Mahila Samman Saving Certificate (MSSC 2023) is a new small saving scheme for women investors. This scheme was introduced in Budget 2023. The main objective of this scheme is to encourage investment in the name of women or girl children and provide financial inclusion to women including girls. The interest rate offered for Mahila Samman Saving Scheme is 7.5%. The offered interest rate on MSSC is higher compared to normal bank FD. MSSC offers flexible investment options and a partial withdrawal facility.
Here are important details of the Mahila Samman Savings Certificate, 2023 including interest payment, charges, how to open, premature closure, and a calculator to calculate returns on the Mahila Samman Saving Certificate.
Mahila Samman Savings Certificate – Key Features
Eligibility
Women and Girls will be able to invest in Mahila Samman Saving Scheme. This account can be opened by the woman herself, or by the guardian of a minor girl. This account can be opened at Post offices. Form – I needs to be filled up for Women investors to open this account. This scheme is a one-time scheme and accounts can be opened from 1st April 2023 to 31st March 2025.
To open this account you need to submit Account Opening Form, KYC Document (Aadhaar and PAN card), KYC form for the new account holders, and Pay-in-Slip along with the deposit amount/cheque at the nearest post office.
Investment Limit
The minimum investment amount is Rs. 1000 and the maximum investment limit under this scheme is 2 Lakh. Any number of accounts can be opened with a time gap of at least 3 months from the existing account.
Interest Rate and Compounding Frequency
The interest rate under Mahila Samman Savings Certificate, 2023 is fixed at 7.5% per annum compounded quarterly. The annualized yield comes to 7.71%. It is a fixed interest-rated scheme. The interest will be reinvested and will be paid at the time of maturity. No monthly or quarterly or other periodic interest payment is allowed.
Payment on Maturity
The maturity of this saving certificate is after completion of 2 years from the date of opening. The account holder needs to submit Form 2 at the account office at the time of maturity.
Withdrawal & Pre Mature Closure
The account holder can withdraw up to 40% of the amount after 1 year from the date of opening an account and before maturity. Premature closure can be allowed only under extremely compassionate grounds or due to the death of the account holder. In the event of life-threatening diseases of the account holder or on the death of the guardian on the production of relevant documents. This account can also be closed after 6 months at any time with a 2% reduced interest rate i.e @ 5.5%.
Mahila Samman Savings Certificate Calculator Download
The Mahila Samman Savings Certificate Calculator is given here. You can enter the principal amount online and get the final maturity amount. You can also make changes to the Total year of investment and interest rates.
Example –
- For Rs.1000 invested under this scheme maturity amount, @7.5% is Rs.1154.
- For Rs.10000 invested under this scheme maturity amount, @7.5% is Rs.11556.
- For Rs.50000 invested under this scheme maturity amount, @7.5% is Rs.57781.
- For Rs.100000 invested under this scheme maturity amount, @7.5% is Rs.115563.
- For Rs.200000 invested under this scheme maturity amount, @7.5% is Rs.231125.
You can also download the Mahila Samman calculator by clicking the download button below.
Mahila Samman Savings Certificate – Review
Financial independence and financial inclusion for women is still a major problem in India. The Mahila Samman Saving Certificate scheme offers a platform for women to invest money for a better financial future. It is a very good step taken by the government of India. Before this, the government has already started the Sukanya Samriddhi Saving scheme for the girl child and many people have taken benefit of the same.
The benefits and drawbacks of MSSC are as under:
Benefits –
- The scheme does not have any credit risk as it is backed by the government.
- The interest rate is 7.5% it is higher compared to normal fixed deposit this makes MSSC attractive scheme for investment.
- Partial withdrawal of up to 40% of the eligible balance is allowed after the completion of one year.
- Premature closure is allowed.
Drawbacks –
- The deposit facility is available for 2 years only.
- The maximum investment amount is 2 Lakh which is less.
- No tax benefit on investing in Mahila Samman Savings Certificate is announced. As per general rules, the interest income on this scheme shall become taxable.
Conclusion
Mahila Samman Savings Certificate, 2023 is a very good scheme for investment for women. Looking at the offered rate of interest and no credit risk every woman should invest in this scheme.
