Mahila Samman Savings Certificate Scheme vs Bank FDs with high interest rates: Where should you invest?

 

Mahila Samman Savings Certificate Scheme will be made available for a period of two years till March 2025

In a move towards women empowerment, Finance Minister Nirmala Sitharaman, while presenting the Budget 2023, launched a one-time small savings scheme for women investors, known as Mahila Samman Savings Certificate (MSSC).

Mahila Samman Savings Certificate (MSSC) Savings Scheme: Key Points to Know

Mahila Samman Savings Certificate Scheme: Eligibility

The deposit can be made in the name of woman or girl child.

Mahila Samman Savings Certificate: Amount

The maximum deposit amount has been kept at ₹2 lakh.

Mahila Samman Savings Certificate Scheme: Tenure

The Mahila Samman Savings Certificate will be made available for a period of two years till March 2025.

Mahila Samman Savings Certificate Scheme: Interest Rate

It will provide deposit facility up to Rs 2 lakh in the name of women or girls for a period of 2 years at a fixed interest rate of 7.5 per cent.

Mahila Samman Savings Certificate: Withdrawal Limit

The Government of India has allowed the option of partial withdrawal in the Mahila Samman Savings Certificate Scheme.

Mahila Samman Savings Certificate: Tax Benefits

Small savings schemes are eligible for significant tax benefits under section 80C of the Income Tax Act. However, the taxation structure of the scheme is not yet known.

Mahila Samman Savings Certificate vs Bank FD: Interest Rate

The country's top lender State Bank of India (SBI) offers 6.75% less interest than many private and small finance banks. HDFC Bank, ICICI Bank and Kotak Mahindra Bank offer an interest rate of 7% on deposits maturing within two years.

Amit Gupta, MD, SAG Infotech, said that the Mahila Samman Savings Certificate offers an interest rate that is at least 0.50-1% higher than that of fixed deposits currently being offered by big banks and most reputed institutions. ,

However, investors should determine the safety and dependability of the bank. It should be mentioned that under the RBI's Deposit Insurance Scheme, deposits in scheduled banks - which include small finance banks - are guaranteed up to ₹5 lakh. Meanwhile, the national government is supporting the Mahila Samman Savings Certificate programme, he said.