Budget 2023: What Is Mahila Samman Saving Scheme? Know Deposit Limit, Interest Rate & All Details

Mahila Samman Saving Certificate' (MSSC) is a one-time scheme announced for women in Budget 2023 that will remain available for a two-year period for up to March 2025.

The scheme doesn’t offer any liquidity as the entire corpus gets locked in till the girl attains the age of 18. Also, only up to 50 percent of the investment amount can be withdrawn for educational needs.

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Finance Minister Nirmala Sitharaman in her fifth Budget announcement gave a big push to small savings schemes. The FM announced a one-time small saving scheme for women called 'Mahila Samman Saving Certificate' (MSSC).   This is a one-time scheme announced in Budget 2023 and will remain available for a two-year period ie up to March 2025.

What’s the scheme?

Under this scheme, deposits can be made in the name of a woman or a girl child. A deposit of up to Rs 2 lakh at a fixed rate of 7.5 percent. It is to be noted that there are no tax benefits, but one can make a partial withdrawal.

Experts believe that the Mahila Samman Savings Certificate with a higher rate of interest will push more women to opt for more formal financial saving instruments. The scheme will have a tenure of two years.

MSSC Vs Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana (SSY) account can be opened for a girl up to the age of 10 years. The account matures after 21 years from the date of opening the account. However, this limit of 21 years is not applicable if the girl gets married before the expiry of the tenure. Deposits can only be made till the 15th year. The scheme doesn’t offer any liquidity as the entire corpus gets locked in till the girl attains the age of 18. Also, only up to 50 percent of the investment amount can be withdrawn for educational needs.

The existing Sukanya Samriddhi Yojana caters to saving for the girl child’s long-term future. MSSC is a short-term product and hence it isn't easy to compare it with long-term instruments such as SSY, say financial planners.

MSSC vs deposits

The MSSC is a suitable alternative to fixed deposits (FDs) invested in the name of a woman for a shorter duration. However, The partial withdrawal facility offers liquidity under MSSC. “With the bank savings rate still giving low returns, a 7.5 per cent rate of return is a good rate to lock in at this point. An investment of Rs2 lakh for two years at 7.5 per cent interest will give you a return of Rs 30,000-32,000, depending on how the interest gets calculated," publication Mint quoted Bankbazaar.com CEO Adhil Shetty as saying.