Financial independence is crucial for women’s empowerment and the introduction of several schemes by the government to address this issue by promoting savings, investments and economic security is a good step toward achieving this goal. India has over 500 major schemes for the welfare of women, with the central government running around 100 and state governments implementing over 400. These schemes cover various objectives from educational initiatives and healthcare programs to employment and skill development schemes. Many of these schemes provide financial assistance to the women from poor economic backgrounds, and many encourage women empowerment by providing funds for entrepreneurial ventures.
In this article, we are going to talk about the central government backed schemes that focus on savings and investments for women.
Overview of Government-supported Savings Schemes for Women
The government offers many savings, investment and financial welfare schemes aimed to strengthen women’s economic and financial stability. Here’s a look at the current initiatives that provide benefits to the women.
| Scheme | Interest Rate | Tenure | Investment Limit | Tax Benefits | Best For |
|---|---|---|---|---|---|
| Mahila Samman Savings Certificate (MSSC) | 7.5% per annum (compounded quarterly) | 2 years | ₹1,000 to ₹2,00,000 | Interest is taxable | Women seeking safe and high short-term returns |
| Sukanya Samriddhi Yojana (SSY) | ~8.2% per annum (compounded annually) | 21 years (or until the girl turns 18 & marries) | ₹250 to ₹1.5 lakh per year | EEE tax benefits under Section 80C | Long-term savings for a girl child’s education & marriage |
| Public Provident Fund (PPF) | ~7.1% per annum (compounded annually) | 15 years (extendable in 5-year blocks) | ₹500 to ₹1.5 lakh per year | EEE tax benefits under Section 80C | Wealth creation & retirement planning with tax savings |
| National Savings Certificate (NSC) | ~7.7% per annum (compounded annually) | 5 years | Minimum ₹1,000 (no upper limit) | Section 80C deduction up to ₹1.5 lakh | Tax-saving investment with stable returns |
| Post Office Monthly Income Scheme (POMIS) | ~7.4% per annum | 5 years | ₹1,000 to ₹9 lakh (₹15 lakh for joint accounts) | Interest is taxable | Regular monthly income with zero risk |
| Senior Citizens Savings Scheme (SCSS) | ~8.2% per annum (paid quarterly) | 5 years (extendable by 3 years) | ₹1,000 to ₹30 lakh | Section 80C tax deduction on investment (interest is taxable) | Retired women seeking high returns |
| Atal Pension Yojana (APY) | Pension benefits ₹1,000 to ₹5,000 per month | Contributions until retirement (age 60) | ₹42 to ₹1,454 per month (based on age & pension) | Tax benefits under Section 80CCD(1) | Government-backed pension plan for women |
| Kisan Vikas Patra (KVP) | ~7.5% per annum | ~115 months (varies) | Minimum ₹1,000 (no upper limit) | Interest is taxable | Women looking for secure wealth accumulation |
The government periodically announces the revised interest rates for small savings scheme each quarter.
1. Mahila Samman Savings Certificate (MSSC) Scheme
Launched in 2023 by the Department of Economic Affairs, Ministry of Finance, MSSC is a short-term savings scheme only for girls and women. The scheme is available through all public sector banks, eligible private banks, post offices and eligible scheduled banks.
- Interest Rate: 7.5% per annum (compounded quarterly)
- Tenure: 2 years
- Investment Limit: ₹1,000 to ₹2,00,000
- Premature Withdrawal: Allowed after 1 year (up to 40% of the balance)
- Taxation: Interest is taxable
- Best For: Women looking for safe and relatively high returns within a short period.
- Where to Apply: Post offices and eligible public/private/scheduled banks
- Visit government portal www.myscheme.gov.in/schemes/mssc for more details.
2. Sukanya Samriddhi Yojana (SSY)
Indian government launched Sukanya Samriddhi yojana in 2015 as part of its ‘Beti Bachao, Beti Padhao‘ campaign. Under this scheme, the parents or guardians can open SSY account for their girl child immediately after the birth till she is 10 years of age to avail the benefits. The SSY account can be opened in Post offices and authorised banks.
- Eligibility: For a girl child (below 10 years), account opened by a parent or guardian
- Interest Rate: ~8.2% per annum (compounded annually)
- Tenure: 21 years (or until the girl turns 18 and marries)
- Investment Limit: ₹250 to ₹1.5 lakh per year
- Tax Benefits: Deposits qualify for deduction under Sex.80-C of I.T. Act. Interest earned in the scheme account is free from IT under Section 10.
- Best For: Long-term savings for education, financial security and marriage of the girl.
- Where to Apply: Post offices and designated banks
- Visit the official website of National Savings Institute for more details.
3. Public Provident Fund (PPF)
Launched by the Finance Ministry under Indian government in 1968, PPF is one of the most popular savings scheme open to all Indian citizens. The women can take advantage of the scheme’s good interest and tax benefits to secure their future.
- Eligibility: Any Indian citizen
- Interest Rate: ~7.1% per annum (compounded annually)
- Tenure: 15 years (extendable in 5-year blocks)
- Investment Limit: ₹500 to ₹1.5 lakh per year
- Tax Benefits: Fully tax-free under Section 80C
- Best For: Wealth creation and retirement planning with tax savings.
- Where to Apply: Post offices and banks
- Visit the official NSI website for more details.
4. National Savings Certificate (NSC) Scheme
This scheme was launched in 1989 by the department of economic affairs, ministry of finance, government of India to promote a culture of long-term savings among people. With a good interest rate on savings, the scheme also offers flexibility of opening individual or joint account and a loan facility if requested.
- Eligibility: Any Indian citizen
- Interest Rate: ~7.7% per annum (compounded annually)
- Tenure: 5 years
- Investment Limit: Minimum ₹1,000 and thereafter in multiples of ₹100 with no upper limit
- Tax Benefits: Qualifies for Section 80C deduction up to ₹1.5 lakh
- Best For: medium-term tax-saving investment with stable returns.
- Where to Apply: Post offices and banks
- Read more details on government’s website.
5. Post Office Monthly Income Scheme (POMIS)
This scheme is run by Post Office department under the Ministry of Finance. Under this scheme, the women can deposit every month and the interest is disbursed monthly.
- Eligibility: Any Indian citizen
- Interest Rate: ~7.4% per annum
- Tenure: 5 years
- Investment Limit: ₹1,000 to ₹9 lakh (₹15 lakh for joint accounts)
- Taxation: Interest is taxable
- Best For: Women who want a regular monthly income with zero risk.
- Where to Apply: Post offices
- Visit Post office website or Government’s website for more details.
6. Senior Citizens Savings Scheme (SCSS)
The SCSS is a government sponsored savings scheme and is designed for senior citizens, offering a fixed interest rate on the deposits, tax benefits and a regular income.
- Eligibility: Women aged 60+ (or 55+ for retirees under special conditions)
- Interest Rate: ~8.2% per annum (paid quarterly)
- Tenure: 5 years (extendable by 3 years)
- Investment Limit: ₹1,000 to ₹30 lakh
- Tax Benefits: Section 80C tax deduction on investment (interest is taxable)
- Best For: Retired women seeking a high-return savings option or regular income from interests on deposits
- Managing Authority: National Savings Institute, Ministry of Finance
- Where to Apply: Post offices and banks
7. Atal Pension Yojana (APY)
APY is a pension scheme aimed to providing an income security for old age or retirement to the women who are not income tax-payee, or are from unorganized sectors. The scheme is managed by the Pension Fund Regulatory and Development Authority (PREDA)
- Eligibility: Women aged 18-40 years
- Pension Amount: ₹1,000 to ₹5,000 per month (after 60 years)
- Monthly Contribution: ₹42 to ₹1,454 (based on age and pension amount)
- Tax Benefits: Contributions qualify for Section 80CCD(1) tax benefits
- Best For: Women looking for a government-backed pension plan
- Where to Apply: Banks and post offices
- Visit government portal for more information.
8. Kisan Vikas Patra (KVP) Scheme
Kisan Vikas Patra is a scheme that doubles the investment amount after a fixed period or maturity. The deposits continue to earn interest after the maturity. It falls under the small savings schemes backed by the government. This scheme is greatly beneficial to the women looking to increase their wealth or savings over a long duration, although all eligible Indian citizens can apply for the scheme.
- Interest Rate: ~7.5% per annum
- Tenure: ~115 months (varies as per government revisions)
- Investment Limit: Minimum ₹1,000 (no upper limit)
- Premature Withdrawal: Allowed after 2.5 years
- Taxation: Interest is taxable
- Best For: Women looking for secure wealth accumulation over long a period of time.
- Where to Apply: Post offices and authorised banks
Other Government-backed schemes to promote financial inclusion among women
- 9. Pradhan Mantri Jan Dhan Yojana (PMJDY): This scheme is designed to promote financial inclusion for women with no prior access to banking services. The scheme offers zero balance savings account, RuPay debit card, overdraft facility up to Rs 10,000 to the eligible women, Rs 2 lakh accidental and Rs 30,000 life insurance cover. Under this scheme, women can open a basic savings bank deposit account in any bank branch or any Bank Mitra outlet. PMJDY is one of the largest schemes run by the Finance Ministry under the Indian government with 55.14 crore beneficiaries. Visit official website for more information.
- 10. Fixed Deposits: Fixed deposits in banks typically offer interest rates in the range of 3% to 8.5% on savings depending on the tenure and bank. While fixed deposits are not directly backed by the government, they are partially covered under the Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of RBI. The fixed deposits in the scheduled banks (public, private, cooperative or small finance banks)are insured up to Rs 5 lakh per bank including principal and interest. FDs through NBFCs and companies are not covered under this policy, only banks covered under DICGC.
- 11. Employees Provident Fund (EPFO): One of the widely used savings scheme regulated by the Employees’ provident fund organisation (EPFO) under Ministry of Labour and Employment. This scheme helps employees build a safe government-backed retirement fund with tax benefits and compounding growth at an interest rate of 8.15% annually (subject to change as per government circulars). Employees contribute 12% of their basic salary + DA to EPF, while the employer also contributes 12%, of which 8.33% goes to the Employee Pension Scheme (EPS) and the remaining to EPF. Read the guidelines at EPFO website.
The government has continuously introduced many schemes for the benefits of women to uplift and support them in any way possible. While education, health, and other welfare schemes are essential, financial welfare schemes too play a key role in making women self-dependent and contribute to a greater economic participation.
Disclaimer: This article is for informational purposes only and should not be considered financial or investment advice.