Mahila Samman Saving Scheme

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Mahila Samman Saving Scheme (MSSC) is a one-time small savings scheme launched by the Government of India for women.It offers a fixed interest rate of 7.5% per annum for a period of two years.

The scheme is available for women of all ages and they can open an account in their own name or in the name of a girl child. The maximum deposit amount in an MSSC account is Rs. 2 lakh.

Mahila Samman Saving Scheme (MSSS) is a revolutionary initiative that aims to empower women and promote financial inclusion in India.

This scheme, launched by the Government of India to close the gender gap within financial services, provides women with an easy and safe way to invest and save their money.

This scheme aims not only to promote financial independence, but also to empower women economically and socially.

From 01/04/2023, the Mahila Samman Saving Certificate 2023 is available in Post Offices with an interest rate 7.5% per year.

Smt. Nirmala SITHARMAN announced Mahila Samman, a small savings program for women and girls in her Budget Speech of 2023-24. Mahila Samman Savings Certificate was announced in commemoration of Azadi Ka Amrit Mahhotsav.

This is a two-year, one-time program that offers a maximum of Rs.2 lakh as a deposit in the name or women and girls.The interest rate will be fixed.

Scheme Name	Mahila Samman Saving Scheme
Type	Government Scheme
Purpose	To provide a safe and secure investment option for women
Interest rate	7.5% per annum
Maturity period	2 years
Maximum deposit	Rs. 2 lakh
Starting date	01/04/2023
Ending	2025
Eligibility	Any woman or girl can open an account
Withdrawal	Partial withdrawal allowed after one year from the date of account opening
Premature closure	Account can be closed after six months from the date of account opening, but a penalty of 2% will be applicable
Tax benefits	Interest earned under the scheme is taxable under the head “Income from other sources”
Availability	Available at all post offices and select banks

Mahila Samman Savings Scheme Key Features

1. Target Audience: This scheme is primarily aimed at women who belong to the economically weaker sections, rural areas and marginalized communities.The scheme is designed to help women who are in need by focusing on underserved communities.

2. Savings Accounts: Women who are eligible can open a saving account at a bank that participates in the Mahila Samman Saving Scheme. This account has several benefits including interest on deposits as well as convenience in banking services.

3. Women with limited resources can start saving by making a small deposit.Women can develop the habit of saving by focusing on regular and small savings.

4. Savings Accounts Offer Competitive Interest Rates.This encourages women to save and earn more on their deposits.This encourages account holders to be more prudent with their money.

5. Insurance Coverage : The Mahila Samman saving scheme provides coverage for life insurance to the account holders.The family of the deceased account holder receives financial support in the event of their death.

6. Flexible Withdrawals : The plan allows partial withdrawals in the event of unforeseen financial emergencies.This flexibility allows women to access their savings when they need them, while still maintaining a safety-net for their long term goals.

Other important features of Mahila Samman Savings Scheme

1. Women’s Empowerment Financially: The scheme’s role in promoting financial empowerment for women is one of its most important advantages.The scheme encourages women to save regularly and gives them a feeling of control over their finances.

2. Mahila Samman has played an important role in increasing financial inclusion of women in India.The scheme has allowed women with disadvantaged backgrounds to access formal banking services, and actively participate in India’s financial system.

3. Creating a culture of saving: The emphasis placed by the scheme on regular, disciplined savings encourages women to develop a habit of planning their finances and saving for future. The newfound financial knowledge has positive effects on communities and families.

4. Social Security: Life insurance provided under the scheme is a measure of social security for women and their family. This scheme provides financial security and peace of mind to those who may not have access traditional insurance products.

5. Support for Aspiring Entrepreneurs : The flexibility of the scheme in withdrawing money allows women entrepreneurs to get capital to fund their ventures. This funding helps to promote women’s entrepreneurialism and economic growth.

Impact of Mahila Samman Savings Scheme

The Mahila Samman Saving Scheme, which was launched in 1996, has had a major impact on the lives of women across India.Some notable results include:

1. Increased Savings : The scheme has encouraged women to save regularly and this has led to an overall increase in savings among its beneficiaries.

2. Financial Security: Life insurance has provided a safety net for women and their families in difficult times, providing financial security.

3. Empowerment: The scheme empowers women by promoting their financial independence and decision making.

4. Rural Development: By focusing on women living in rural areas, the scheme has helped to promote rural development through economic activity and financial inclusion.

Mahila Samman Saving Certificate interest rate

The interest rate of Mahila Samman Savings Certificate (MSSC) is 7.5% per annum. Interest is compounded and paid quarterly.This means that you will earn interest on your interest, which will help your investment grow faster.

The interest rate of MSSC is fixed for the entire tenure of the scheme, which is two years. This means that you can be sure of the return on your investment, even if interest rates in the market change.

The interest rate of MSSC is also inflation-protected. This means that the interest you earn will be enough to keep your investment up with the rising cost of living.

Overall, the interest rate of MSSC is a good deal for women looking for a safe and secure investment option with a guaranteed return.

Here is an example of how the interest rate of MSSC works:

If you invest Rs. 1 lakh in MSSC, you will earn an interest of Rs. 3,750 per quarter. After two years, you will have earned a total interest of Rs. 15,000.

The interest earned on MSSC is taxable. However, the interest earned up to Rs. 30,000 per annum is exempt from tax. This means that if you invest Rs. 2 lakh in MSSC, you will only have to pay tax on the interest earned on the last Rs. 1 lakh.

The MSSC scheme is a good option for women who are looking for a safe and secure investment option with a guaranteed return. The interest rate of MSSC is also inflation-protected, which means that your investment will keep up with the rising cost of living.

How to apply for Mahila Samman Saving Certificate

• Visit your local post office or bank to learn about small savings schemes.

• You can ask for a Mahila Samman savings certificate application form.

Now fill out the form and submit it along with the following documents.

PAN card

Aadhaar card

Address Proof

Proof of Identity (such as a voter ID card, driving licence, etc.

Proof of age is required (birth certificate, certificate of schooling, etc.).

• Deposit a minimum of Rs. 1,000.

• You will receive a Mahila Samman Certificate from the post office or your bank.

Mahila Samman Saving Scheme Calculator

Here are some Formula’s that will help you to calculate Mahila Samman Saving scheme interest :

Input:

• Investment amount: ₹
• Interest rate: 7.5% p.a.
• Tenure: 2 years

Output:

• Maturity amount: ₹
• Interest earned: ₹

Calculation:

The maturity amount is calculated as follows:

Maturity amount = Investment amount * (1 + Interest rate)^Tenure

The interest earned is calculated as follows:

Interest earned = Maturity amount – Investment amount

For example, if you invest ₹200,000 in the Mahila Samman Saving scheme, your maturity amount will be ₹231,125 after two years.The interest earned will be ₹31,125.

Comparing PPF and Mahila Samman Savings Certificate

Features	PPF	Mahila Samman Saving Scheme
Eligibility	Any Indian citizen	Women and girl children
Interest rate	7.1% p.a.	7.5% p.a.
Tenure	15 years	2 years
Deposit limit	Minimum – Rs.500. Maximum – Rs 1.5 lakh	Minimum – Rs.1,000. Maximum – Rs.2 lakh
Premature withdrawal	Permits partial withdrawal after 7 years	Permits 40% withdrawal after one year
Tax benefit	Exempt-Exempt-Exempt (EEE) category under Section 80C category	No tax deduction under Section 80C

Key differences:

• PPF has a longer tenure of 15 years, while Mahila Samman Savings Certificate has a tenure of 2 years.

• PPF allows for partial withdrawals after 7 years, while Mahila Samman Savings Certificate allows for a 40% withdrawal after one year.

• PPF is eligible for tax deduction under Section 80C, while Mahila Samman Savings Certificate is not.

Which is better?

If you are looking for a long-term investment with tax benefits, then PPF is a good option. If you are looking for a short-term investment with a higher interest rate, then Mahila Samman Savings Certificate is a good option.

Ultimately, you should do your own research and compare the two schemes before making a decision

Comparing NSC and Mahila Samman Savings Certificate

Features	NSC	Mahila Samman Saving scheme
Eligibility	Any individual, including NRIs	Women and girl children
Interest rate	7.7% p.a.	7.5% p.a.
Tenure	5 years	2 years
Deposit limit	Minimum – Rs.100. Maximum – No limit	Minimum – Rs.1,000. Maximum – Rs.2 lakh
Premature withdrawal	Allowed in certain circumstances	Permits 40% withdrawal after one year
Tax benefit	Deductions of up to Rs.1.5 lakh under Section 80C	No tax deduction under Section 80C

Key differences:

• NSC has a longer tenure of 5 years, while Mahila Samman Savings Certificate has a tenure of 2 years.

• NSC allows for premature withdrawals in certain circumstances, while Mahila Samman Savings Certificate allows for a 40% withdrawal after one year.

• NSC is eligible for tax deduction under Section 80C, while Mahila Samman Savings Certificate is not.

Which is better?

If you are looking for a long-term investment with tax benefits, then NSC is a good option. If you are looking for a short-term investment with a higher interest rate, then Mahila Samman Savings Certificate is a good option.

Ultimately, you should do your own research and compare the two schemes before making a decision.

Additional information:

• NSC is a government-backed scheme, so your investment is guaranteed.

• Mahila Samman Savings Certificate is also a government-backed scheme, but it is a newer scheme, so there is less historical data to go on.

• The interest rate on NSC is fixed, while the interest rate on Mahila Samman Savings Certificate is compounded quarterly.

5 Banks that provide Mahila Samman Savings Certificate

• Post Office
• Bank of Baroda
• Canara Bank
• Bank of India
• Punjab National Bank

Conclusion

Mahila Samman Saving Scheme is a powerful tool to empower women and promote financial inclusion in India.The scheme, which provides women with formal banking services and insurance coverage and encourages a culture for saving, has helped women in India to have a more prosperous and brighter future.The scheme is expected to continue to grow and evolve, bringing positive changes to the economy and uplifting countless lives.

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