MSSC: 7.5% interest rate attractive but no tax benefit a dampener

However, this scheme for women offers no tax benefit and is subject to potential reinvestment risk

The Mahila Samman Savings Certificate (MSSC), which was introduced in Union Budget 2023–24 and became available for investment from April 1, 2023, is in the news these days. On April 29, Prime Minister Narendra Modi urged women to enrol for it. The Union Minister for Women and Child Development, Smriti Irani, subsequently opened an account.

“The MSSC is a small savings scheme that has been made available to women depositors for a two-year period up to March 2025. One can invest up to Rs 2 lakh for a tenure of two years,” says Adhil Shetty, chief executive officer (CEO), Bankbazaar.com.