Finance Minister Nirmala Sitharaman had announced a special scheme for women while presenting the budget on 1 February. It is believed that this scheme will be helpful in increasing financial awareness especially among women of low income group. Its interest rate is higher than other small savings schemes
Finance Minister Nirmala Sitharaman has announced a special scheme for women in the Union Budget 2023 . Its name is Mahila Samman Savings Certificate ( MSSC ). The government claims that this scheme will empower women financially. This scheme will be for two years. This means that the scheme will be available till March 2025. There is a lot of discussion about this scheme. Experts say that in the full last budget presented before the elections next year, the government has made some big announcements for women, senior citizens and taxpayers. What is this scheme, what will be the interest rate on depositing in it, will tax benefit be available on it? Women want to know the answers to these questions.
Who can invest?
Any woman can invest in this scheme. There is no age limit for investment. This means that deposits can be made in this scheme even in the name of girls.
How long will the investment be for?
Investment in this scheme will be for 2 years. This means that if you deposit in this scheme in March 2023, you will be able to withdraw your money in March 2025. In this way your money will be blocked for 2 years. However, the option of partial withdrawal has been given before the stipulated time.
How much interest will be received in this?
Finance Minister Nirmala Sitharaman had announced about this scheme on 1 February. He had said that the interest rate of MSSC would be 7.5 per cent per annum. This interest rate will remain fixed during the tenure of the scheme.
Beneficial to whom?
Experts say that this scheme is suitable for women who want to deposit money for a short period of time. Especially women of low income group can take advantage of 7.5% interest for 2 years by investing in this scheme.
Is the interest rate of this scheme low?
Currently State Bank of India (SBI), Axis Bank, HDFC Bank and ICICI Bank are offering 5-7% annual interest rate on bank fixed deposits. SBI is giving 6.75% interest on 2 years deposit. Axis Bank is giving 7.26 per cent. HDFC and ICICI Bank are offering 7 per cent. Some experts say that the interest rate of MSSC is fine. This will motivate women to deposit money in the bank. Some experts say that the government should have kept the interest rate of this scheme higher.
Even if the interest rate of this scheme is considered low, it is more than the interest rate of PPF and National Savings Certificate. The interest rate for PPF is 7.1 per cent, while the interest rate for NSC is 7 per cent. However, PPF and NSC are long term schemes. PPF is a 15-year scheme, while money has to be kept for 5 years in NSC.
