Unique scheme for women: Mahila Samman Savings Certificate (MSSCS): The Modi-led central government has introduced several schemes to empower and financially support women.
One of the well-received schemes is the ‘Sukanya Samriddhi Yojana.’ However, women who have turned 18 are not eligible to invest in this scheme.
In response, the central government announced a new scheme to support such women in last year’s (2023) budget.
To empower women investors in the country, the government has introduced the ‘Mahila Samman Savings Certificate (MSSCS),’ also known as the ‘Short-Term Fixed Deposit Scheme.’
This scheme is designed to inspire and motivate women to take control of their financial future. Let’s explore the features of the MSSCS, how to apply for it, and the interest rates earned.
Key points about the scheme:
- You can invest between Rs. 1,000 to Rs. 2 lakh in this scheme.
- It’s a one-time investment plan, so the entire amount should be deposited immediately.
- The money cannot be withdrawn for two years after saving, and any woman with Indian citizenship can join the scheme.
- Additionally, a minor girl can open an account under the guardianship of an adult.
How to open Mahila Samman account?
- Visit your nearest bank or post office to obtain the Mahila Samman Bachat Patra Yojana form.
- Complete the form by providing personal, financial, and nomination details, and submit the necessary identity and address proof documents.
- Deposit the selected amount either in cash or by cheque. Upon completion, you will receive a certificate as proof of investment.
Interest rates:
The current MSSCS interest rate is 7.5%. For example, if you invest the maximum limit of Rs. 2 lakh for two years, you will earn an interest of Rs. 15,000 in the first year and Rs. 16,125 in the second year, totaling Rs. 31,125 by the end of the term.
Advantages of MSSCS: MSSCS is a government-backed savings channel that offers security for both principal and interest. The risk of loss is minimal, providing investors with a sense of reassurance and confidence.
MSSCS vs. FD
The interest rate on MSSCS is slightly higher than that of Fixed Deposits (FDs). However, some small banks are offering 8% interest on FDs.
MSSCS has a savings limit of Rs. 2 lakh, while FDs do not have such restrictions but come with a risk factor.
MSSCS is an ideal scheme for women looking to save less than Rs. 2 lakh. If you have more to save, it’s better to invest Rs. 2 lakh in MSSCS and place the remaining amount in an FD.
Remember, MSSCS may be available in March 2025, so applying before the deadline is crucial if you wish to save through this scheme. This deadline should prompt you to take action and not miss out on this opportunity.