Best Post Office Schemes for Women in 2023

10 min read • Published 26 October 2022
Written by Samarth Tandon
The Best Post office Scheme for Women

An Investment helps individuals multiply their savings and meet their financial needs. While numerous investment schemes are available in the country, a few popular schemes focus more on women’s growth. Indian post offices offer a few such schemes to promote the concept of investment among women.

Investing in post office women’s schemes helps ladies plan their futures and manage their finances efficiently. Let us go through a few of the most popular investment schemes offered by post offices that could benefit women.

9 Best Post Office Schemes For Women

Investment SchemesTenureInvestment AmountEligibilityInterest RateTaxation Benefits
Mahila Samman Certificate2 years₹ 1,000 to ₹ 2 lakhsWomen / Girl Child7.5% p.a.NA
Sukanya Samriddhi Yojana21 years₹ 250 to ₹ 1.5 lakhsGirl Child below 10 years.8% p.a.EEE category under 80C
Post Office Savings AccountNo lock-inMinimum investment: ₹ 500Any Indian Citizen4% p.a.Interest up to ₹10,000 is exempted under 80TTA
Recurring Deposit5 yearsMinimum investment: ₹ 100Any Indian Citizen6.7% p.a.Exempted up to ₹ 1.5 lakhs under 80C
Post Office Time Deposit Account1, 2, 3 &5 yearsMinimum investment: ₹ 1000Any Indian CitizenDiffer depending upon tenureInvestment for 5 years is exempted under 80C.
Post Office Monthly Income Scheme5 years₹ 1000 to ₹15 lakhs. Any Indian Citizen7​.4​% p.a.No TDS
Public Provident Fund15 years₹500 to ₹1.5 lakhs. Any Indian Citizen7.1% p.a.EEE category under 80C
Kisan Vikas Patra115 monthsMinimum investment: ₹ 1000Any Indian Citizen7.5% p.a., and the amount doubles on maturityNA
National Savings Certificate5 yearsMinimum investment: ₹ 1,000Any Indian Citizen7.70% p.a.Exempted up to ₹ 1.5 lakhs under 80C

Mahila Samman Savings Certificate

Mahila Samman Savings Certificate is a one-time scheme launched on April 1, 2023, and is open for investment until April 1, 2025. The maturity is 2 years, and the interest will be compounded quarterly. You can open multiple accounts within a gap of 3 months from the opening of your last account, but the total investment inclusive of all the accounts should not be more than ₹ 2 lakhs.

This is a government-guaranteed savings plan to empower women by increasing their participation in the investment sector. Here are the eligibility criteria and the features of the scheme.

Any woman or guardian on behalf of their girl child can invest in this scheme. The current interest rate for the Mahila Samman Savings Certificate is 7.5%.

Sukanya Samriddhi Yojana (SSY)

This is one of the most famous investment plans for a girl child with a comparatively higher interest rate, often in the 7-10% range. Parents of a girl will be able to deposit an amount ranging between ₹250 to ₹1.5 lakhs per annum under this post office scheme for ladies. The account will mature after 21 years have passed since the account’s opening or when she gets married at 18 years old (a month before or 3 months after the date of marriage).

The invested amount and interest are transferred to the girl’s account upon maturity. Deposits under this scheme qualify for deductions under Section 80C of the Income Tax Act. As per Section 10 of the Income Tax Act, interest on the account is tax-free. Currently, the interest rate of SSY is 8%.

To invest in this scheme, you can open an SSY account with your nearest post office branch or the authorised banks.

Post Office Savings Account

This is one of the ideal post office savings schemes for ladies to invest their money and enjoy a decent interest rate (4%). Any adult woman can open this account alone or jointly. Even minors with legal guardians can have their own post office savings accounts. You can open this account for ₹500 only. In addition, you can withdraw amounts starting from ₹50, and there is no upper limit for depositing money.

You can open only one account under your name, and no withdrawals are allowed if your account balance is less than ₹500. To open an account, complete the form online or visit your nearest post office branch.

You can also avail taxation benefits by investing in a Post Office Savings Account. Interest up to ₹10,000 earned in a Financial Year is exempted from taxable income under section 80TTA of the Income Tax Act.

Recurring Deposit (RD)

Under this post office scheme, a monthly instalment amount is deposited to an RD account. At the end of the term, an interest percentage is compounded and added to the principal amount. Then, the matured amount and interest are returned to the customer. This process is similar to an RD in banks, but the interest offered in post offices is higher. Based on the tenure of the recurring deposit, the interest percentage is subject to increase.

Women who save small amounts every month find this option more convenient and helpful. Individuals can also break the RD by paying penalty charges, usually around 1% under this scheme. The current interest rate for RD is 6.7​% per annum.

Also Read: PPF (Public Provident Fund): Deposit Limit, Eligibility and Tax Benefits

Post Office Time Deposit Account

This post office scheme for women entails investments similar to fixed deposits offered by banks. However, these time deposit accounts come with a standard tenure of 1, 2, 3, or 5 years. Once the money has been deposited into this time deposit scheme, it cannot be withdrawn for the predetermined period. However, the deposited money and the matured amount are exempted from tax under Section 80C (applicable only for 5-year deposits). The interest rates for the post office time deposit scheme are as follows:

TenureInterest Rate
1 Year6.9%
2 Years 7.0%
3 Years7.0%
5 Years7.5%

Interest rates are updated regularly under this scheme. It is calculated quarterly and paid annually. You can open a Time Deposit Account with a minimum of ₹1000 and multiple of ₹100—no maximum limit for investment. Also, you can open any number of accounts.

Post Office Monthly Income Scheme (POMIS)

Stable monthly income is the core factor of this investment scheme. Women who enrol in this scheme must deposit a lump sum into this one-time investment account. They could also choose a tenure for this scheme, throughout which the individual will receive a monthly income. This monthly income is the interest rate earned. So, the higher the amount invested, the higher the monthly income. In addition, the monthly income is also directly proportional to the scheme’s tenure.

Since post offices are under the direct control of the Government of India, this investment scheme is said to be a low-risk investment plan and one of the finest post office schemes for women.

All individuals are allowed to invest in this scheme with a minimum investment of ₹1000, and the maximum deposit limit is ₹9 lakh in a single account and ₹15 lakh in a Joint account.

Public Provident Fund (PPF)

This investment plan is similar to SSY; the only difference is that anyone can open a PPF account. The tenure of this policy is 15 years, and it can be further extended in blocks of 5 years.
An interest percentage of 7.1% is offered for this plan. This rate of interest is subject to change every quarter. The maximum limit one can invest in this plan is ₹1.5 lakhs per annum. The minimum amount to be invested in PPF is ₹500 per annum. The amount can be deposited fully or in instalments.

A maximum of twelve instalments are allowed under this scheme. At the end of the tenure, the matured amount will be credited back to your bank account if you choose not to extend it. This post office scheme falls under the EEE basket; tax exemption up to ₹1.5 lakhs can be claimed under Section 80C.

Also Read: NSC vs PPF: Which One is Better for You

Kisan Vikas Patra (KVP)

KVP certificates will be issued to individuals who deposit a one-time investment amount under this post office scheme for women. After the tenure, the doubled amount is returned to the customer. For example, if you invest ₹10 lakhs now, you will receive ₹20 lakhs after 10 years.

However, the amount deposited must be fixed and withdrawn before maturity. Doing so will attract penalty charges. Women who wish to double their money in a medium-term plan should opt for this scheme.

The current interest rate for KVP is 7.5% annually and doubles in 115 months. The minimum amount required to start investing in KVP is ₹1,000 without any maximum deposit limit. You can open any number of accounts.

National Savings Certificate (NSC)

This scheme offers an interest percentage of 7.7% and comes with a lock-in period of 5 years, and a minimum amount of ₹1000 has to be invested. This savings scheme is mainly known as a fixed-income, low-risk investment.

Individuals can avail of tax exemption benefits under Section 80C. The limit for tax exemption is ₹1.5 lakhs. Any amount more than that will not be considered for exemption, as the upper limit for 80C is ₹1.5 lakhs.

Also Read: Post Office Scheme to Double the Money

Final Words

There are plenty of post office savings schemes for women available when it comes to investments. But before selecting an investment plan, there are a few things to consider. The amount of risk an individual is willing to take and the rate of return drive the choice of investment. Any woman would like to see their wealth multiply rather than stay idle in a savings account. So, investing money across different post office schemes and developing your financial portfolio would be the need of the hour.

FAQs about Post Office Scheme for Women

Which is better, Recurring Deposits in banks or Recurring Deposits in post offices?

Both offer the same features to their customers. However, the interest percentage offered by post offices for an RD is slightly higher than banks. For this reason, many people opt for post offices to open RDs. 

Can I open a PPF for my daughter?

Yes, a PPF account can be opened for a minor by the parents or the legal guardian.

Can I open an SSY for my son?

SSY is specific to girl children. Boys cannot enjoy the benefits of SSY. However, a similar option for investment is a PPF account, which can be opened by anyone. Both schemes have the same features, including the upper investment limit, lock-in period, and interest rate. 

How to open a post office savings scheme for women?

Visit the nearest post office and request a savings account form. Fill in the form and submit the required documents to the post office. Documents like PAN, Aadhaar, and address proof are critical to opening a savings account. You might also have to give your passport-sized photograph to generate the passbook. 

Are fixed deposits in small finance banks more beneficial?

Small finance banks also offer FDs. The interest offered is always higher than the bank’s FDs. The senior citizen quota is even more beneficial, which offers a 0.5 – 1% increase on top of the normal FD interest. 

How to get Mahila Samman Saving Patra?

To invest in Mahila Samman Saving Patra, fill out the application form, including the declaration and nomination details. Submit the form along with the requested documents to the nearest branch office of the bank. Make the initial deposit for opening the scheme account.

Is the Mahila Samman Savings Certificate better than the NSC scheme?

The Mahila Samman Savings Certificate program has a tenure shorter than the NSC, but the interest rates offered by the latter are higher. However, the Mahila Samman Savings Scheme is only for women, but anyone can invest in NSC.

Which is the best post office scheme for a female child?

For a girl child, the Post Office Sukanya Samriddhi Yojana is an excellent investment scheme. It offers an attraction return of 8% per annum and comes under the EEE category, where the investment amount, the interest received, and the maturity amount are all exempted from tax

Was this helpful?

Samarth Tandon

Investment Principal
Worked with more than 50 institutions for their Debt raise post MBA. Previously worked with Northern Arc, Unitus Capital, Nomura and Darashaw.

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