Kolkata: Come March 31, 2025 and it will be curtains on Mahila Samman Savings Certificate, which was launched by the central government to promote financial inclusion and women empowerment. The instrument offers a fixed period of two years, which is coming to an end on March 31. Therefore, just a few days are left for you to invest in it if you are looking for ways to grow savings over a relatively short period of time. On July 31, 2023, the government revealed that between April 1, 2023 and that time, a total of Rs 8,630 crore flowed into the MSSC through 14,83,980 accounts, indicating the popularity of the scheme.
A big USP for the instrument is that this debt instrument is backed by the central government. It is available in post offices of the country and scheduled banks. It can be bought by any woman in India, who is an Indian citizen. It came into existence on April 1, 2023. The rate of interest is 7.5% per annum and is compounded quarterly. It must be said that this rate of interest compares favourably with that offered by top banks on FDs of similar maturity period.
Minimum and maximum investible amount
It must be remembered that apart from adult females, the guardians can also open this account on behalf of minor girls. The only condition is that the name on the certificate has to be that of an Indian citizen. There are also stipulations on the minimum and maximum amount that can be invested. The minimum amount which one can invest is Rs 1,000 and the maximum investment is Rs 2 lakh for an individual.
Premature withdrawal permitted
Mahila Samman Savings Certificates permit premature withdrawal. One can withdraw a maximum of 40% of the amount deposited after one year of buying the certificate. According to rules, the entire principal amount and interest will be paid back at the end of the two year term from the date of investment.
Does MSSCI offer tax benefit
Mahila Samman Savings Certificates offers complete safety of capital but no income tax benefits. The scheme does not enjoy any tax benefits under Section 80C, or any other provision for that matter, of the Income Tax Act. However, it is advisable that one should consult a qualified personal finance adviser before putting in her hard-earned money in any instrument.
A government-backed savings scheme, Mahila Samman Savings Certificate was designed to provide a safe investment option to women and was a part of the Centre’s endeavor to ensure to push financial inclusion and women empowerment. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
