Do you know how to calculate returns of Mahila Samman Savings Scheme to know what is the maturity amount? The recently introduced women-oriented small savings scheme Mahila Samman Scheme (2023) or Mahila Samman Yojana (2023) offers 7.5% interest rate.
In this article, you will also find a useful excel based Mahila Samman Savings Calculator that you can use to find the returns and maturity value of Mahila Samman Yojana in 2023.
Related Reading – Mahila Samman Savings Scheme Features & Benefits (Review)
Let’s now see how to calculate returns on your Mahila Samman Savings Scheme investments?
How to calculate Mahila Samman Savings Scheme returns (2023)?
Mahila Samman Savings Scheme is a government-backed small savings scheme available only for women/girls in India. The tenure of the new small savings scheme for women is 2 years.
The interest rate is fixed at 7.5% per annum for a period of 2 years.
But as the interest is compounded on quarterly basis, the effective interest rate comes close to 7.71% per annum.
I have created a simple calculator for those looking to calculate the maturity value of Mahila Samman Savings Scheme. Using the calculator, if you invest Rs 2 lakh for 2 years at 7.5% in Mahila Samman Savings Scheme, then on maturity you get about Rs 2.32 lakh before taxes. This is a yield of 7.71% due to quarterly compounding, even though the rate of interest on Mahila Samman Scheme is 7.5% per annum.
Here is the working as per the Mahila Samman Savings Scheme Maturity Calculator:
You can download and use the calculator yourself to try it out:
Download Mahila Samman Savings Scheme Calculator (2023)
And what about the post-tax returns?
There are no special tax benefits or tax exemption available on the interest earned from the Mahila Samman Savings scheme. So the interest income from the Mahila Samman Savings scheme is fully taxable and gets added to your income and is taxed as per the applicable income tax slabs.
While the intention of the government to provide a women-specific small savings scheme is appreciable and the Mahila Samman Scheme (or many call it as Mahila Samman Nidhi Yojana) is open to all women regardless of their age or occupation, the fact is that the upper limit of Rs 2 lakh and a very short 2-year tenure make it ‘not’ very useful for many women.
Though ladies who have limited savings and want reasonable returns over the short term can still consider this PM Mahila Samman Yojana versus bank fixed deposits which offer low-to-similar returns. For women earners with larger surplus and bigger asset base, the small limit of Rs 2 lakh may not be of much use and they can skip it to reduce cluttering their savings portfolio.
So that is how the maturity value, interest and returns on Mahila Savings Yojana will be calculated using Mahila savings scheme calculator (2023) in India.