Women are known to save more than men. For a long time, women have been saving coins and currency notes in rice boxes or cookie jars in the kitchen. While that is a popular practice even today, there are several savings schemes available in the market that pay good interest. In this article, we have shortlisted the top savings schemes for women in India.
11 Best Savings Schemes for Women
| Name of Investment | Rate of interest | Minimum investment | Maximum investment | Tenure | Tax Exemption |
| Post Office Savings Account (SB) | – | 100 | – | 5 years | – |
| Mahila Samman Savings Certificate | 7.50% | ₹ 1,000 | 2 Lakhs | 2 Years | The Government has not mentioned any tax benefits |
| Public Provident Fund (PPF) | 7.10% | ₹ 500 | Rs 1.5 lakhs | 15 Years | Tax exempted up to Rs. 1.5 lakh in a year under section 80C |
| Employees Provident Fund (EPF) | 8.15% | 8% of Basic Salary + 12% by employer | Investment until employment | 15 years | Tax exempted up to Rs. 1.5 lakh in a year under section 80C |
| Mutual Funds and SIP | – | 100 | No upper ceiling | 3 years | Investing in ELSS offers tax savings under Section 80C of the Income Tax Act. |
| Kisan Vikas Patra (KVP) | 7.50% | Rs. 1,000 | No upper ceiling | 10 Years | The Government has not mentioned any tax benefits |
| National Savings Certificate (NSC) | 7.70% | Rs. 1,000 | No upper ceiling | 5 Years | Tax exempted up to Rs. 1.5 lakh in a year under section 80C |
| Post Office Time Deposit Scheme | 6.9% to 7.5% | Rs. 1,000 | No upper ceiling | 1,2,3, or 5 Years | The investment under 5 year TD qualifies for the benefit of section 80C |
| Fixed Deposits | 3% to 8.5% | Rs. 500 | No upper ceiling | 7 Days to 10 Years | Tax-saving Fixed Deposits are exempted from tax up to Rs. 1.5 lakhs in a year under Section 80C |
Post Office Saving Schemes for Women
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1. Post Office Savings Account (SB)
A Post Office Savings Account is a simple savings option that women can open either on their own or together with another adult. It works much like a regular savings bank account.
To open an account, you need to start with a minimum deposit of ₹500. Withdrawals are easy too—you can take out as little as ₹50 whenever needed.
This account also offers an annual interest rate of 4%, making it a useful way to grow your savings over time while keeping your money safe and accessible.
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2. National Savings Recurring Deposit Account (NSC)
The National Savings Certificate (NSC) is a government scheme launched to encourage small savings among small and middle-income investors. You can invest in NSC through the nearest post office or any authorised bank. To invest in the scheme, you must be an Indian resident citizen. Even minors can invest through a legal guardian. NRIs, HUF, and private and public limited companies cannot invest in it.
The minimum investment in the scheme is Rs 1,000, which can be done individually or jointly. There is no limit on the maximum amount of investment. You will require identity proof such as PAN Card, Aadhar Card, Voter ID, Driving License, and Passport and address proof such as Aadhar Card, Passport, Utility Bills, or bank statement to invest in NSC.
The scheme pays a fixed interest of 7.7% per annum compounded annually but paid at maturity. The interest is automatically reinvested into the account every year for four years. At the time of maturity or at the end of the fifth year, the interest is paid to you. The investment is locked in for five years, so you cannot withdraw your money until maturity. If you want to withdraw prematurely, you will require a court order, which has to be submitted at the post office.
Investment in NSC qualifies for a tax deduction of Rs 1.5 lakhs per annum under Section 80C of the Income Tax Act, 1961. However, the interest and maturity proceeds are taxable as per your income tax slab.
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3. Public Provident Fund (PPF)
Public Provided Fund (PPF) is a government-launched investment scheme to encourage small savings for the long term. The scheme is open to all Indian citizens and not just to women. However, it is a great savings scheme for women as it pays 7.1% interest per annum and is completely risk-free. The interest is revisited every quarter by the Ministry of Finance.
The minimum investment in the scheme is Rs 500, and the maximum is Rs 1.5 lakhs per annum. Any investment above Rs 1.5 lakhs will not earn any interest. You can open only one PPF account in your name at the nearest post office or any authorised bank. To keep your account active, you must invest once a year for a tenure of 15 years.
The scheme matures after 15 years, but you can extend it for another five years. The investment is locked in for the entire duration, and you cannot withdraw your money. However, you can partially withdraw from the 7th year onwards and take a loan up to 25% of the money in the account between the 3rd and 6th year.
The scheme is a good long-term investing scheme and also allows you to save on taxes as the investment, interest and maturity proceeds are exempt from tax.
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4. Kisan Vikas Patra
Kisan Vikas Patra (KVP) is a government savings scheme introduced in 1998. The primary aim is to inculcate long-term financial discipline among Indian citizens. The scheme was originally intended for farmers, hence the name. However, eventually, the scheme has been opened to all Indian citizens.
To invest in KVP, you must be an Indian citizen. Even minors can invest in the scheme through their legal guardian. However, NRIs (Non-resident Indians) and HUFs (Hindu Undivided Families) cannot invest in this scheme.
You can open an individual or joint account with a minimum contribution of Rs 1,000. The contributions can be 5,000, Rs 10,000, or Rs 50,000 for a tenure of 10 years. There is no limit on the maximum amount of investment. The scheme pays a fixed interest of 7.5% per annum compounded annually. This means your investment will double in nine years and seven months.
Although the scheme has a ten-year tenure, you can withdraw your investments after the lock-in period of 30 months. Even if you don’t withdraw money after the ten-year tenure, you will continue to earn interest until you withdraw your investment.
There are no tax benefits for investing in this scheme. The investment, interest, and maturity amounts are taxable per income tax laws.
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5. Mahila Samman Savings Certificate
The government introduced the Mahila Samman Savings Certificate in January 2023 as a one-time savings scheme for a tenure of two years, starting April 1st 2023, to March 31st 2025. The primary reason for introducing this scheme is to empower women by increasing their participation in investments.
The minimum investment in this scheme is Rs 1,000, and the maximum is Rs 2 lakhs. You can open multiple accounts. However, the total investment in all the accounts shouldn’t be more than Rs 2 lakhs. Its tenure is two years, and the government will accept deposits only until March 31st 2025. The scheme offers a fixed interest of 7.5% per annum compounded quarterly but paid only at maturity.
To open a Mahila Samman Savings Certificate account, you must be an Indian citizen and a woman. If you are a minor, a guardian can open this account on your behalf. The scheme has a lock-in period of 2 years, but you can withdraw 40% of the amount prematurely. You can also pre-close your account only on certain conditions.
To open this account, you must have a Mahila Samman Savings Certificate account opening form, PAN Card, Aadhar Card, and any other government ID card. You have to submit these documents at the nearest post office and pay the amount in cash or cheque. Once done, the post office will issue a Mahila Samman Savings Certificate in your name.
At present, the government has not mentioned any tax benefits, so it is assumed that the interest is taxable as per your income tax slab rate upon maturity, and the investment doesn’t qualify for tax deduction.
Other Savings Scheme for Women
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1. Mutual Funds and SIPs
Apart from post office savings schemes, women have another option to grow their money—mutual funds and Systematic Investment Plans (SIPs). These allow you to invest small amounts, starting as low as ₹100, making them accessible for beginners. While they are a good way to build wealth over time, it’s important to note that these investments are not tax-free. Also, remember that mutual fund investments carry market risks, so it’s wise to understand the risks involved before starting.
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2. LIC (Life Insurance Corporation) Policies
For those looking for financial security and long-term benefits, LIC policies are a trusted option. These policies offer life coverage along with opportunities to save and invest for the future. Many people choose LIC policies to ensure financial protection for their families and to plan for future needs.
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3. Fixed Deposits
Fixed Deposits, or FDs, are one of the most popular savings schemes in the country. They have been a go-to scheme for all the Indians. FDs are an investment tool through which you save a fixed sum of money for a certain period of time for a predetermined interest rate.
The minimum investment in FDs is Rs 500 and can go up to Rs 500 crores. The tenure of the FDS ranges between 7 days and ten years, making them a viable short and long-term savings scheme. Banks pay a fixed interest on the money invested, which ranges between 3% to 8.5% per annum. The interest rate is different for different tenures and also changes across banks.
You can open an FD account individually or jointly and can open multiple accounts as well. Once you invest money in an FD, it is locked in for the entire duration. The interest is either paid regularly or at maturity, based on your preference.
You cannot break an FD, but you can take a loan against your FD from the same bank. The interest rate varies across banks but is usually 1-2% above the FD rate. The investment in tax-saving FDs qualifies for tax deduction under Section 80C. However, investment in all other FDs is taxable. Moreover, the interest is also taxable as per your income tax slab rate.
Schemes For Women in India by Banks
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01
Mahila Udyam Nidhi Yojana
The Mahila Udyam Nidhi Yojana is a government-backed initiative designed to encourage women to start and grow their businesses. It is a collaboration between Punjab National Bank and the Ministry of Finance. Under this program, women can access loans that cover up to 25% of their project costs, with a maximum limit of ₹2.5 lakh per project. This financial assistance helps women entrepreneurs take steps toward turning their business ideas into reality.
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02
Dena Shakti Scheme
The Dena Shakti Scheme is another program aimed at supporting women in business, offered by DENA Bank. It provides financial assistance in the form of both term loans and working capital to help women entrepreneurs manage their business needs. This scheme offers loans at a discounted interest rate of 25% and allows repayment over a period of one to three years, making it a helpful option for those starting or expanding their ventures.
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03
Cent Kalyani Scheme
The Cent Kalyani Scheme, from the Central Bank of India, is tailored for women who are launching new projects or expanding existing ones. It specifically targets micro and small enterprises, including sectors like handloom weaving, handicrafts, and professional services such as those provided by doctors and engineers. This scheme aims to provide women in these industries with accessible financing options to grow their work and reach new opportunities.
Conclusion
To become financially independent, saving and investing money is as important as earning money. Hence, women need to understand that it’s okay to make financial decisions on their own. If you can’t decide where to invest, you can always consult a financial advisor who can help you become financially stable.
