The current financial year wraps up on March 31, 2025. After this date, there will be several changes affecting the savings of everyday people. Additionally, the deadline to enroll in the Mahila Samman Savings Certificate (MSSC) is also on March 31. It’s worth noting that the government provides interest on investments made in this scheme. Let’s dive into the details of the program.
What’s the purpose of the scheme?
This initiative is designed to offer women and girls safe and appealing investment opportunities. It has a fixed duration of two years, making it a reliable way to boost savings in a short timeframe. Only women and girls can invest in this scheme, but guardians are allowed to invest on behalf of minor girls.
Starting with just 1,000 rupees
To open an account under the Mahila Samman Savings Certificate Scheme, the minimum investment is Rs 1,000, while the maximum is capped at Rs 2 lakh per individual. Investors can make partial withdrawals of up to 40% of their deposit after one year. However, the full principal amount plus any interest earned is only accessible at the end of the two-year term. Keep in mind that this scheme does not qualify for tax deductions under Section 80C of the Income Tax Act, so potential investors should weigh this when looking at other tax-saving options.
How does the interest rate stack up against banks?
The Mahila Samman Savings Certificate Scheme offers an interest rate of 7.5% per annum, compounded quarterly and credited to the account. In comparison, SBI provides a 6.80% interest rate on two-year fixed deposits for the general public. HDFC Bank offers a 7.25% interest rate on fixed deposits for the same demographic.
Canara Bank has a fixed deposit interest rate of 7.25% for a tenure of 444 days (which is about 1 year, 2 months, and 19 days), while Axis Bank also offers a 7.25% interest rate for fixed deposits with a duration between 15 months and 2 years.