TomorrowMakers

The Union Budget 2023 introduced a new small-saving scheme targeted at the women population of India. Called the Mahila Samman Savings Certificate, the scheme offers a high rate of interest and comes with a short-term investment duration. Let’s understand what the scheme is all about.

Mahila Samman Savings Certificate – Scheme Details

The Mahila Samman Savings Certificate is a fixed-income, small-saving scheme launched by the Finance Minister, Mrs Nirmala Sitharaman, in the latest Union Budget 2023. Here are the scheme details –

• The scheme is open for resident Indian women and girls.
• The scheme would be open for investment from 1st April 2023. It would be available till 31st March 2025.
• The maturity tenure is 2 years.
• The maximum investment amount is Rs.2 lakhs, while the minimum investment amount is not yet specified.
• The interest rate is fixed at 7.5% per annum.

You can make premature withdrawals from the scheme though the rules have not yet been specified.

Applying for the Mahila Samman Savings Certificate scheme

Currently, state-owned banks are allowed to offer saving schemes to females. To apply, you can visit the bank and get the application form. Fill in the form, pay the deposit amount, attach the relevant documents and submit the form.

The bank will verify and accept the deposit and issue the deposit certificate for your records.

Mahila Samman Savings Certificate v/s other small-saving schemes

Here’s how the Mahila Samman Savings Certificate (MMSC) fares against other small-saving schemes –

Related - Here's a comparative analysis between SSY, PPF and SCSS schemes

The Mahila Samman Savings Certificate fares better than the other available small-saving schemes. Have a look at how –

• It is a short-term investment which is suitable for your short-term goals.
• It motivates women to invest in their names and create a corpus for their needs.
• The interest rate is higher than similar schemes like 2-year fixed deposits, PPF, etc.
• The facility of premature withdrawal also allows easy liquidity.

Moreover, since the Indian government backs the scheme, it carries no risk and gives you attractive returns on investment.

So, if you are a female or if you want to invest in the name of your wife or daughter, the Mahila Samman Savings Certificate can be a good scheme to choose.

Related - Read this to know about the key highlights of the Union Budget 2023

Watch the video to see the Budget speech where the MMSC scheme was introduced