In order to commemorate “Azadi ka Amrit Mahotsav,” Finance Minister Nirmala Sitharaman announced a new small savings scheme for women investors in the Union Budget 2023–24. Mahila Samman Saving Certificate (MSSC) will be the name of the program.
This will offer deposit options for up to Rs 2 lakh in the names of women or girls with the option of partial withdrawal with a tenor of two years and a fixed interest rate of 7.5%.
The Mahila Samman Savings Certificate has a fixed interest rate from April 2023 to March 2025.
The notification was recently issued. The two-year tenure plan has flexible investment and partial withdrawal options with a maximum of Rs 2 lakh and an attractive fixed interest rate of 7.5% compounded quarterly. Additionally, with effect from today, interest rates on a number of small savings plans have been revised upward.
“These measures will attract more investment in these schemes through post offices, particularly in rural areas and among girls, women, farmers, artisans, senior citizens, factory workers, government employees, small traders, and other social groups.
They will greatly benefit the small savings customers of post offices. The Finance Ministry stated, “They will get a better return on their investment in small savings schemes.”
Starting on April 1, the government has increased the interest rate on a number of Small Savings Schemes by up to 70 basis points (one basis point is equal to one percentage point) for the first quarter of the fiscal year 2023-24.
Small savings plans’ interest rates are typically reviewed quarterly by the government. The Shyamala Gopinath Committee provided the formula for calculating interest rates for a small savings plan.
The committee had suggested that the benchmark for the interest on various small savings instruments should be the yields on government bonds, which should be reset every first of April.
The National Savings Certificate’s interest rate was increased by 70 basis points, Kisan Vikas Patra’s interest rate was increased by 30 basis points, and Sukanya Samriddhi Yojana’s interest rate was increased by 40 basis points.
In order to control rising inflation, the Reserve Bank of India (RBI) has also increased the repo rate since May 2022. Banks are raising rates in line with the RBI, which is good news for various deposit plans.
The procedures apply:
- Obtain the Mahila Samman Bachat Patra Yojana form from your local bank or post office.
- Fill out the form with your personal information.
- Submit the form with the necessary documentation.
- Choose how much you want to put down as a deposit.
- Make the payment in cash or by check.
- You will receive a certificate as evidence of your investment.
