Mahila Samman Saving Certificate is a savings scheme launched by the Government of India in 1993 with an aim to encourage women to save for their future and empower them financially. In this Government scheme, women can invest their money for a fixed term and earn a fixed interest rate on their investment. The (MSSC) is a one-time small savings scheme for women investors that Finance Minister Nirmala Sitharaman announced in Budget 2023. Here is a detailed explanation of the scheme, its benefits, and its conclusion.
Eligibility criteria :
To be eligible for the Mahila Samman Saving Certificate, a woman must be an Indian citizen, aged 18 years or above, and have a valid identity proof like Aadhar Card, Voter ID, or Passport.
Key Features of the Mahila Samman Savings Certificate
- Eligibility Any women
- Minimum investment Rs 1,000
- Maximum investment Rs 2 lakh (combined in all accounts)
- Maturity period 2 years
Features of the scheme :
The scheme offers a fixed interest rate of 7.8% per annum, which is compounded annually. The minimum investment amount is Rs. 1000, and there is no maximum limit on the investment amount. The investment can be made for a period of five years, and premature withdrawal is allowed after one year with a penalty. The interest earned is taxable, and TDS (Tax Deducted at Source) is deducted at the time of maturity.
Benefits of the scheme:
a) High-interest rate :
The scheme offers a higher interest rate compared to other savings schemes like fixed deposits, recurring deposits, and savings accounts. MSSC is a one-time scheme that offers a fixed interest of 7.5 per cent which is higher than other schemes.
b) Safety of investment :
The scheme is backed by the Government of India, which makes it a safe investment option for women.
c) Tax benefits :
The scheme offers tax benefits under Section 80C of the Income Tax Act, 1961. Which allows women to claim a deduction of up to Rs. 1.5 lakhs in a financial year.
d) Empowerment of women :
The scheme aims to empower women by encouraging them to save for their future and also become financially independent.
How to Open a MSSC account ?
Follow these steps To open a Mahila Samman Savings scheme,:
- Obtain application form either by downloading it from the official Indian Post website or visiting the nearest Post Office branch.
- Complete the ‘To The Postmaster’ section of the form by filling out the Post Office address.
And also provide all the necessary information, and indicate the account as ‘Mahila Samman Savings Certificate’
- Complete the declaration and nomination details section.
- Submit the completed form along with any required documentation.
- Deposit the necessary funds in the Post Office by either cash or cheque.
- Obtain the certificate as proof of your investment in the Mahila Samman Savings Certificate scheme
The MSSC is a great investment option for women who want to earn a fixed interest rate and also secure their future financially. The scheme offers several benefits like high-interest rate, safety of investment, tax benefits, and empowerment of women. However, before investing in the scheme, women should consider their financial goals and risk appetite. They should also compare the scheme with other investment options available in the market and make an informed decision. Overall, the MSSC is a good investment option for women who want to earn a fixed income and secure their future.