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Financial Independence For Women: Empowering Through Fixed Deposits

mahindra-finance-author

by Mahindra Finance

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March 6, 2024

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5 mins read

For most women in India, managing finances can be a challenging task. However, one effective way to grow your savings and secure your financial future is through fixed deposits (FDs). FDs offer a safe and reliable investment option that provides guaranteed returns. In this comprehensive guide, we will explore the benefits of FDs for women, compare the best FD rates available, and provide you with practical tips on maximising your savings.

How are fixed deposits beneficial for women?

Fixed deposits for women are a popular investment choice due to their simplicity and security. When you invest in a fixed deposit, you deposit a certain amount of money with a financial institution, such as a bank or non-banking financial company (NBFC), for a specific tenure at an agreed-upon interest rate. At the end of the term, you receive your principal amount along with accrued interest.

What makes fixed deposits unique? Unlike other investment options that may be subject to market fluctuations, FDs offer risk-free returns. They are low-risk investments suitable for both short-term and long-term goals. Additionally, they provide flexibility in terms of tenure options ranging from a few months to several years.

Top fixed deposit schemes for women by the government

Financial institutions have recognised the importance of empowering women financially and have launched attractive fixed deposit schemes exclusively designed for them. Let's take a look at some notable schemes:

Mahila Samman Savings Certificate: The Mahila Samman Savings Certificate, introduced by the Union Finance Minister as part of the Azadi ka Amrit Mahotsav, is a government-backed scheme aimed at promoting women's financial inclusion and independence. Here are some key features of this empowering scheme:

  • Government backing: The scheme is backed by the government, ensuring no credit risk for the investors.
  • Eligibility: Open to women and minor girls, allowing them to invest in their financial future.
  • Flexible deposits: Minimum deposit of Rs. 1,000 with a maximum limit of Rs. 2 lakh per account.
  • Attractive FD interest rates for females: Fixed interest rate of 7.5% p.a., credited quarterly.
  • Tax benefits: No tax advantage is available for investments made in Mahila Samman Saving Certificate.
  • Partial withdrawal: Flexibility to withdraw up to 40% after one year.

Sukanya Samriddhi Yojana: The Sukanya Samriddhi Yojana is a unique scheme introduced under the Beti Bachao Beti Padhao initiative, focusing on securing the future of girl children through financial planning. Here's what you need to know about this women fixed deposit scheme:

  • Beneficiary criteria: Available for girl children from birth up to 10 years, promoting long-term savings.
  • Deposit flexibility: Minimum deposit of Rs. 250 per year up to Rs. 1.5 lakh annually.
  • Interest rates: Enjoy an attractive interest rate of 8% p.a., compounded annually.
  • Tax benefits: Avail tax exemption on investments up to Rs. 1.5 lakh under Section 80C of the Income Tax Act.
  • Educational support with withdrawal: Withdraw 50% of the balance for educational expenses with valid proof.

By investing in a fixed deposit for women like Sukanya Samriddhi Yojana, you can ensure a secure financial future for your daughter, covering her education and marriage expenses.

Comparison between fixed deposit for women schemes

Both the Mahila Samman Savings Certificate and Sukanya Samriddhi Yojana are tailored towards empowering women financially. Let's compare these schemes based on key parameters:

ElementsMahila SammanSukanya Samriddhi
EligibilityFor both women and minor girlsSpecifically for girls
Deposit limitsDeposits up to Rs. 2 lakhHas a cap of Rs. 1.5 lakh annually
Fixed deposit interest rates for womenA fixed rate of 7.5% p.aAn interest rate of 8% p.a
Maturity periodMatures after two yearsHas a tenure of 21 years or upon
the girl child's marriage after turning 18
Tax BenefitsNo benefitsTax exemption on investments up to Rs. 1.5 lakh

Key takeaways

Fixed deposits offer women a secure and stable investment avenue to grow their wealth. By taking advantage of exclusive FD rates for women and government-backed schemes like the Mahila Samman Saving Certificate, women can enhance their financial security and achieve their long-term financial goals.

Whether you are an entrepreneur looking to expand your business or a homemaker planning for your family's future, opening a fixed deposit for women provides financial stability and may offer attractive interest rates. Remember, Mahindra Finance offers a range of tailored financial solutions that can complement your investment strategy and help you achieve your financial aspirations. Take the first step towards securing your financial future today.

Frequently Asked Questions

Q1: What are the benefits of fixed deposits for women?

A1: Fixed deposits for women offer stability, security, and higher interest rates specifically tailored for female account holders. They provide an opportunity for women to grow their wealth while ensuring capital preservation.

Q2: Do FD rates vary for women compared to men?

A2: Yes, FD rates for women are generally higher than regular FD rates. Banks offer these exclusive rates to acknowledge women's contribution to the economy and empower them financially.

Q3: Can businesswomen benefit from fixed deposits?

A3: Absolutely! Businesswomen can maximize returns by investing in business fixed deposits. These fixed deposits for women offer competitive interest rates and serve as an excellent avenue for growing business capital.

Q4: Are there any government-backed schemes specifically designed for women?

A4: Yes, the Mahila Samman Saving Certificate is a government-backed scheme designed exclusively for women and girls. It offers high interest rates, providing an excellent opportunity for women to secure their financial future.

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