With an aim to empower women, Finance Minister Nirmala Sitharaman in Budget 2023 launched a one-time small savings scheme for women investors known as the Mahila Samman Savings Certificate (MSSC).
Mahila Samman Saving Certificate: Know Eligibility, Tenure & Amount
One can deposit money in the name of a woman or a girl child. The maximum deposit amount under the scheme is Rs 2 lakh. Mahila Samman Savings Certificate is available for a two-year period up to March 2025. This scheme will offer a deposit facility for a tenor of 2 years at a fixed interest rate of 7.5 per cent. There is a partial withdrawal option in the Mahila Samman Saving Certificate scheme. Also, note that small savings schemes qualify for significant tax benefits under Section 80C of the Income Tax Act. However, the taxation structure of the scheme is not known yet.
Mahila Samman Savings Certificate (MSSC) vs Bank FDs
Top lenders in the country, including State Bank of India (SBI), Axis Bank, HDFC, ICICI, and Kotak Bank, provide interest rate on bank FDs from the range of 3 per cent- 6.35 per cent depending on the term. The tenor of the Mahila Samman Savings Certificate is two years. SBI offers 6.75 per cent for a 2-year deposit, Axis Bank FDs give 7.26 per cent, HDFC bank FDs offer 7 per cent, ICICI Bank FDs is 7 per cent, and Kotak Bank FDs is 6.75 per cent. On contrary, the MSSC offers 0.50-1 per cent higher interest than the top bank FDs, the publication Livemint quoted Archit Gupta, founder and CEO, Cleartax as saying.
IDFC First Bank and IndusInd Bank match the interest rates of MSSC at 7.5 per cent for 2 years FD. Compared to bank FDs, MSSC offers a high-interest rate fixed at 7.5 per cent for a tenor of 2 years that has government support, thereby having no credit risk, Gupta added.
Amit Gupta, MD, SAG Infotech told the publication that investors must determine the bank's security and dependability. Also, note that under the RBI's deposit insurance plan, deposits in scheduled banks, which includes small financing banks, are guaranteed up to Rs 5 lakh. The MSSC scheme is backed by the government, he added.