The Mahila Samman Savings Certificate (MSSC) and Bank Fixed Deposit (FD) are two investment options for women in India. Both the options are designed to make the women of the country self-reliant, as per the Finance Minister Nirmala Sitharaman's budget speech in 2023.
The Mahila Samman Saving Scheme is exclusively designed for women. Women and girls can invest up to Rs. 2 lakhs for a tenure of two years. This scheme offers an annual return of 7.5 per cent, which is higher compared to other small saving schemes like NSC, PPF, SSY, etc. The scheme also provides an income tax rebate of Rs. 1.5 lakh under Section 80C and partial withdrawal facility. Women can open an MSSC account in any bank or post office from April 1, 2023. The account tenure will be from March 2023 to April 2023.
State Bank of India (SBI), the country's largest public sector bank, offers FD interest rates ranging from 3.00 per cent to 6.75 per cent for a tenure of 7 days to 2 years. However, the interest rate for Mahila Samman Savings Certificate is lower by 0.75 per cent. Other banks like HDFC Bank, ICICI Bank, Kotak Mahindra Bank also offer interest rates ranging from 3 per cent to 7 per cent on FDs for up to 2 years.
Compared to these bank FDs, the Mahila Samman Savings Account provides a higher interest rate. Hence, if you're thinking of investing up to Rs. 2 lakhs in an FD, MSSC could be a better option for you.
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