Mahila Samman Savings Certificate: This women-only instrument offers higher interest than most bank FDs

financialexpress.com:

In order to widen the reach of Mahila Samman Savings Certificate (MSSC), the ministry of finance has now permitted public and private sector banks to implement and operationalise it. The one-time scheme for women, which is available for subscription in post offices, has a fixed tenure of two years and the maximum amount of investment is `2 lakh. The interest rate offered on MSSC is 7.5% per annum, compounded quarterly. As a result, the effective interest rate is 7.7%, which is much higher than most bank fixed deposits and even post office time deposits of similar tenure. An investor can apply for the scheme on or before March 31, 2025.

The interest amount will be credited in account and paid at the time of closure of account. In fact, the two-year post office time deposit is offering 7% interest rate in the three months to September this year, an increase of 10 basis points from the quarter ended June.

Similarly, one-year post office time deposit offers 6.8%, three-year deposit offers 7% and the five-year deposit offers 7.5%.

Experts say as the tenure is short and interest rates have peaked, women depositors should park money in the scheme to earn a higher interest rate than any bank deposit. Adhil Shetty, CEO, Bankbazaar, says, the MSSC is a great way for women to save money and earn a higher interest rate. “The scheme is backed by the government so it is a safe and secure investment option for women, and it offers a higher interest rate than many other small savings schemes.”

The scheme was announced in the Budget this year to provide financial security to girls and women in the country. The account can be opened by a woman for herself or by the guardian on behalf of a minor girl. The minimum amount of investment is