In Budget 2023-24, the finance minister announced a women-centric, two year small saving scheme. It is called Mahila Samman Saving Certificate (MSSC). This scheme strives to make women financially aware. It is also likely to bring women to the focus of Indian households.

Mahila Samman Saving Certificate

Mahila Samman Saving Certificate Announced in Budget 2023: A Complete Guide!

Finance Minister of India Nirmala Sitharaman announced a new scheme for women investors during her budget speech on February 1, 2023. The name of this one-time small savings scheme is Mahila Samman Saving Certificate (MSSC).

What is a Mahila Samman Saving Certificate (MSSC)? What does it Offer?

The Union Budget 2023-24 has declared Mahila Samman Saving Certificate to make women financially aware.

Basics of the Scheme

  • Who should Invest: MSSC enables any individual to invest in the name of a girl child or a woman.
  • Amount to Invest: Rs. 2 lakhs can be invested in the name of a girl child or a woman.
  • Tenure: The investment can be made for 2 years.
  • Interest Rate: This scheme will help you earn a 7.5% p.a. interest rate for two years.
  • Partial Withdrawal: You can avail partial withdrawal facility in this scheme.
  • Offer Availability: You can start investing in the MSSC scheme from April 1, 2023. This one-time scheme will be available for two years. This means it will be available till March 2025.
  • Tax Exemption: This scheme does not offer tax deductions. Also, the returns from investing in Mahila Samman Saving Certificate (MSSC) are not tax free.

What are the Aims of the Scheme?

  • With the vision for Amrit Kaal, Union Budget 2023-24 will help draw girls and women into the financial planning of Indian families. The conversation regarding this Mahila Samman Saving Certificate scheme within the family will likely bring women to a household's financial discussion.
  • With the offered interest rate of 7.5%, Mahila Samman Saving Certificate will incentivise savings.
  • This scheme will help low-income families create their financial reserves.
  • MSSC is likely to help women from all social and financial strata to become more financially aware.

Mahila Samman Saving Certificate (MSSC) Calculation: How much would you Earn?

The calculation of your earning from the MSSC scheme is given below:

  • You can earn Rs. 15,427 each year as interest income in the first and second years.
  • At the end of two years, you'll earn Rs. 32,044 as interest income (at 7.5% per annum).
  • Therefore, your investment of Rs. 2 lahks in the Mahila Samman Saving Certificate will become Rs. 2,32,044 at the end of two years.

MSSC Scheme vs Bank FDs vs Post Office Schemes: Comparison

  • Investing in Mahila Samman Saving Certificate will provide you with an interest rate that is better than the average rates provided by most banks.
  • The average interest rates given by a one-time small savings scheme of major public or private sector banks usually hover in the 5-7% range.

    The annual interest rate on a 2-year deposit in:
    • Axis Bank FD is 7.26%
    • ICICI Bank FD is 7%
    • Kotak Bank is 6.75%
    • SBI FD is 6.75%
  • MSSC is offering a 7.5% p.a. interest rate on a two-year investment.
  • The interest rate of 7.5% offered by the small savings scheme Mahila Samman Saving Certificate is better than most of the one-time small savings schemes of the post office. Let’s take a look:

    The interest rate of:
    • Kisan Vikas Patra (KVP) is 7.2%
    • NSC (National Savings Certificate) is 7%
    • PPF (Public Provident Fund) is 7.1%
    • However, certain post office small savings schemes offer better rates than MSSC, such as:
    • Sukanya Samriddhi Yojana (SSY): 7.6%

You should keep in mind that most of the small savings schemes of the post office have longer tenures. Tenure of PPF, NSC, and KVP are 15-years, 5-years, and 10-years respectively. SSY's tenure is at least 15 years.  

Mahila Samman Saving Certificate: How to Open an Account?

You can open an MSSC account at any post office or bank. The process of opening a Mahila Samman Saving Certificate account is given below:

  • Visit your nearest post office or bank
  • Ask for the form of Mahila Samman Bachat Patra Yojana
  • Fill up the following details:
    • Personal details
    • Financial details
    • Nominee details
    • Identity proof
    • Address proof

You can deposit the money either in cheque or cash.