Mahila Samman Savings Certificate: Post Office Saving Scheme For Women

A woman or guardian can open multiple MSSC accounts in the name of a minor girl, with each account having a maximum limit of Rs 2 lakh.
Mahila Samman Savings Certificate, Saving Schemes, 
Mahila Samman Savings Certificate, Saving Schemes, Women

In the last year, the Modi government announced the Mahila Samma Savings Certificate (MSSC) 2023 on March 31, 2023. For investing up to Rs 2 lakh over a two-year term, this scheme offers women and girls a guaranteed interest rate of 7.5 per cent. If you are keen on investing in this scheme, you must delve deep into it. The MSCC is managed by both the post office and banks, and it offers one of the most competitive interest rates among government schemes for two years. 

Investment Cap

Nirmala Sitharaman, Union Finance Minister, during the presentation of the general Budget 2023, launched this scheme tailored for women, calling it a one-time deposit initiative for the nation’s women. Starting April 1, 2023, this scheme caters to investments ranging from a minimum of Rs 1000 to a maximum of Rs 2 lakh. An investor would receive the total amount, upon maturity after two years, comprising both the initial deposit and accrued interest. Note that investments in this scheme are accepted only until March 31, 2025. 

What's The Yield Of The MSSC Investment?

The Mahila Samman Savings Certificate Scheme presents an annual interest rate of 7.5 percent. For instance, placing Rs 1 lakh in this scheme could yield an estimated Rs 1.16 lakh upon maturity, given the 7.5 percent interest rate. Likewise, investing Rs 2 lakh would potentially result in approximately Rs 2.32 lakh after two years at the same 7.5 percent interest rate. This suggests a maximum potential interest earning of Rs 32,044.

How To Initiate An MSSC Account And Necessary Documentation?

To commence an investment in the MSSC, women have the option to open an account either at the post office or authorized banks. Remarkably, this scheme is accessible through 1.59 lakh post offices nationwide. Notably, women of any age can participate in it, and for minors, parents can open an account in their name. Upon opening an account, applicants will be required to complete Form-1. Additionally, submission of KYC documents such as an Aadhar card, PAN card, and a photograph will be mandatory.

How To Make Withdrawals Upon Maturity?

To withdraw the amount upon maturity, you need to submit Form 2. If you wish to make withdrawals before the maturity period, you are eligible to do so after one year. In such cases, you can withdraw up to Rs 40,000 by completing Form-3.

Tax Implications Of MSSC

According to a notification released by the Finance Ministry on April 5, 2023, investments made within this scheme do not qualify for exemption under Section 80C of the Income Tax Act. Taxation applies to the interest accrued from these investments.

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