Mahila Samman Savings Certificate vs bank FDs: Which is offering higher interest rate?

economictimes.indiatimes.com:

The Mahila Samman savings scheme now offers rates that are greater than the majority of bank deposit rates, however the maximum investment is only Rs 2 lakh. Compared to many other small savings vehicles, this may be an excellent choice for women wanting high safety and a shorter term of locking in money.

Let us compare Mahila Samman Certificate with big banks fixed deposit interest rates.

Mahila Samman Certificate interest rate

It provides a fixed interest rate of 7.5% for a two-year period. he minimum investment starts from Rs 1,000 while the maximum investment limit can go up to Rs 2 lakh. The interest is compounded quarterly but paid on maturity.

Withdrawal
After a year, you are allowed to withdraw up to 40% of the amount. The Mahila Samman Savings Certificate account may be prematurely closed without penalty in the event of the account holder's death or in the event of exceptionally compassionate circumstances, such as the death of the guardian or a life-threatening illness. Additionally, you can close the account with a fee and without providing a reason after six months after opening it.

Also read: Post office schemes interest rate 2023: Which small savings scheme offers highest interest rate

Penalty
Please note that the interest rate will be reduced by 2% if you remove money from this scheme before the scheduled date. The interest rate that you would receive would be 5.5%.

The big banks currently offer interest rates that range from 3% to 7.25%, depending on the duration, including State Bank of India (SBI), HDFC, ICICI, Canara Bank, Yes Bank, and PNB .

SBI
State Bank of India offers interest rate between 3% to 7.10% for tenure from 7 days to 10 years. On tenure between 1 year to less than 2 years, SBI