Mahila Samman Savings Certificates (MSSCs) is a government-backed savings scheme with an attractive fixed interest rate for two years.

MSSC accounts can be opened by any woman or guardian of a girl child with an annual deposit limit of Rs 2 lakh and interest that accrues quarterly and is paid out upon maturity.

What is the interest rate of MSSC?

The government recently announced that MSSC accounts will offer an interest rate of 7.5% on investments up to Rs 2 lakh, exceeding bank fixed deposits by an impressive margin.

Women looking for an easy and safe investment solution have many options when it comes to MSSC accounts, with post offices and authorized banks offering these accounts as viable locations to open one – either independently or with assistance from their guardian if a minor girl.

MSSC is a government-backed savings scheme, so your investments are safe from market fluctuations and without incurring penalties if withdrawn early.

MSSC also offers another advantage – inflation protection! Your returns will keep pace with rising costs.

If you are curious to discover more about small savings schemes, visit your local post office or bank to explore available options. Alternatively, the government offers more details online about these savings plans; PPF, Kisan Vikas Patra, and Sukanya Samriddhi Yojana could all provide diversification of portfolio risk by adding low-risk investments into a portfolio.

How to open an account in MSSC?

MSSC is a government-backed savings scheme with one of the highest returns over two-years investment periods, available through any post office and offering one of the highest returns possible for investment periods of two years or less. Union Finance Minister Nirmala Sitharaman initiated this savings option specifically targeted toward women during General Budget 2023; eligible investors include any girl or woman of any age.

To open an account in MSSC, you must provide valid identity proof and address proof documents such as your Permanent Account Number (PAN) card, Voter ID card, Aadhaar card or Passport. Furthermore, an age verification document must also be presented – minimum deposit amount being Rs 1000.

Once you have submitted all necessary documents, you will receive your passbook and deposit slips. Moreover, using the Post Office Savings Account (POSA) debit facility you can add funds into your MSSC account in order to take advantage of its interest-bearing capacity and earn interest on their full amount of deposits.

If you wish to close your MSSC account before its one year mark has passed, submit a written request at your post office and be aware of a penalty of 2% of total deposit amount as an early closure penalty. Alternatively, pledge it against scheduled banks, RBI housing finance companies or any government-approved institutions as collateral.

How to withdraw money from MSSC?

The Mahila Samman Savings Certificate Scheme (MSSC) provides women with a reliable investment option with guaranteed returns, which increase along with inflation. To open an account, visit any post office or bank near you and request an MSSC application form; proof of identification (such as voter ID card or driving licence) and age (birth certificate or schooling certificates) will also be necessary to open your account.

Nirmala Sitharaman of the Union Finance Minister introduced the MSSC scheme as part of her 2023 Budget proposal, in order to promote women’s economic empowerment by encouraging investment in formal financial instruments. It was officially unveiled on April 1, 2023 and is available at over 1.59 lakh post offices throughout India; with two-year maturity periods.

Minimum deposits range between Rs 1,000 and Rs 2 lakh. Any woman, or the guardian of a minor girl child can open an account; however, multiple names cannot be registered when opening one account; premature account closure can only occur on death or extreme compassionate grounds, with partial withdrawals permitted after one year; up to 40% of deposits may be withdrawn as withdrawals.

What is the minimum balance required to withdraw money from MSSC?

MSSC is an investment scheme with a fixed annual interest rate of 7.5% per annum – significantly higher than bank fixed deposits of similar duration. Available at Post Offices and certain banks, it’s tax-exempt under Section 80C and account can be opened by women for themselves or guardians of girl children, with minimum initial deposits starting from Rs 1,000 up to max amounts of Rs 2 lakh possible (with 40% available for withdrawal before maturity).

MSSC accounts are an ideal way for women to invest securely and reliably, as they require minimal paperwork to open. Furthermore, this short-term savings scheme should not be compared with long-term saving schemes like PPF or SSY, which offer long-term investments; rather it should be judged against similar products on offer from competing providers.

Whoever wishes to open an account should visit their local post office or bank branch and present all required documents as well as fill out an application form. Once their application has been approved, they will receive a certificate of deposit that serves as proof of their investment.