Mahila Samman Savings Certificate Calculator
Mahila Samman Savings Certificates: A New Small Savings Scheme for Women
The Mahila Samman Savings Certificates (MSSC) is a new small savings scheme for women announced by Finance Minister Nirmala Sitharaman in the Union Budget 2023-24. It came into effect late Friday after the Finance Ministry issued a gazette notification for the same.
Key Highlights of the MSSC
- The MSSC is a two-year tenure scheme that offers an attractive and fixed interest of 7.5% interest compounded quarterly.
- The scheme has flexible investment and partial withdrawal options with a maximum ceiling of Rs 2 lakh.
- The scheme is valid for a two-year period up to March 31, 2025.
- Only women and girl applicants can subscribe to the investment scheme.
Eligibility Criteria for the MSSC
To be eligible to open an MSSC account, you must:
- Be a woman or a girl.
- Be a resident of India.
- Open the account in your own name or in the name of your minor daughter.
How to Open an MSSC Account
You can open an MSSC account at any post office in India. To open an account, you will need to submit the following documents:
- A duly filled application form
- Two passport-size photographs
- Identity proof (Aadhaar card, Voter ID, Passport, Driving License, etc.)
- Address proof (Aadhaar card, Voter ID, Passport, Driving License, etc.)
Interest Rate and Deposit Limit for the MSSC
The MSSC offers an attractive and fixed interest of 7.5% interest compounded quarterly. The minimum investment amount is Rs 1,000 and in multiples thereof. The investment has to be made in a one-time lump sum deposit as no further deposits are allowed, and the maximum limit is Rs 2 lakh.
How to calculate Mahila Samman Savings Certificate Maturity Amount
To find out how much interest and final amount you will get from a deposit under the Mahila Samman Savings Certificate (MSSC) scheme, you can use this formula:
Interest Earned = Principal * ((1 + (Rate of Interest / 400))^(4 * Tenure in years)) – Principal
Maturity Value = Principal + Interest Earned
This formula shows how the interest is compounded quarterly and added to the principal amount at the end of the tenure.
Try our calculator for easy calculation.
For Example
Interest Earned = 100,000 * ((1 + (7.5 / 400))^(4 * 2)) – 100,000 = Rs 16,022
Maturity Value = 100,000 + 16,022 = Rs 1,16,022.
Premature Closure of the MSSC Account
The MSSC account can be closed prematurely after two years from the date of opening. However, a penalty of 1% of the amount withdrawn will be levied.
Taxation of the MSSC
The interest earned on the MSSC account is taxable under the Income Tax Act, 1961. The interest will be added to your income and taxed at your applicable income tax slab rate.
Withdraw
If you open an account with us, you can withdraw 40% of your balance after one year. This is a great option for women who want to save money and earn interest.
To find out how much you can earn with our Mahila Samman Saving Certificate, you can use the calculator on our website. Just enter your deposit amount and the duration of your investment and see the results.
The MSSC calculator will show you the maturity value, the interest rate, and the total interest earned.
Conclusion
The Mahila Samman Savings Certificate is a new and attractive small savings scheme for women. The scheme offers a high-interest rate, flexible investment options, and a maximum investment limit of Rs 2 lakh. The scheme is valid for a two-year period and can be opened by any woman or by a guardian on behalf of a minor girl.