Mahila Samman Savings Certificate:In the budget of the year 2023, the government had announced the Mahila Samman Savings Certificate i.e. MSSC scheme. Mahila Samman Savings Certificate is a small savings scheme launched by the government for women investors. The aim of the MSSC scheme is to inculcate the habit of saving among the women of India.
Was there any announcement to take the MSSC scheme forward in this budget?
The answer is no, no announcement was made by the government regarding Mahila Samman Saving Certificate in the budget of the year 2024. At present, the interest rate and investment time limit on this scheme will remain the same as before. Investment can be made in this scheme only till March 31, 2025.
What is Mahila Samman Savings Certificate?
It is a small savings scheme launched by the government for women in the 2023 budget. The purpose of Mahila Samman Saving Certificate is to promote the habit of saving among women investors. It is worth noting that Mahila Samman Saving Certificate is a one-time scheme available for 2 years i.e. from April 2023 to March 2025. Mahila Samman Saving Certificate Scheme is being operated through post office from April 1, 2023.
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How much return will you get on investment
This scheme with 2 years maturity is giving 7.5 percent annual interest.
If we look at it this way, then on investing Rs 1 lakh in this scheme, at the rate of 7.5 percent, a woman investor will get around Rs 1.16 lakh after maturity. On the other hand, if a woman invests Rs 2 lakh in this scheme, then at the rate of 7.5 percent, she will get around Rs 2.32 lakh after 2 years. That is, a maximum interest of Rs 32,044 can be earned.
The interest is compounded quarterly and will be deposited in the account opened in the name of the woman or girl child.
Applicable interest will be payable after 2 years or at the time of account closure or on premature withdrawal or at the time of partial withdrawal.
How can you open an account
If a woman wants to invest in the Samman Bachat Prasaraksh Yojana, she can open an account in a post office or a bank. A special feature of this scheme is that a woman of any age can invest in her name. If there is a minor girl in the family, then the parents or guardians can open an account in her name under the MSSC scheme. While opening the account, you will have to fill Form-1. Also, KYC documents like Aadhar card, PAN card and photograph will be necessary.
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Who can open MSSC account
Indian women of any age.
An account for Mahila Samman Saving Certificate Scheme can also be opened in the name of a minor girl by the legal guardian. That is, this account can be opened by a woman for herself or by the guardian in case of a minor girl.
In how many people’s name can MSSC account be opened
What type of account is this? Let’s know about it
Only a single account can be opened under this scheme.
An account opened in the name of a minor girl child can be operated by the guardian until she attains adulthood.
Opening a joint account is not permitted.
What is the maximum amount you can keep in the scheme
Under this scheme, a minimum of Rs 1000 and a maximum of Rs 2 lakh can be deposited.
The deposit amount will be in multiples of Rs 100 only.
There can be only one deposit amount in the account opened under this scheme.
There is no limit on the number of accounts for a single depositor, provided the total balance in all his accounts under the scheme does not exceed Rs 2,00,000.
There will be a time gap of three months from the date of opening the existing account to open a second account under this scheme.
How much interest is received on deposits
Mahila Samman Saving Certificate is a one-time deposit scheme for the women of the country. There is a facility to invest a minimum of Rs 1000 and a maximum of Rs 2 lakh in this scheme. In this, the entire amount is received after 2 years by combining the deposit amount and interest.
In how much time does the scheme mature
The amount deposited under this scheme will mature after completion of 2 years from the date of opening the account.
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Partial Withdrawal
A maximum of 40 per cent of the eligible balance can be withdrawn after completion of one year from the date of opening the account. The facility of partial withdrawal before maturity will be available only once.
At the time of maturity, you can withdraw the amount by depositing Form-2.
If you want to withdraw money from the account before the maturity period, then you get this facility after 6 months.
In such a situation, up to 40 percent of the amount can be withdrawn by submitting Form-3.
When can the account be closed before maturity?
In these cases, closing the account before maturity is allowed.
On the death of the account holder.
Medical assistance in case of life-threatening illnesses of the account holder.
In case of difficulty in operating the account as a result of death of the guardian.
If the account is closed due to the above reasons, the deposit amount will continue to earn interest at the interest rate fixed for the scheme. Apart from this, closure of the account for other reasons can be permitted at any time after the expiry of 6 months from the date of opening the account.
2 per cent interest is deducted on withdrawal before maturity, which means the woman investor gets interest benefit on deposits at the rate of 5.2 per cent.
Will there be any tax benefit?
According to a notification issued by the Finance Ministry on April 5, 2023, investments made under this scheme are not eligible for exemption under Section 80C of the Income Tax Act. Tax will have to be paid on the interest earned on this.
Apart from post, you can open MSSC account in these banks?
In an e-gazette issued on June 27, 2023, the Department of Economic Affairs, under the Ministry of Finance, Government of India, allowed all government and qualified private banks to implement and operate the Mahila Samman Saving Certificate 2023. After that, apart from post offices, the facility of opening accounts in the name of women and girls under the Mahila Samman Saving Certificate Scheme became available in some banks. These include Bank of Baroda, Canara Bank, Bank of India, PNB and Union Bank of India.
Women investors who are looking for a better and completely safe option for investment can invest in the government-backed Mahila Samman Saving Certificate (MSSC) scheme. This scheme is being run by post offices and some selected government and private banks.
