Mahila Samman Saving Certificate vs Sukanya Samriddhi Yojana: Which is the best women's savings scheme?

In the 2023 Budget, Finance Minister Nirmala Sitharaman introduced a special savings plan for women called Mahila Samman Saving Certificate (MSSC). This small savings scheme is tailored specifically for women, aiming to contribute to their financial empowerment. With various schemes dedicated to making women self-reliant, it prompts the question of which is the superior choice between MSSC and Sukanya Samriddhi Yojana (SSY).

Mahila Samman Saving Certificate Scheme

• Investment duration: Two years.

• Investment range: Minimum Rs 1000 to Maximum Rs 2 lakh.

• Interest rate: Government offers 7.5% interest, credited quarterly.

• Withdrawal: After the first year, the account holder can withdraw up to 40% of the amount.

• Account maturity: If opened in October 2023, the account matures in October 2025.

• Eligibility: Women of any age group can open an account.

• Account opening: Visit a bank or post office, fill an account opening form, provide KYC documents (Aadhaar and PAN), and deposit money through cash or cheque.

Sukanya Samriddhi Yojana

• Eligibility: Account for a girl child up to 10 years.

• Interest rate: 8% interest on the deposited amount.

• Investment range: Minimum Rs 250 to Maximum Rs 1.50 lakh annually.

• Investment period: Can invest until the girl child turns 15.

• Withdrawal: At 18, 50% withdrawal for studies; at 21, complete withdrawal.

• Tax benefits: Exemption up to Rs 1.50 lakh under Section 80C of Income Tax.

• Account opening: Can be opened at any bank or post office.

Decision points:

1. Duration: MSSC is short-term, SSY is long-term.

2. Eligibility: MSSC is for any woman, SSY is for girls.

3. Investment goal: Choose based on your investment goal, short-term or long-term.

Evaluate your financial goals and preferences to make an informed decision between MSSC and SSY.