Mahila Samman Savings Certificate Scheme vs. Fixed Deposit

Read on to discover which is a better investment option for women: Mahila Samman Savings Certificate Scheme vs. Fixed Deposit.
3 mins
26 July 2023

A woman's life must include both security and financial freedom. The Indian government has introduced a number of savings programmes to help women feel empowered and to encourage them to save and invest. Among them, the Mahila Samman Savings Certificate Scheme (MSSC), a programme specifically for women, has grown in popularity. While Fixed Deposits (FDs) are a well-known and dependable investment option, it's important to weigh the advantages of both MSSC and FDs in order to make a well-informed choice. In order to assist women in selecting the best savings plan, we will examine the qualities and benefits of the Mahila Samman Savings Certificate Scheme and contrast it with Fixed Deposits in this post.

Mahila Samman Savings Certificate Scheme (MSSC): An Overview

The Mahila Samman Savings Certificate Scheme is a government-backed initiative introduced to encourage women to save and secure their financial futures. MSSC is exclusively designed for women, providing them with a safe and reliable investment avenue. Managed by post offices across India, MSSC aims to empower women by promoting a culture of savings and fostering financial independence.

Key Features of the Mahila Samman Savings Certificate Scheme (MSSC):

  1. Attractive Interest Rates: MSSC offers competitive interest rates, which are subject to periodic revisions by the government. The scheme allows women to earn substantial returns on their investments over time.
  2. Lock-In Period and Maturity: MSSC has a lock-in period of five years, meaning the funds cannot be withdrawn before the completion of this period. Upon maturity, the invested amount, along with accrued interest, is returned to the depositor.
  3. Nomination Facility: MSSC allows the nomination of a beneficiary, ensuring that the investment proceeds go to the intended person in case of unforeseen events.
  4. Tax Benefits: The interest earned from MSSC qualifies for tax benefits under Section 80C of the Income Tax Act, enabling women to save on taxes.
  5. No Maximum Limit: Women can invest any amount they desire in the MSSC, making it a flexible savings option.

Mahila Samman vs. Fixed Deposit: A Comparative Analysis

Now let's compare Mahila Samman Savings Certificate Scheme with Fixed Deposits to understand which option better suits the financial goals of women:

1. Interest Rates:

  • MSSC offers competitive interest rates, which are often on par with or higher than FD rates. This makes it an attractive option for women seeking better returns on their savings.
  • FD interest rates may vary across banks and financial institutions, and they are influenced by market conditions. Bajaj Finance FDs offer a higher interest rate for special tenures which increases returns for investors.

2. Lock-In Period:

  • MSSC has a fixed lock-in period of five years, which ensures that women save and invest for the long term. This can be beneficial for those who wish to have a disciplined approach to saving.
  • FDs typically have more flexibility in terms of tenure options. Women can choose FD tenures ranging from a few months to several years, providing them with more choices to align their investments with specific financial goals.

3. Safety and Security:

  • Both MSSC and FDs are considered safe investment options, backed by the government or reputed financial institutions. The capital invested in both schemes is protected, ensuring the safety of the principal amount. Bajaj Finance FDs have one of the highest [ICRA]AAA(Stable) and CRISIL AAA/STABLE ratings ensuring the safety of your deposit.

4. Convenience and Accessibility:

  • MSSC is exclusively available through post offices, which may limit accessibility for some women residing in remote areas. On the other hand, FDs are offered by various banks and financial institutions, providing a broader range of options and easier access.

The Mahila Samman Savings Certificate Scheme and Bajaj Finance Fixed Deposits are both valuable savings options for women, each with its own set of advantages. MSSC's exclusive focus on women and competitive interest rates make it an appealing choice for those seeking a dedicated savings scheme. On the other hand, Bajaj Finance Fixed Deposits offer greater flexibility in terms of tenure options, various payout options, and also the benefit of loan against FD, which comes handy when emergency funds are needed.

Women should carefully assess their financial goals, risk tolerance, and liquidity requirements before making a decision. Some women may find MSSC a better fit for long-term savings goals, while others may prefer the flexibility of FDs for short-term or medium-term investments. Seeking advice from a financial advisor can provide further guidance in choosing the most suitable savings option based on individual financial needs and aspirations.


As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.