Recently, the government of India in its union budget in February 2023 has introduced various process to encourage people to save money and invest to improve the country’s economy. However, there was one such scheme that was exclusively for women.
The Mahila Samman Savings Certificate (MSSC) is a fixed income scheme offered by the Indian Post Office. It’s a government-backed scheme exceptionally for women to provide them financial security and encourage them to save for the future. In this article, let’s discuss the main aspects and how it will help to empower women to consolidate the economy.
Eligibility
The MSSC Scheme is exclusively for women and can be availed by any Indian citizen aged above 18 years. It’s also available to minors above 10 years of age, but the account will be operated by the guardian.
Investment Limit
The minimum investment amount for MSSC scheme is 1000 rupees, which can be valued upper till 2 lakhs for one account. The investment should be in multiples of 1000 rupees.
Interest Rate
The interest rate for Mahila Samman Savings Certificate is revised every quarter by the government of India. As of April 2023 is 7.5% which is compounded annually till maturity.
Tenure
The MSSC scheme has a maturity period of 2 years. So, the amount can be encashed only after completion of the said tenure. Though, the certificate can be prematurely withdrawn, but a penalty will be levied upon then. The partial withdrawal can take place but will lead to a diminished amount of interest by 2%.
Tax Benefits
The amount of deposit, plus the amount of interest will be subject to taxes given under the Income Tax Act, 1961. Any other tax benefits such as the 80C is yet to be clarified by the authority.
How to apply?
To apply for this scheme you can visit your nearest post office or you can log in to the official website by downloading the ‘Application for purchasing the certificate’ and then fill out all details regarding postal address, account type, payment type, nomination, etc. Further, documents proof like Aadhar, Voter or PAN card is required for new account holders.
| Scheme | Interest Rate | Maturity period | Minimum Investment | Maximum Investment | Tax benefits |
| MSSC | 7.5% | 2 years | Rs. 1000 | upto 2 lakhs | Yet to be noticed |
| PPF | 7.1% | 15 years | Rs. 500 | upto 1.5 lakhs | Yes, under section 80C |
| NSC | 6.8% | 5/10 years | Rs. 1000 | No maximum limit | Yes, under section 80C |
| FDs | 4-6.5% | upto 10 years | varies from bank to bank | No maximum limit | No |
| MIS | 6.6% | 5 years | Rs. 1500 | Rs. 4.5 lakhs for single account and Rs. 9 lakhs for a joint account | No |
Conclusion
The Mahila Samman Savings Certificate is an excellent savings scheme for women who are looking for a secure and guaranteed investment option. The scheme offers higher interest rate compared to other fixed-income options and also has tax benefits. Women who want to be financially successful can apply this scheme through their Post office in India.
