Mahila Samman Savings Certificate and Sukanya Samriddhi Yojana (SSY). They are both popular due to promising interest rates and various specifics fitting different preferences.
Mahila Samman Savings Certificate & Sukanya Samriddhi
The Mahila Samman Savings Certificate can be issued in the name of any woman for herself or in the name of a girl below 18 years old by the guardian. However, the Sukanya Samriddhi Yojana is aimed at providing the girl child aged 10 years or below and the account is opened by the guardian.
The minimum amount of deposit required for the Mahila Samman scheme is Rs 1000, and the maximum limit overall based on all accounts of the same person is Rs 2 lakh. Sukanya Samriddhi can be opened with a minimum deposit of Rs 250 and the maximum allowed deposit is Rs 1. 5 lakh annually.
Interest Rates, Withdrawal and Maturity
The Mahila Samman Savings Certificate provides 7. 5% annual interest rate with compounding done on a quarterly basis. However, Sukanya Samriddhi provides an interest rate of slightly higher at 8.2% annual interest rate, compounded annually.
With regards to Mahila Samman, it can be withdrawn 40% after one year and the account period is 2 years. As for withdrawals, Sukanya Samriddhi allows withdrawals after attaining the age of 18 years or after passing the 10th standard, and the account completes 21 years or the girl gets married.
Premature Closure
Each of the schemes permits premature closure on grounds of, for instance, death of the account holder or for other compassionate circumstances. Nevertheless, the Mahila Samman scheme levies a penalty of 2% for premature closure after 6 months, while Sukanya Samridhi can be closed only after five years as per certain conditions.
Mahila Samman Savings Certificate Vs. Sukanya Samriddhi Yojana, choose from the best. Know the interest rates, eligibility and other details. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
