Investing in saving schemes is one of the best ways to secure financial independence and build wealth over time. For women in India, the government has introduced several saving schemes that offer attractive interest rates and long-term benefits. These schemes are designed to empower women and help them achieve financial stability. Below, we explore the best saving schemes for women that offer high returns and guaranteed benefits.
1. Mahila Samman Savings Certificate (MSSC)
One of the most popular and attractive schemes for women is the Mahila Samman Savings Certificate (MSSC). Launched in 2023 by the Indian government, this scheme is designed specifically for women and offers a high interest rate of 7.5% per annum.
Key Features of the Mahila Samman Savings Certificate:
- Deposit Range: You can invest a minimum of ₹1,000 and up to ₹2 lakh.
- Interest Rate: A guaranteed 7.5% interest rate is offered, which will be credited to the account annually.
- Maturity Period: The scheme has a tenure of 2 years.
- Interest Calculation: For a ₹2 lakh deposit, you can earn an interest of ₹32,044 on maturity.
- Partial Withdrawal: After one year, you can withdraw up to 40% of the eligible balance.
- Eligibility: The scheme can be opened in the name of a woman, including your wife, mother, or daughter.
Why Choose MSSC?
- Safe and Government-backed: This is a low-risk investment as it is backed by the Indian government.
- High Interest: With an interest rate of 7.5%, it offers better returns compared to traditional savings accounts.
- Flexible: With partial withdrawal allowed, this scheme offers flexibility for those who may need access to funds in an emergency.
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2. Public Provident Fund (PPF)
The Public Provident Fund (PPF) is one of the most well-known and reliable saving schemes for women. It offers long-term benefits and tax-free returns, making it an attractive option for anyone looking to save for retirement.
Key Features of PPF:
- Deposit Range: Minimum of ₹500 to a maximum of ₹1.5 lakh per year.
- Interest Rate: The interest rate is 7.1% per annum, compounded annually.
- Maturity Period: The maturity period is 15 years, and the scheme can be extended in blocks of 5 years after maturity.
- Tax Benefits: PPF contributions are eligible for tax deductions under Section 80C of the Income Tax Act.
- Withdrawals: Partial withdrawals are allowed after 6 years.
Why Choose PPF?
- Tax-Free Returns: The interest earned and the maturity amount is completely tax-free, making it ideal for long-term savings.
- Secured Investment: It is a government-backed scheme, ensuring safety and reliability.
3. Sukanya Samriddhi Yojana (SSY)
The Sukanya Samriddhi Yojana (SSY) is a saving scheme exclusively for the girl child, aimed at securing their future educational and marriage expenses.
Key Features of SSY:
- Deposit Range: Minimum deposit of ₹250 and a maximum of ₹1.5 lakh per year.
- Interest Rate: The current interest rate is 8.0% per annum, compounded annually.
- Maturity Period: The maturity period is 21 years from the date of the girl’s birth.
- Tax Benefits: Contributions to SSY are eligible for deductions under Section 80C.
- Eligibility: Only a girl child under the age of 10 is eligible for this scheme.
Why Choose SSY?
- High Interest: SSY offers one of the highest interest rates compared to other government-backed saving schemes.
- Focused on Girl Child: The scheme ensures that the girl child has sufficient funds for her future needs like education and marriage.
- Tax-Exempt: Like PPF, SSY also provides tax exemptions on the amount invested and the interest earned.
4. Fixed Deposit (FD) for Women
Fixed Deposits (FDs) are one of the safest investment options available. For women, many banks offer additional interest rates, making it a popular choice.
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Key Features of FD:
- Deposit Range: You can invest a lump sum amount ranging from ₹1,000 to ₹10 lakh (varies by bank).
- Interest Rate: Women typically get 0.5% higher than the regular interest rate offered by banks. The rate varies from 5.5% to 7% depending on the bank and tenure.
- Maturity Period: FDs typically have tenures ranging from 7 days to 10 years.
- Premature Withdrawal: Premature withdrawal is allowed, though it may involve a penalty.
- Taxation: Interest earned on FDs is taxable.
Why Choose FD for Women?
- Safety: Fixed deposits are one of the safest investment options available.
- Higher Interest for Women: Many banks offer additional benefits for women, making this an even better choice for female investors.
- Short-Term and Long-Term Flexibility: FDs offer both short-term and long-term investment options, depending on your financial goals.
5. National Savings Certificate (NSC)
The National Savings Certificate (NSC) is another great option for women looking to invest in a safe and reliable scheme. This scheme is backed by the government and offers good returns with tax benefits.
Key Features of NSC:
- Deposit Range: You can invest in multiples of ₹100, with no upper limit.
- Interest Rate: The interest rate is 6.8% per annum, compounded annually.
- Maturity Period: NSC has a fixed tenure of 5 years.
- Tax Benefits: The principal amount invested is eligible for tax deductions under Section 80C.
- Tax on Interest: Interest earned is taxable, but it is reinvested, and the amount gets added to the principal.
Why Choose NSC?
- Government Backed: The NSC is a secure option backed by the Indian government.
- Tax Deductions: NSC offers tax benefits under Section 80C, making it an ideal investment for those looking to reduce their taxable income.
- Fixed Returns: The returns are predictable and guaranteed, offering peace of mind.
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Final Thoughts
Women have unique financial needs, and investing in the right schemes can help secure their future. The schemes mentioned above, including the Mahila Samman Savings Certificate, PPF, SSY, FD, and NSC, offer attractive interest rates and solid returns. Whether you’re saving for your child’s education, planning for your retirement, or building a financial cushion, these schemes can help you achieve your goals.
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